In the Negative Income Tax Framework, a Break-Even Point of $16,000

question 8

Multiple Choice

In the negative income tax framework, a break-even point of $16,000 and a tax rate of 25 percent imply a guarantee of which of the following figures?

• A)$4,000
• B)$8,000
• C)$12,000
• D)$16,000

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Definitions:

Unanimity

Complete agreement among all members or participants in a particular decision or vote.

Voting Structure

The method or system used to carry out the process of voting or making decisions within an organization or a country.

Economic Efficiency

The optimal distribution of resources in a society, minimizing waste and maximizing value.

Government Failure

A situation in which the structure of incentives is such that the political process, including democratic political decision-making, will encourage individuals to undertake actions that conflict with economic efficiency.