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:

Independent Contractors

Individuals or entities that provide services to another entity under terms specified in a contract, not classified as employees by the hiring company.

Workers

Individuals engaged in physical or mental labor, especially those employed in various sectors of an economy to perform jobs for wages.

Formal Agreement

A legally binding contract or arrangement between two or more parties, often documented in writing.

Agency Relationship

An arrangement where one party, the agent, is authorized to act on behalf of another, the principal, in business transactions.