(Consider This) the Main Problem with Welfare Cliffs Is That

question 122

Multiple Choice

(Consider This) The main problem with welfare cliffs is that they

• A) discourage welfare recipients from moving into higher paying jobs and ultimately becoming self-sufficient.
• B) cause dramatic increases in government spending at times when tax revenues are falling.
• C) occur randomly, further destabilizing the lives of recipients who are suddenly cut off.
• D) significantly increase the number of people receiving welfare.

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Definitions:

Variable Cost

Expenses that vary in relation to the amount of product or service generated by a company.

Sales Price

The final amount of money charged for a product or service, or the value that consumers are willing to pay.

Optimal Point

The most favorable position or condition that yields the maximum benefit or efficiency in a given situation, such as in investment or production.

Credit Policy

Rules a business adheres to for assessing a customer's eligibility for credit and the stipulations under which it is offered.