Leo Is a Welfare Recipient Who Qualifies for Two Means-Tested

question 70

Multiple Choice

Leo is a welfare recipient who qualifies for two means-tested cash benefit programs. If he does not earn any income, he receives $225 from each program. For each dollar he earns (which his employer is required to report to the welfare agency) , his benefit from each program is reduced by 75 cents until the benefit equals zero. When Leo's earnings are less than $300, each extra dollar he earns causes his total income (earnings plus benefits) to:

• A)fall by 25 cents.
• B)rise by 50 cents.
• C)fall by 50 cents.
• D)rise by 75 cents.

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