Programs Associated with the Welfare State Are Believed to Cause

question 15

Multiple Choice

Programs associated with the welfare state are believed to cause deadweight loss since they:

• A)affect the amount of disposable income that households below the poverty line have to spend.
• B)affect incentives to work and to save.
• C)are supported by many political parties.
• D)are based on the ability-to-pay principle.

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