Anti-poverty programs
A)encourage saving among recipient groups.
B)impose a very low marginal tax rate on income.
C)are only made available to those with no other source of income.
D)may discourage the poor from escaping poverty on their own.

Question

Quizplus · Accepted Answer

Anti-poverty programs may inadvertently discourage the poor from escaping poverty on their own by providing a safety net that can reduce their incentive to work and earn more income. This is known as the "welfare trap" or "poverty trap." However, there is ongoing debate about whether anti-poverty programs actually have this effect, and some argue that they can provide a necessary lifeline for vulnerable populations.

Anti-Poverty Programs