Question

7. Suppose that a government antipoverty program guarantees every family with a single mother and two children $15000 in income. With this program, each time the mother earns $1,000, the government will deduct $1,000 of its support. Suppose that the hourly wage is $10.75. Given this data, complete the table:

Amount Worked (hours)	Total Earnings	Government Support	Total Income
0
500
1000
1500
2000
2500
3000

Answer 1

The Total earning for 2^nd row = 500 hrs * $10.75 = 5375

For govt support, we will deduct value from support till the time Total earnings are < 15000, post which govt support = 0.

In row 2, for 5375 earning, 5000 will be deducted while for 3^rd row, 10000 is deducted.

Total Income would be a sum of Govt support + total earnings.

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