The EITC Was Enacted in 1975 to Encourage

question 6

Multiple Choice

The EITC was enacted in 1975 to encourage

• A)businesses to hire the poor.
• B)women to work.
• C)businesses to hire women.
• D)the poor to work.

Evaluate arguments for and against redistributing income and wealth, considering economic efficiency and ethical considerations.

Understand the role and impact of government tax and transfer programs on income distribution and poverty in the United States.

Identify and describe the major government programs that affect income distribution, including Social Security, agriculture subsidies, and the Earned Income Tax Credit.

Analyze the definition and measurement of poverty, including the poverty threshold and the official poverty rate.

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Definitions:

Market Risk Factor

Elements or variables that affect the performance of investments in the stock market, such as economic developments or changes in interest rates.

Common Stock

A form of corporate equity ownership, representing a share in the ownership of a company and a claim on a part of its profits.

Treasury Bills

Treasury bills are short-term government securities issued at a discount from the face value and mature at par, used by governments to raise funds to meet short-term financial needs.