Which of the Following Statements Concerning the Work Incentive (Or

question 12

Multiple Choice

Which of the following statements concerning the work incentive (or disincentive) effects under a wage subsidy program and under a negative income tax program is true?

• A) The wage subsidy program has a greater positive effect on the incentive to work.
• B) Both these programs have the same effects in this regard.
• C) The negative income tax program is neutral in regards to these effects.
• D) The negative income tax program has a greater positive effect on the incentive to work.
• E) The wage subsidy program is neutral in regards to these effects.

---

Definitions:

Business-to-Business

Commercial transactions or relationships between two businesses, rather than between a company and individual consumers.

Marketing

Marketing encompasses the activities, strategies, and processes used to promote and sell products or services, including market research, advertising, distribution, and customer relationship management, aiming to satisfy customer needs and achieve business objectives.

Business-to-Government

Transactions conducted between companies and governmental bodies.

Consumer-to-Consumer

A type of commerce where private individuals trade goods, services, or information directly with each other, often facilitated by a third-party platform.