Figure 11-1

-In the middle of a severe recession, Congress passes an increase in the level of unemployment benefits.This would be considered by economists as a
A)positive tax.
B)negative tax.
C)form of government purchases.
D)variable tax.

Question

Figure 11-1
​ 
-In the middle of a severe recession, Congress passes an increase in the level of unemployment benefits.This would be considered by economists as a
A)positive tax. 
B)negative tax. 
C)form of government purchases. 
D)variable tax.

Quizplus · Accepted Answer

This would be considered a negative tax because it reduces the tax burden on those who are unemployed and provides them with financial assistance.

Figure 11-1 ​

Figure 11-1