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

question 6

Multiple Choice

Leo is a welfare recipient who qualifies for two means-tested cash benefits.If he does not earn any income,he receives $225 from each benefit.For each dollar he earns (which his employer is required to report to the welfare agency) ,each benefit is reduced by 75 cents until the benefit equals zero.
If Leo only values income and not how the income was acquired,then he must earn __________ to be as well off as when he earns __________ and receives benefits.

• A)$300;nothing
• B)$150;$50
• C)$450;nothing
• D)$350;nothing

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Definitions:

Number Expressed

A way of representing a quantity or value in terms of digits or symbols.

Thousandths

A fractional part in a series, representing one part out of a thousand.

Hundred-Thousandths

A decimal fraction represented as one part in a hundred thousand, indicating a very small quantity in precise calculations.

Decimal Point

The period between two numerals.