In New York, a welfare recipient can earn $90 per month without having her benefits reduced. Beyond $90, benefits are reduced by 57 cents for every dollar of earnings. Consider Jackie, a resident of New York, who can earn $10 per hour. If she does not work at all, she is eligible for welfare benefits of $577.

1. If she works 10 hours, how much is her labor income, how much is her welfare benefits, and how much is the total income that is available to her to spend on all the goods and services (that is C in the LL model)?

2. B After Jackie works a certain number of hours, she does not receive any benefits at all. What is that number of hours?

Answer rating: 100% (QA)

a In NY with a wage rate of 10 per hour can earns 100 Because the deduc... View the full answer