If the Government Decided That Each Family Needs a Minimum

question 218

Multiple Choice

If the government decided that each family needs a minimum income of $25,000 and promised to make up the difference between whatever a family earned and $25,000, which of the following is correct?

• A)The government is effectively taxing every dollar earned up to $25,000 at a rate of 100%.
• B)This program would reduce the incentive to work to earn any wage up to $25,000.
• C)If workers are discouraged from working due to this program, they will miss any on-the-job training that would have otherwise occurred, limiting their ability to improve their skills.
• D)All of the above are correct.