Assume That Peter Is a Single Parent Who Is in Poverty

question 105

Multiple Choice

Assume that Peter is a single parent who is in poverty. He receives food stamps and Medicaid. For every $100 that he earns, Peter loses $35 in food stamps and $20 in Medicaid benefits. Also, Peter's income is taxed at a rate of 10%. Then, Peter's total tax rate is

• A) 45 percent
• B) 55 percent
• C) 65 percent
• D) 70 percent

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Definitions:

Public Sector

The part of the economy composed of government services and enterprises, including education, healthcare, and law enforcement.

Labor Unions

Organizations formed by workers from related fields to work collectively towards securing better working conditions, wages, and other employment benefits.

Collective Bargaining

The process by which labor unions negotiate with employers to reach agreement on wages, work conditions, and benefits.

Taft-Hartley Act

A 1947 United States federal law that restricts the activities and power of labor unions.