Income Supplements Large Enough to Significantly Increase the Economic Status

question 94

Multiple Choice

Income supplements large enough to significantly increase the economic status of poor people will

• A) encourage behavior that increases the risk of poverty.
• B) create high implicit marginal tax rates that reduce the incentive of transfer recipients to earn.
• C) provide low-income recipients with a strong incentive to work and increase their earnings so they will not be dependent on income transfers.
• D) do both a and b.