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Luisa earned 1,200 at her part-time job, and500 from babysitting in cash. Which is TRUE?

1) She will report her total income as $1,700.
2) She will report her total income as $1,200.
3) She will report her total income as $500.
4) Luisa is required to file a tax return.

User Mcskinner
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1 Answer

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Final answer:

Susan is faced with an antipoverty program that offers diminishing returns for additional work, giving her little incentive to increase her work hours due to government support being reduced by every dollar earned and the opportunity costs involved.

Step-by-step explanation:

The student's question is related to the impact of government assistance programs on individual work incentives, specifically relating to a scenario with Susan, a single mother. To determine the impact, we would create a table showing various levels of work hours and the corresponding earnings, government support, and total income.

The table would illustrate the trade-offs Susan faces between working and receiving government benefits. With an antipoverty program that provides a guaranteed income that is reduced dollar-for-dollar by earned income, it becomes clear that there are diminishing returns to working more hours due to the reduction in government support.

In this situation, Susan's total income only marginally increases after a significant amount of additional work. This may give her little incentive to work, as her income would mostly remain the same regardless of whether she works or not. Furthermore, the opportunity costs associated with working, such as time away from her children, might further reduce her incentive to work.

User Vipul J
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