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Jones, who is currently unemployed, is a participant in three means-tested welfare programs: food stamps, rent stamps, and day care stamps
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? He will make an additional $__ per week if he takes the job. X ? 108
The CARES Act was signed into law in March 2020. It provides for Economic Impact Payments to American households of up to $1,200 per adult for individuals whose income was less than $99,000 (or $198,000 for joint filers) and $500 per child under 17 years old - or up to $3,400 for a family of four. These individual payments could be considered O a form of universal guaranteed income. an earned-income tax credit. ? an in-kind transfer. O a minimum wage.
Expert Solution
ones's total earning from welfare per week =$120
Reduction in welfare benefits = 0.30 ×120 =$36
Total benefits = 150 -36 = 114.
Total earning of Jones per week = 120 + 114 = $234.
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