Programs Associated with the Welfare State Are Believed to Cause

question 15

Multiple Choice

Programs associated with the welfare state are believed to cause deadweight loss since they:

• A)affect the amount of disposable income that households below the poverty line have to spend.
• B)affect incentives to work and to save.
• C)are supported by many political parties.
• D)are based on the ability-to-pay principle.

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Definitions:

Other Half

Often refers to a concept in Platonic philosophy where each soul is divided and seeks its counterpart to become whole.

Reestablish

The act of restoring or bringing something back to its former position or condition.

Types

Various categories or sorts distinguished by a specific characteristic.

Bonds

Financial instruments representing a loan made by an investor to a borrower, typically corporate or governmental, which pays periodic interest payments and returns the principal at maturity.