Susan is a single mother with three children. She is a cashier at a food market earning $7.75 per hour and works up to 2,000 hours per year. She is eligible for government benefits, so if she does not earn any income, she will receive a total of $17,050 per year. She can work and still receive government benefits, but for every $1 of income, her government stipend is $1 less.

The government has decided to change the benefits policy of every$1of income earned to reduce the government's stipend by60 cents. How will this change Susan's benefits received? What are her new choices? Complete the Revised Poverty Trap Table to present Susan's options and provide answers to the following:

Number of Work Hours Earnings from Work Government Benefits Total Income

2,000 - - -

1,700 - - -

1,500 - - -

1,200 - - -

900 - - -

600 - - -

300 - - -

0 - - -

• What are the advantages of Susan working?
• What are the disadvantages of Susan working?
• What are the advantages of Susan receiving government benefits?
• What are the disadvantages of Susan receiving government benefits?
• Based on your findings from the Poverty Trap Table, should Susan continue to work or only receive government benefits? Why or why not?
• Based on your findings from the Revised Poverty Trap Table, should Susan continue to work or only receive government benefits? Why or why not?
• What are your recommendations for Susan to progress from the poverty trap?