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Business, 19.12.2019 00:31 bcox32314

Imagine a person who makes $10 per hour working 40 hours per week for 50 weeks of the year. she is currently eligible for a welfare program, available to people with income equal to or less than $20,000, that gives her $1,200 a year. no such program is available to people with income above $20,000 per year. her boss offers her a promotion that would increase her wage by 50 cents per hour. now suppose the welfare program has a different structure. individuals are eligible for reduced benefits if their income is above $20,000. for every dollar an individual earns beyond $20,000, their welfare benefits are reduced by 25 cents. in other words, if an individual earns $24,000, they have earned $4,000 beyond $20,000, and the reduction in benefits is $4,000*0.25 = $1,000. they receive $200 instead of $1,200.a. her total annual income before the promotion is . b. her total annual income if she accepts the promotion is . c. she accept the promotion if she wants to have higher income. d. under this new program, her total annual income if she accepts the promotion is . e. uder this new program, she accept the promotion if she wants to have higher income.

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