Which of the Following Statements About the Earned Income Tax

question 190

Multiple Choice

Which of the following statements about the Earned Income Tax Credit Program (EITC) program is FALSE?

• A) On net the EITC discourages work by low- or moderate- income earners more than it rewards work.
• B) It provides rebates of Social Security taxes to low-income workers.
• C) Recipients who receive benefit payments under Social Security are also eligible for SSI.
• D) It is the largest poverty reduction program in the U.S..

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Definitions:

Equilibrium Price

The sale price at which the supply of goods precisely meets the demand in the market.

Fine

A monetary penalty imposed by an authority on individuals or entities as punishment for an offense or infraction.

Supply Curve

A graphical representation of the relationship between the price of a good and the quantity of the good that suppliers are willing to sell.

Total Variable Costs

The sum of expenses that vary directly with the level of production or output, including costs for materials and labor.