Which of the Following Statements Is Correct

question 34

Multiple Choice

Which of the following statements is correct?

• A) An advantage of a minimum-wage law is that it may benefit unskilled workers who are not low-income workers.
• B) An advantage of a negative income tax program is that a poor person who chooses not to work many hours would receive a cash benefit.
• C) An advantage of an Earned Income Tax Credit (EITC)is that a person who is unable to work due to a disability does not benefit from the program.
• D) Following the reform of welfare in 1996 there was a large decrease in the welfare rolls.

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Definitions:

Price Decrease

A reduction in the monetary amount that consumers are required to pay to acquire a good or service.

Unit Sales

The total number of individual items or units that are sold within a specific period.

Traceable Fixed Expense

Fixed costs that can be directly linked to a specific segment of a business, like a product line or department.

Price Increase

An adjustment made to the selling price of goods or services, often due to factors such as inflation, increased costs of production, or improvements in quality.