An Advantage of Replacing All Income-Support Programs with a Negative

question 23

Multiple Choice

An advantage of replacing all income-support programs with a negative income tax is that

• A)It discourages low-income workers from working more
• B)Households with income above the poverty threshold pay positive taxes
• C)It is more difficult to administer than other antipoverty programs
• D)Households lose benefits when they choose to work
• E)All of the above

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Definitions:

Contestable Markets Model

An economic concept suggesting that a market is competitive if entry and exit costs are low, even if it is dominated by a few firms.

Oligopoly

A market structure characterized by a small number of large firms dominating the industry, leading to limited competition and potential for collaboration in setting prices.

Differentiate Products

Strategies employed by businesses to make their products stand out from those of competitors, such as through quality, design, or features.

Oligopolies

Market structures characterized by a small number of firms dominating the market, leading to reduced competition.