Final answer:
Teresa's earned income is $4,200 from her job and her gross income is $4,350, which includes interest from savings. For Susan, a table would show how working more affects both her earnings and government support, impacting her total income and potentially her incentive to work, considering both the direct financial effects and opportunity costs.
Step-by-step explanation:
The question pertains to Teresa's earned income and gross income for the tax year 2019. Teresa's earned income would be the amount she earned from working, which is $4,200. In addition to her earned income, she received $150 in interest from her savings account. Therefore, her gross income would be the sum of her earned income and the interest received, totaling $4,350.
To address the scenario with Susan, a detailed table would need to be created to show the relationship between her work hours, earnings from her job, government support, and total income. As Susan earns more from work, her government support decreases. The final total income would need to consider both sources of income (earnings and government support). This kind of assistance program can affect Susan's incentive to work, as any dollar she earns will reduce her government support by the same amount; thus, working more might not substantially increase her overall income. There may be additional opportunity costs, such as childcare expenses or quality time with her children, that could further reduce her incentive to work.