A Government Program Guarantees $18,000 in Income, Even for Those

question 48

Multiple Choice

A government program guarantees $18,000 in income, even for those who do not work at all. If the recipient earns income by working, then the $18,000 benefit is reduced by 50 cents for each
$1 earned. Will this program eliminate the poverty trap?

• A) Yes, enacting such a program will eliminate the poverty trap.
• B) No, enacting such a program may still reduce the incentive to work.
• C) Yes, and enacting such a program will cost the government less money.
• D) Yes, enacting such a program will create adequate incentive to work.

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Definitions:

Air Force

A branch of a nation's armed forces that is responsible for aerial warfare and air defense.

GI Bill

A law passed in 1944 providing a range of benefits for returning World War II veterans, including funding for education and home buying.

Atomic Bomb

A weapon of mass destruction that uses nuclear reactions, either fission or a combination of fission and fusion, to release a vast amount of energy, resulting in explosive and destructive force.

Hiroshima

A Japanese city known for being the target of the first atomic bomb used in warfare, dropped by the United States on August 6, 1945, during World War II.