John Doe Participates in a Welfare Program Which Pays Him

Multiple Choice

John Doe participates in a welfare program which pays him $6,000 dollars. He can work but he loses 50 cents of the welfare check for every dollar he earns over $5,000, if John wants to live on more than $11,000 per year and he can find a minimum wage job for $8.00/hour, what is his effective wage that he would consider when deciding whether or not to work?

A) $4/hr.
B) $8/hr.
C) $17,000 divided by 2000 hours in a year = $8.5.
D) $0/hr.