An Implicit Tax Rate of 100 Percent on Additional Earnings

question 2

Multiple Choice

An implicit tax rate of 100 percent on additional earnings for social assistance recipients not working, which represents a disincentive to enter the labour force, is referred to as

• A)a welfare wall.
• B)a negative income tax.
• C)a negative work incentive.
• D)welfare dependence.

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Definitions:

British

Pertaining to the United Kingdom or its people, culture, and traditions, including elements related to England, Scotland, Wales, and Northern Ireland.

Colonists

Individuals who settle in a new land or territory but maintain affiliations with their country of origin, often establishing colonies.

Increased Taxes

A fiscal policy action where the government raises the taxes levied on income, goods, services, or transactions to generate additional revenue.

Parliament

The supreme legislative body in many countries, comprised of elected representatives who have the authority to make or change laws.