Question

Carrie Overwood works fluctuating work schedules. If this was a BELO plan with a pay rate of $23.45 per hour and a maximum of 48 hours, how much would Overwood be paid for 42 hours?

Answer 1

The question involves making a table to show the economic decisions of Susan, factoring work hours and the corresponding reduction in government support, which also considers the effects on her incentive to work and potential opportunity costs.

Step-by-step explanation:

The question involves creating a table that illustrates the economic choices of a single mother, Susan, who can work up to 1,800 hours per year at $8 per hour, or receive government benefits of $16,000 if she does not work at all. For every dollar she earns, her government support is reduced by a dollar, which affects her total income and possibly her incentive to work. To answer the student's question, we need to calculate Susan's total income based on different combinations of work hours and government support.

Creating such a table highlights the trade-offs between work and leisure and the impact of government assistance on workforce participation. The potential reduction in government support as an individual's income increases can sometimes create a disincentive to work, known as the poverty trap. Additionally, opportunity costs, including time spent away from family or personal pursuits, could further reduce her incentive to work.