Because the Benefits Paid by Most Universal Programs Are Taxable

question 95

Multiple Choice

Because the benefits paid by most universal programs are taxable, their net after- tax yield depends on the income of the recipient. Hence

• A) only higher- income households can benefit fully from such programs.
• B) gross payments may not be universal, and net benefits are not.
• C) gross payments may be universal, but net benefits are not.
• D) gross payments may not be universal, but net benefits are.
• E) gross payments and net benefits are universal.

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Definitions:

Ultimate Attribution Error

A bias in which negative behaviors by out-group members are attributed to their character, while similar actions by in-group members are attributed to situational factors.

Law Of Small Numbers

A cognitive bias where people infer broader conclusions from a small set of observations than is statistically warranted.

Bias

A tendency to lean in a certain direction, often to the detriment of an open mind, leading to partial judgment or prejudice.

SDO Individuals

Individuals high in Social Dominance Orientation, a personality trait characterized by a preference for inequality among social groups.