With a Negative Income Tax Providing a Minimum of $20,000

question 87

Multiple Choice

With a negative income tax providing a minimum of $20,000 and a tax rate of 25 percent, what amount of supplement would the government pay to a household earning $10,000?

• A)$5,000
• B)$10,000
• C)$17,500
• D)$20,000

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Definitions:

Stanley Milgram

A psychologist best known for his groundbreaking studies on obedience, demonstrating people's willingness to follow authority figures' orders, even to the extent of harming others.

Obedience

The act of following the directions or commands of a person in authority.

Persuasion

The act or process of influencing someone's beliefs, attitudes, or behaviors through communication, argument, or appeal.

Attraction

The interest, desire, or force that draws people together, which can be based on physical appearance, personality, or a range of other factors.