The Head of a Low-Income Family Is Given the Opportunity

question 17

Multiple Choice

The head of a low-income family is given the opportunity to earn extra money for the household by working additional hours full time. However, the boost to household income is reduced by an increase in income tax and health insurance deductibles. This is an example of ______.

• A) a poverty trap
• B) conflicting ideologies
• C) a welfare trap
• D) extractive institutions

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Definitions:

Adequacy

The quality or state of being sufficient, suitable, or appropriate for a particular purpose.

Consideration

Something of value exchanged between parties in a contract, required for the agreement to be legally binding.

Legally Sufficient Consideration

An element of contract law that requires something of value to be exchanged between the parties involved.

Consideration

Something of value (such as money, services, or goods) that is exchanged between parties in a contract, rendering the agreement legally binding.