The long-run supply curve is upward sloping in a(n)

Which of the following is a difference between a corrective tax and a corrective subsidy?

a. A corrective tax leads a market to allocative efficiency, while a corrective subsidy does not lead to allocative efficiency. b. A corrective tax eliminates deadweight loss, while a corrective subsidy does not eliminate deadweight loss. c. A corrective tax is useful in the case of negative externalities, while a corrective subsidy is useful in the case of positive externalities. d. A corrective tax operates by decreasing the private cost of production, while a corrective subsidy operates by decreasing the private benefit of consumption.

The Earned Income Tax Credit

a. tends to increase income inequality. b. is a program that provides additional income to workers with above-average incomes. c. tends to reduce income inequality. d. is both a and b.