Jones, who is currently unemployed, is a participant in three means-tested welfare programs: food stamps, rent stamps, and day care stamps. Each program grants him $150 per week in stamps, which can be used like cash to purchase the good or service they cover. If benefits in each program are reduced by 30 cents for each additional dollar Jones earns in the labor market, how will Jones's economic position change if he accepts a job paying $120 per week?

Question

Emely Merritt

Business

27 August, 02:11

Jones, who is currently unemployed, is a participant in three means-tested welfare programs: food stamps, rent stamps, and day care stamps. Each program grants him $150 per week in stamps, which can be used like cash to purchase the good or service they cover. If benefits in each program are reduced by 30 cents for each additional dollar Jones earns in the labor market, how will Jones's economic position change if he accepts a job paying $120 per week?

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Answers (1)

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Ally Coleman · Answer 1

New Income = $234

Explanation:

Giving the following information:

Each program grants him $150 per week in stamps, which can be used like cash to purchase the goods or services they cover. If benefits in each program are reduced by 30 cents for each additional dollar.

New job=120

Program = 150 - 0.30*120 = $114

Income = 120 + 114 = $234