Welfare Recipients Are Sometimes Faced with a Withdrawal of Welfare

question 50

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

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Definitions:

Mission

The statement of an organization's fundamental purpose and basic philosophy.