Question

Based on a four week work month and a 40 hour work week. Which amount is closest to the combined hourly wage we needed for this family to pee is budgeted expenses?

Answer 1

To meet the budgeted expenses for a single-parent family earning $8 per hour, working 40 hours per week, 50 weeks a year would result in an annual income of $16,000. A slight income increase to $18,400 occurs only if work hours are significantly increased to 2,300 yearly.

Step-by-step explanation:

Analyzing the labor-leisure budget constraint for a single-parent family, we can understand the relationship between work hours and income, and determine the necessary hourly wage to meet a budgeted expense. With an $8 per hour wage, working 40 hours a week for 50 weeks a year, the mother would earn $16,000 annually. To go beyond the guaranteed income without government assistance and considering the choices on the budget constraint line, there is an indication that increasing the hourly wage can change work and leisure balance while achieving a higher income. For instance, working 2,300 hours (44 hours per week) at the same wage would only slightly increase the income to $18,400, showing the limitations of low-wage work in escaping poverty.