Which of the Following Limits the Ability of the Current

question 49

Multiple Choice

Which of the following limits the ability of the current system of transfer programs to increase the incomes of the able-bodied poor?

• A) The high implicit marginal tax rates that accompany the current income transfer programs reduce the incentive of the poor to earn.
• B) The transfer programs encourage the poor to marry and form dual-earner families.
• C) The transfer programs tend to increase the wages that employers are required by law to pay for low-skill labor.
• D) The transfer programs reduce the likelihood of single-parent families.

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