Final answer:
A government antipoverty program provides fixed income support that decreases as earned income increases, likely diminishing Susan's incentive to work due to constant total income and additional opportunity costs.
Step-by-step explanation:
When evaluating the impact of a government antipoverty program on Susan's incentive to work, we acknowledge that the program guarantees a certain level of income, which in this case is $16,000, if no income is earned. As Susan earns more income from work, her government support decreases by an equal amount, effectively capping her total income at a certain level.
Creating a table to illustrate Susan's work choices and total income helps us understand this dynamic. Columns would include hours worked, earnings from work, government support, and total income. For instance, if Susan chooses to work 500 hours in a year, she would earn $4,000 from work ($8 per hour times 500 hours). The corresponding government support would be reduced by $4,000, resulting in the same $16,000 total income. As the hours increase, her earned income increases and government support decreases, but total income remains constant until earnings exceed the guaranteed amount.
The incentive to work is likely diminished due to the fact that additional work does not increase Susan's total income until a high threshold of worked hours is exceeded. Additionally, opportunity costs, such as childcare expenses, transportation costs, or valuable time with her children, may further reduce the appeal of working additional hours.