If the Government Decided That Each Family Needs a Minimum

question 139

Multiple Choice

If the government decided that each family needs a minimum income of $25,000 and promised to make up the difference between whatever a family earned and $25,000, which of the following is correct?

• A)The government is effectively taxing every dollar earned up to $25,000 at a rate of 50%.
• B)This program doesn't change anyone's incentive to work.
• C)This program encourages people to work more in order to receive additional on-the-job training, which improves their skills.
• D)This program reduces the incentive to work to earn any wage up to $25,000.

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Definitions:

Cortisol

A steroid hormone produced by the adrenal glands that plays a role in the body's stress response, metabolism, and immune function.

Steroid Hormones

A class of hormones synthesized from cholesterol, involved in a wide range of physiological processes including the regulation of metabolism, immune response, and sexual characteristics.

Incentive Sensitization

A theory that explains how and why addiction develops, suggesting repeated exposure to an addictive substance can make the brain more sensitive to its rewarding effects.

Addiction

A compulsive engagement in rewarding stimuli despite adverse consequences, often related to substance use or certain behaviors.