If welfare benefits equal the poverty gap for each household in poverty, then the
A. Production possibilities curve will shift to the right.
B. Poor have a strong incentive to begin working.
C. Effective marginal tax rate for welfare recipients is 100 percent.
D. The poverty gap will become greater.
Answer: C
You might also like to view...
If wages are "sticky downwards", then this means that during periods of high unemployment, wages will:
A. fall quickly. B. resist falling. C. resist rising. D. rise quickly.
If Hong Kong continues to devote more resources to accumulating capital than the United States, Hong Kong will continue to grow more rapidly than the United States
Indicate whether the statement is true or false
Average revenue, demand, and price are all depicted by the same curve for a monopoly
a. True b. False
The Laffer curve indicates which of the following?
A. There is an ideal tax-revenue-maximizing tax rate for government taxes. B. There is an ideal interest rate that will maximize investment spending. C. There is an ideal income tax rate on individuals, depending on their consumption behavior. D. There is an ideal amount of government spending that will lead to full national employment.