An EITC Program Is More Likely to Encourage Working When

question 17

Multiple Choice

An EITC program is more likely to encourage working when compared to NIT program because:

• A)participants are guaranteed income even if they are not working.
• B)participants must work to receive benefits.
• C)participants are eligible for work training.
• D)participants receive a wage rate subsidy.

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Definitions:

Tax Rate

The rate at which a person or company is charged by the government on their earnings or gains.

Equivalent Annual Cost

A financial metric used to compare the cost-effectiveness of different investments with different lifespans or costs.

Net Working Capital

The gap between a business's current assets and its current liabilities, showcasing the firm's liquidity.

Capital Cost Allowance (CCA)

The Capital Cost Allowance (CCA) is a tax deduction available in Canada that represents a yearly depreciation charge for capital assets used in business activities, allowing businesses to write off the cost of assets over time.