A "Poverty Trap" Refers to the Situation Where

question 66

Multiple Choice

A "poverty trap" refers to the situation where

• A)low-income persons whose only income for a period of 5 or more years has been welfare benefits.
• B)tax-generated disincentives exist for middle-income persons to increase their earned income.
• C)low-income persons whose only income for a period of 2 or more years has been welfare benefits.
• D)tax-generated disincentives exist for very-low-income persons to increase their earned income.
• E)the government has imposed a negative income tax.

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Definitions:

Economic Cost

Economic cost refers to the total expenses incurred in the production of a good or service, including both explicit (monetary payments) and implicit (opportunity costs) components.

Billions

A numerical value representing one thousand million (1,000,000,000) or, in the British system, one million million (1,000,000,000,000).

Inpatient Program

A medical care plan that requires a patient to be admitted to a hospital or clinic for treatment that cannot be provided on an outpatient basis.

Length of Stay

The duration of time spent in a hospital, facility, or program, often used as a measure of healthcare efficiency and patient recovery.