Question

Janet (25) and her son Morgan (2) lived together all year. They moved in with Janet's mother, Missy (48), on April 12 and stayed through the end of the year. Janet's gross income was $35,000. She provided 80% of her and Morgan's support. Morgan did not provide more than half of his own support. Missy's gross income was $22,000. Janet is single. Are Janet, Morgan, and Missy all U.S. citizens? Also, does Janet plan on claiming Morgan as a dependent?

Answer 1

The question concerns Susan's total income relative to the hours she works and corresponding government assistance, which provides support but potentially reduces her incentive to work due to its structure.

Step-by-step explanation:

The provided scenario examines how government support programs affect Susan's total income based on her work hours and earnings. Each dollar earned reduces the amount of government assistance, which creates a financial disincentive for Susan to work additional hours. A table can be created to illustrate these effects, and it should include the following columns: Hours Worked per Year, Earnings from Work, Government Support, and Total Income. Additionally, considering the reduced government support as earnings increase, Susan may face opportunity costs such as less time with her children, which could further demotivate her from working more hours. In essence, the assistance program, while providing crucial support, may also impact Susan's incentive to work.