Final answer:
Susan's total income remains at $16,000 regardless of how many hours she works due to the reduction in government support with increased earnings. A table was created showing examples of hours worked, earnings from work, government support, and total income which illustrate the income-cliff effect.
Step-by-step explanation:
The question presented involves creating a table that illustrates how Susan's work hours and earnings affect her government support and total income. To calculate this, we assume Susan can earn $8 per hour and if she chooses not to work at all, she is eligible to receive $16,000 in government benefits.
However, for every dollar she earns from working, her government benefit is reduced by one dollar. Below is an illustrative table (not exhaustive) showing Susan's choices of how many hours to work, her earnings from work, the government support she receives, and her total combined income.
Table:
- Hours Worked: 0 | Earnings: $0 | Government Support: $16,000 | Total Income: $16,000
- Hours Worked: 500 | Earnings: $4,000 | Government Support: $12,000 | Total Income: $16,000
- Hours Worked: 1,000 | Earnings: $8,000 | Government Support: $8,000 | Total Income: $16,000
- Hours Worked: 1,500 | Earnings: $12,000 | Government Support: $4,000 | Total Income: $16,000
- Hours Worked: 2,000 | Earnings: $16,000 | Government Support: $0 | Total Income: $16,000
This table shows the income-cliff effect, where additional work does not increase total income due to the reduction in government support.