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:

Statistics Canada

The national statistical office of Canada, responsible for producing statistics on Canada's population, economy, society, and environment.

Circadian Rhythms

Biological cycles that occur on a roughly 24-hour basis, regulating various physiological processes such as sleep-wake cycles, hormone release, and body temperature.

Spacecraft

A spacecraft is a vehicle designed for travel or operation in outer space, ranging from satellites and probes to shuttles and space stations.

Sleepy

A state of feeling tired or drowsy, often leading to a desire for sleep.