In the negative income tax plan, a guarantee of $5,000 and a tax rate of 50 percent imply a break-even income of which of the following figures?

a. $1,000
b. $2,500
c. $10,000
d. $12,500


c

Economics

You might also like to view...

To determine an appropriate congestion tax, an economist has to assume that people respond to incentives

Indicate whether the statement is true or false

Economics

Fogel's (1964) work on railroads after the Civil War shows that they did not dominate the markets for steel, coal or wood

Indicate whether the statement is true or false

Economics

A person who previously had a full-time job has been paroled from prison and has applied for a job is considered

A) a reentrant. B) a job loser. C) a new entrant. D) not in the labor force.

Economics

You probably know why firms advertise. But the incentives to advertise vary from market structure to market structure. In which market structure is there a weak, but still existent, reason to advertise?

a. monopoly b. oligopoly c. monopolistic competition d. perfect competition e. there is no weak incentive—they are always strong

Economics