Leo Is a Welfare Recipient Who Qualifies for Two Means-Tested

Multiple Choice

Leo is a welfare recipient who qualifies for two means-tested cash benefit programs. If he does not earn any income, he receives $225 from each program. For each dollar he earns (which his employer is required to report to the welfare agency) , his benefit from each program is reduced by 75 cents until the benefit equals zero. In the absence of any earnings, Leo will receive ________ in cash from each program, for a total of ________ in benefits.

A) $225; $225
B) $225; $450
C) $225; $400
D) $200; $400