Final answer:
Susan's work decision is influenced by the current assistance program, which offsets her earnings with reduced government benefits, leading to a potential disincentive to work. Earnings replace government support up to a certain point, and additional opportunity costs must be considered.
Step-by-step explanation:
Effects of Assistance Program on Work Incentive and Opportunity Costs
Susan is a single mother who faces a decision about how much to work given a direct relationship between her earned income and a reduction in government benefits. A table reflecting her working hours, earnings, government support, and total income would help analyze the impact of the assistance program on her incentive to work. Such a table reveals that Susan's total income remains the same up to a certain number of hours because her earnings directly replace her government support. Therefore, the assistance program presents a disincentive to work since she does not begin to earn more total income until working a significant number of hours beyond full-time. Additionally, opportunity costs such as child care and transportation may further reduce her incentive to work.