Tim Hughes Works at an Institutional Bakery and Is Paid

question 203

Multiple Choice

Tim Hughes works at an institutional bakery and is paid a wage dictated by the government.He does not like his job but is not allowed other options.Tim must purchase necessities for his family at fixed prices.The country Tim lives in can be described as a ____ economy.

• A) demand
• B) command
• C) market
• D) free-enterprise
• E) capitalist

---

Definitions:

Income Subsidy

An income subsidy is a government-provided financial assistance program intended to boost an individual's income to a level sufficient for meeting basic living standards.

Negative Income Tax

A program where the government provides additional income to those who earn under a specific threshold, rather than collecting taxes from them.

Tax Liability

Tax liability is the total amount of tax that an individual or organization is legally obligated to pay to a taxing authority based on earnings, property ownership, or other taxable conditions.

Earned Income Tax Credit

A tax credit in the United States designed to benefit individuals and families with low to moderate incomes, effectively reducing the amount of tax owed and possibly resulting in a refund.