Final answer:
The task is to analyze an income table reflecting a single mother's work hours and earnings juxtaposed against government assistance. It illuminates the disincentives and opportunity costs embedded in the assistance program, showing its impact on work motivation.
Step-by-step explanation:
Income Analysis for Assistance Program
The scenario described involves creating an income table to represent the work choices of Susan, a single mother, and the corresponding government support she would receive at different levels of earned income. Susan has the opportunity to work up to 1,800 hours a year at a rate of $8 per hour. Every dollar earned from work would reduce her government assistance by the same amount, with a base government support of $16,000 if she does not work at all. This setup provides a framework to analyze the intersection of labor, government benefits, and overall income, demonstrating how the aid program impacts her incentivization to work.
Creating such a table reveals the disincentive to work that may arise due to the reduction in government benefits as income increases. It also highlights the need to consider opportunity costs, such as childcare or work-related expenses, which may further diminish the attractiveness of working additional hours. The assistance program creates a situation where Susan must decide between spending time with her children or working more hours for potentially negligible financial gain.