What Would Be the Most Effective Way of Fighting Poverty,now

question 78

Multiple Choice

What would be the most effective way of fighting poverty,now that millions of welfare mothers have found work?

• A)Raise welfare payments
• B)Lower welfare payments
• C)Expand the earned income tax credit
• D)Force the rest of the welfare mothers off welfare

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Definitions:

Interest-Rate Cost

The cost associated with borrowing funds, typically expressed as a percentage of the total amount loaned.

Expected Rate

Expected rate often refers to the anticipated return on an investment or the predicted growth rate of an economic variable over a certain period.

Optimal Amount

The most efficient, beneficial, or ideal quantity of a good, service, or resource allocation under given circumstances.

Perfectly Elastic

Describes a situation in economics where the quantity demanded or supplied changes infinitely in response to any change in price.