Means-Tested Government Transfer Programs May Reduce Work Incentives Because

question 159

Multiple Choice

Means-tested government transfer programs may reduce work incentives because

• A)only lazy people participate in these programs.
• B)these programs actually pay people not to work.
• C)a family can live a very comfortable, middle-class lifestyle on welfare payments.
• D)for every additional dollar earned, welfare payments are reduced, effectively lowering the wage.
• E)these programs allow people to make money working only part-time.

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