Which of the following is an unintended consequence of welfare?
a. A low marginal tax rate on earned income for welfare recipients.
b. A reduced incentive to leave welfare if more benefits are lost when income begins to be earned.
c. A lower probability that children of families on welfare will themselves receive welfare.
d. A welfare recipient becomes more productive, increasing the expected wage.
b
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Openness and change in the economic models of India and China have meant for the world economy all of the following EXCEPT
A) hundreds of millions of people have escaped poverty. B) many manufactured goods and services have become cheaper. C) forced some firms to downsize, offshore or otherwise change business practices. D) increased the market power of firms in industrialized countries as they gained most from this evolving trade.
A consumer's optimal choice is affected by income, prices of goods, and preferences
a. True b. False Indicate whether the statement is true or false