If the Government Decided That Each Family Needs a Minimum

question 218

Multiple Choice

If the government decided that each family needs a minimum income of $25,000 and promised to make up the difference between whatever a family earned and $25,000, which of the following is correct?

• A)The government is effectively taxing every dollar earned up to $25,000 at a rate of 100%.
• B)This program would reduce the incentive to work to earn any wage up to $25,000.
• C)If workers are discouraged from working due to this program, they will miss any on-the-job training that would have otherwise occurred, limiting their ability to improve their skills.
• D)All of the above are correct.

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Definitions:

Graze Cattle

The process of feeding cattle by allowing them to roam and eat grass or other ground vegetation.

Agree

To have the same opinion about something or to consent to a proposal or view.

Interest Rate

The percentage at which interest is paid by a borrower for the use of money they borrow from a lender.

End of Year

A point in time marking the completion of a 12-month period, often used for accounting and evaluating annual performance.