Question

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.in the absence ofany earnings, leo will receive ______ in cash from each program, for a total of ______ in benefits.

Answer 1

Answer: $225; $450

As stated, Leo is a welfare recipient who qualified for two means-tested cash benefit programs. He receives $225 from each program if he does not earn any income. So for two programs, he receives a total of $450 in benefits.