Which of the Following Must Be TRUE for an Ordeal

question 30

Multiple Choice

Which of the following must be TRUE for an ordeal mechanism to be effective?

• A) The disincentive to work from taxing the high-income individuals must be minimized.
• B) The disincentive to work for welfare recipients must be less than the additional social welfare received from making them better off.
• C) The gains from the program to welfare recipients must exceed the cost imposed on welfare recipients.
• D) The cost imposed on welfare recipients must be equal to zero.

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Definitions:

Illegal Immigration

The act of moving to a country in violation of its immigration laws.

Average Level

Typically refers to the common or midpoint value in a set of data, calculated by dividing the sum of all values by the number of values.

Legal Immigration

The process through which individuals relocate to another country in accordance with the host country's laws and regulations.

Amnesty Program

A governmental initiative that grants legal forgiveness for individuals who have committed certain offenses, often related to immigration or taxes, permitting them to rectify their status or reduce penalties.