A.

Poverty Trap Table

Number of Work Hours Earnings from Work Government Benefits

2,000 15500 1550
1,700 13175 3875
1,500 11625 5425
1,200 9300 7750
900 6975 10075
600 4650 12400
300 2325 14725
0 0 17050

B. Revised Property Trap Table

Number of Work Hours Earnings from Work Government Benefits

2,000 15500 7750
1,700 13175 9145
1,500 11625 10075
1,200 9300 11470
900 6975 12865
600 4650 14260
300 2325 15655
0 0 17050

Susan is a single mother with three children. She is a cashier at a f

hours per year. She is eligible for government benefits, so if she do
per year. She can work and still receive government benefits, but f

The government has decided to change the benefits policy of ever

by 60 cents. How will this change Susan's benefits received? Wha
Table to present Susan’s options and provide answers to the follow
●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 bene
●Based on your findings from the Poverty Trap Table, should Sus
Table to present Susan’s options and provide answers to the follow
●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 bene
●Based on your findings from the Poverty Trap Table, should Sus
Why or why not?
●Based on your findings from the Revised Poverty Trap Table, sh
benefits? Why or why not?
●What are your recommendations for Susan to progress from the

Answe
In the first benefits policy, the government has set that for every d
from the market (as salary) is a dollar that leaves the amount of th
In the second benefit policiy, instead of losing an entire dollar for
earned. In overall, this means considering the total income for the
higher sum.
Now she has the choices of working for a desired amount of hours
government.

●What are the advantages of Susan working?

=> The advantages that exist when Susan works are that if she do
obtain an income that is higher than the salary from the market or
hours Susan works for, the greater her income will be. Moreover, t
issues like depression.

●What are the disadvantages of Susan working?

=> The disadantages of Susan working are: if she is working in t
the time spent at work would lead to an amount of mone that is eq
was not working. An other disadvantage is the situation where the
as minimum. Or they just do not hire part time emplyee. In this ca
and energy just for nothing super ineresting.

●What are the advantages of Susan receiving government benefits

=> IfSusan is not working, and just receiving the benefits from th
amount ($17050) she would have earned for working for 2000 hou
benefit of the government, she will make more money than she wo
government. Moreover, Susan will have more free time in this situ
●What are the advantages of Susan receiving government benefits
=> IfSusan is not working, and just receiving the benefits from th
amount ($17050) she would have earned for working for 2000 hou
benefit of the government, she will make more money than she wo
government. Moreover, Susan will have more free time in this situ

●What are the disadvantages of Susan receiving government bene

=> In the case where Susan does not work and just receive the be
the sum from the government and miss the chance of finding a job

●Based on your findings from the Poverty Trap Table, should Sus
Why or why not?
=> According to the results of the Poverty Trap Table, I would re
receiving the benefit of the government, for wether she keeps wor
can stop working and use her time to acquire some knowledges (e
she can have more potential and more probability to find ore intere

●Based on your findings from the Revised Poverty Trap Table, sh

benefits? Why or why not?
=> According to the results of the Revised Poverty Trap Table, I
money from te government, for in this case her income wil be grea
job, which is interesting.

●What are your recommendations for Susan to progress from the

=> I would recommend Susan to estimate how much timedoes sh
the time needed she should figure out the amount of hours that she
new skill. This way, she wil keep makig money to live, and prepar
 Total Income
17050
17050
17050
17050
17050
17050
17050
17050

Total Income
23250
22320
21700
20770
19840
18910
17980
17050

he is a cashier at a food market earning $7.75 per hour and works up to 2,000
benefits, so if she does not earn any income, she will receive a total of $17,050
nment benefits, but for every $1 of income, her government stipend is $1 less. 

nefits policy of every $1 of income earned to reduce the government’s stipend

efits received? What are her new choices? Complete the Revised Poverty Trap
nswers to the following:

g?
government benefits?
ng government benefits?
p Table, should Susan continue to work or only receive government benefits?
 nswers to the following:

g?
government benefits?
ng government benefits?
p Table, should Susan continue to work or only receive government benefits?

verty Trap Table, should Susan continue to work or only receive government

o progress from the poverty trap?

Answers
s set that for every dollar earned, the stipendis 1$. That means each dollar earned
ves the amount of the government benefit.
an entire dollar for each dollar earned, Susan will only lose 60 cents per dollar
total income for the first benefit policy, the second benefit policy will generate a

red amount of hours, or not working at all and just receive the benefit of the

rks are that if she does so, she will have a higher income. In other words, she will
from the market or the benefit of the government. The higher the amount of
will be. Moreover, the facrt of working will create satisfaction, so she can avid

g?
f she is working in the the situation of the first benefit policy. If this happens, all
nt of mone that is equal to the amount the government would provide her if she
situation where the policy of the market requires a really high number of hours
e emplyee. In this case, Susan would make huge efforts and sacrifices on her time

government benefits?
the benefits from the government, she will earn without efforts more than the
working for 2000 hours ($15500). If Susan is working, and still receiving the
e money than she would if she only works, or only receive the benefits of the
free time in this situation.
 government benefits?
the benefits from the government, she will earn without efforts more than the
working for 2000 hours ($15500). If Susan is working, and still receiving the
e money than she would if she only works, or only receive the benefits of the
free time in this situation.

ng government benefits?
nd just receive the benefit from the government, she might feel comfortable with
ance of finding a job that can pay her way better.

p Table, should Susan continue to work or only receive government benefits?

ap Table, I would recommend that Susan does not keep working, and just
ether she keeps working, or she does not, her ttal income will be the same. So she
ome knowledges (even on the internet),or some skills in particular domains, so
lity to find ore interesting jobs.

verty Trap Table, should Susan continue to work or only receive government

overty Trap Table, I would recommend that Susan kees working and receiving the
r income wil be greater than the beneit of the gvernment or the earning from her

o progress from the poverty trap?

w much timedoes she needs to get a new skill or domain well. Dependeding on
unt of hours that she will spend working, in order to let the sufficient time for the
y to live, and prepare for a better life tomorrow!
to 2,000
f $17,050
$1 less. 

stipend
erty Trap

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