Use the Following Formula to Answer the Indicated Question: Welfare

Multiple Choice

Use the following formula to answer the indicated question: Welfare benefit = Maximum benefit - 0.7 [Wages - (Work expenses + Child care costs) ] Suppose Ramirez works 1,800 hours per year at a wage of $7 per hour,has no child care expenses,and has work expenses of $600.If the state maximum welfare benefit is $13,000 per year,based on the welfare formula given,Ramirez's welfare benefit will be

A) Zero because his income has exceeded the limit.
B) $400.
C) $1,000.
D) $4,600.