Tim Is a Single Father with 1 Child

Multiple Choice

Tim is a single father with 1 child. He can work as a bagger at the local grocery store for $6 per hour up to 1,200 hours per year. He is eligible for welfare, and if he does not earn any income, he will receive $15,000 a year. If Tim works, the government policy is to deduct 60 cents from his welfare stipend for every $1 that he earns in income. This government policy provides a monetary incentive to work, because

A) it pays the same amount, regardless of how much Tim works
B) Tim receives a stipend regardless of whether he works or not
C) Tim's income level increases the more he works
D) benefits are not phased out