The breakeven level of income equals the
A)Minimum amount of income society considers desirable for households to have.
B)Amount of income a family may earn without losing any welfare benefits.
C)Need standard with a marginal tax rate of zero percent.
D)The highest level of income at which a household ceases to receive welfare benefits.
Higher breakeven levels of income can be achieved by decreasing
D)The marginal tax rate.
Welfare costs can be reduced by
A)Decreasing the breakeven level of income.
B)Reducing the marginal tax rate.
C)Increasing earnings disregards.
D)Decreasing the tax elasticity of labor supply.
Suppose a poverty program has a basic benefit of $5,000 with zero deductions,and a marginal tax rate of 0.50.The breakeven level of income is