Which of the Following Is Not Correct

question 174

Multiple Choice

Which of the following is not correct?

• A)A negative income tax only applies to working people, so it encourages people to get full-time work.
• B)Supporters advocate the use of the Earned Income Tax Credit as a way to help the working poor.
• C)A negative income tax subsidizes the incomes of poor people.
• D)An advantage of a negative income tax is that it is not based on the number of children, so it does not provide incentives for unmarried women to have children.

---

Definitions:

Short Run

A period in economics where at least one input is fixed and cannot be changed.

Long Run

A period of time in economics during which all factors of production and costs are variable, allowing for full adjustment to changes.

Allocative Efficiency

A condition where resources are distributed according to consumer preferences, optimizing utility for both producers and consumers.

Production

The process of creating goods or services by combining various inputs like labor, materials, and technology.