Which of the Following Is Not a Characteristic of the Earned

question 71

Multiple Choice

Which of the following is not a characteristic of the Earned Income Tax Credit (EITC) ?

• A)It does not discourage recipients from working.
• B)It is less distortionary than other anti-poverty programs.
• C)It helps the disabled who cannot work.
• D)It applies only to the working poor.

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Definitions:

Market Rate

The prevailing interest rate available in the marketplace for instruments of similar risk and maturity.

Down Payment

An initial payment made when something is bought on credit.

Successful-efforts Method

An accounting method used in the oil and gas industry where costs are capitalized only if successful discoveries are made.

Full-cost Method

Accounting practice where all direct and indirect fixed and variable costs are allocated to inventory until the products are sold.