Lesley is a single mother with 2 children. She can earn $10 per hour and can work up to 1,800 hours per year. However, if she does not earn any income at all, she will receive government benefits totalling $18,000 per year. For every $1 of income she earns, her level of government support is reduced by $1. Lesley
has no monetary incentive to work, though she may still choose to work
has a monetary incentive to work and will maximize her income if she works for 300 hours
has a monetary incentive to work and will maximize her income if she works for 600 hours
has a monetary incentive to work and will maximize her income if she works for 900 hours