With a negative income tax, the larger the difference between the break-even income level and the guaranteed level,

a. the greater the tax rate (by definition).
b. the greater the incentive to work.
c. the smaller the number of people eligible to receive benefits.
d. the more inequitable the resulting distribution of income will be.

b

Economics

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The presence of a positive externality in a market leads to ________

A) an underproduction of the good B) an overproduction of the good C) a deadweight loss D) a fall in the consumer surplus

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