Which of the following statements is correct?
A)A minimum wage law will result in less additional unemployment if labor demand is elastic rather than inelastic.
B)An in-kind transfer allows a person to use the benefit to purchase whatever they think they need most.
C)If a tax policy states that taxes owed equal 1/3 of income less $15,000, a person earning $25,000 per year would owe $6,666.67 in taxes.
D)Welfare reform enacted in 1996 limited the amount of time recipients could stay on welfare.

Question

Quizplus · Accepted Answer

The other statements are incorrect. A is incorrect because a minimum wage law will result in more unemployment if labor demand is elastic rather than inelastic. B is incorrect because an in-kind transfer restricts the types of goods that can be purchased with the benefit. C is incorrect because a person earning $25,000 per year would owe $3,333.33 in taxes, not $6,666.67.

Which of the Following Statements Is Correct