In Reference to Welfare Recipients, the High Effective Marginal Tax

question 31

Multiple Choice

In reference to welfare recipients, the high effective marginal tax rate on earnings _____.​

• A)encourages people to become self-employed
• B)encourages more labor market activity
• C)discourages self-sufficiency
• D)increases total family income if the marginal tax rate exceeds 100 percent
• E)tends to increase welfare benefits as more income is earned up to the "means-test" threshold

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Definitions:

Party Decline

The theory that political parties have become less influential and effective in political systems, particularly in guiding political action and mobilizing voters.

Grassroots Groups

are organizations that originate and operate at the local or community level, often mobilizing community members to effect change in public policy or social attitudes.

Party Bosses

Influential leaders in a political party who control votes and dictate appointments, often associated with a patronage and machine politics.

Politics

The activities associated with the governance of a country or area, especially the debate among individuals or parties seeking to achieve power.