Which of the Following Statements Is Correct

question 98

Multiple Choice

Which of the following statements is correct?

• A) An disadvantage of Supplemental Security Income (SSI)is that it does not encourage families to break up in order to qualify for assistance.
• B) A disadvantage of in-kind transfer programs such as food stamps is that they force recipients to purchase from a restricted set of items which may not include things that the poor need the most such as diapers or cleaning supplies.
• C) A disadvantage of minimum wage laws is that they are expensive for state and local governments to fund.
• D) An advantage of a negative income tax is that it encourages the poor to work in order to receive government assistance.

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Definitions:

Oil Imports

The purchase of petroleum from foreign countries, essential for economies that consume more oil than they produce domestically.

Comparative Advantage

is the economic theory that a country should specialize in producing and exporting goods and services for which it has the lowest opportunity cost.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision.

Marginal Costs

The additional cost incurred when producing one more unit of a particular good or service.