The Following Questions Refer to the Information Given Below

question 65

Multiple Choice

The Following Questions Refer to the information given below.
Suppose the government implements a negative income tax plan to deal with the poverty problem.The negative income tax rate is set at 50%,and the break-even level of income is set at $5,000.
-If a family earns $2,000 income,their negative income tax subsidy will be

• A)$0
• B)$1,500
• C)$2,500
• D)$5,000
• E)$7,500

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Definitions:

Predetermined Classifications

Pre-established categories used to sort or organize individuals or items based on specific criteria.

External Equity

The concept of ensuring compensation and benefits offered are competitive with those in the external job market to attract and retain talent.

Pay Equity

The principle of compensating employees equally for jobs requiring comparable skills, effort, and responsibility, without discrimination on the basis of gender, ethnicity, or other irrelevant factors.

Internal Equity

The practice of ensuring fairness and consistency in pay structures for employees within an organization, based on their roles, experience, and performance.