Welfare Recipients Are Sometimes Faced with a Withdrawal of Welfare

question 26

Multiple Choice

Welfare recipients are sometimes faced with a withdrawal of welfare benefits and an increase in income tax as their earned income rises.This creates a problem because

• A)firms become unwilling to hire people that are currently unemployed.
• B)of the powerful disincentives to work for low-income individuals.
• C)of the incentives for workers to shirk and/or retire early.
• D)of the incentives for firms to lay off workers more frequently for short periods.
• E)it is administratively difficult to track these individuals.

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Definitions:

Common Law Rule

A principle or rule established in previous legal cases that is either binding on or persuasive for a court or other tribunal when deciding subsequent cases with similar issues or facts.

Perfect Tender Rule

A legal principle that requires the delivery of goods to be exactly as specified in the contract without any deviations or defects.

Conforming Goods

Products that meet the specifications and standards outlined in a purchase contract.

Conforming Goods

Goods that meet the specifications and terms as stated in a contract of sale.