The Poverty Trap Refers to

question 5

Multiple Choice

The poverty trap refers to

• A) a situation in which those receiving state benefits may be almost no better off if they choose to work more to earn more income for themselves and their families because doing so will mean they have to pay back the benefits they have previously received.
• B) a situation in which workers are unable to find jobs.
• C) a situation in which those receiving state benefits may be almost no better off if they choose to work more to earn more income for themselves and their families because doing so will reduce the amount of benefit income to which they are entitled and increase the amount of tax they must pay.
• D) a situation in which those receiving state benefits are discriminated against by employers and so find it more difficult to find jobs.

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Definitions:

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