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.

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Definitions:

Unconscionable

Refers to an agreement or term within an agreement that is excessively unfair, oppressive, or unreasonable to one of the parties, often to the extent that it violates public policy.

Punitive Damages

Monetary compensation awarded to an injured party that goes beyond what is necessary to compensate for losses and is intended to punish the wrongdoer.

Arbitration

A method of resolving disputes outside of court through the decision of one or more arbitrators.

Exculpatory Clause

A contract provision that releases one party from liability for their wrongful acts to the other party.