If the government decided that each family needs a minimum income of $25,000 and promised to make up the difference between whatever a family earned and $25,000 . which of the following is correct?
a. The government is effectively taxing every dollar earned up to $25,000 at a rate of 100%.
b. This program would reduce the incentive to work to earn any wage up to $25,000.
c. If workers are discouraged from working due to this program, they will miss any on-the-job training that would have otherwise occurred, limiting their ability to improve their skills.
d. All of the above are correct.
d
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In early 2012 the price of computer hard disc drives rose. In a demand and supply model, shifts in what curve or curves could have brought about the higher price?
What will be an ideal response?
According to critics of new Keynesian economics, it is doubtful that
a. menu costs are very important in the real world. b. efficiency wage considerations play an important role in the real world. c. bargaining models are of significance in the real world. d. All of the above e. None of the above
Unlike the 1920–21 episode, 1929–30 farm prices stood up fairly well when other prices fell
Indicate whether the statement is true or false
A utility-maximizing consumer equalizes marginal utilities across all goods
a. True b. False