Data Indicate That the Large Increase in Government Spending on Income
Data indicate that the large increase in government spending on income transfers that started with the War on Poverty during the latter half of the 1960s has resulted in
A)a substantial reduction in the poverty rate.
B)a more equal distribution of income.
C)fewer single-parent families because a married couple receives benefits twice as large.
D)little change in the official poverty rate.
Poor people,who receive income assistance from the government,often do not work because
A)they face very high implicit marginal tax rates.
B)they are usually not physically able to work.
C)they have no desire for additional money.
D)the government forces them to stay at home and take care of their children.
Income supplements large enough to significantly increase the economic status of poor people will
A)encourage behavior that increases the risk of poverty.
B)create high implicit marginal tax rates that reduce the incentive of transfer recipients to earn.
C)provide low-income recipients with a strong incentive to work and increase their earnings so they will not be dependent on income transfers.
D)do both a and b.
Assume that Jill is a single parent who is in poverty.She receives food stamps and Medicaid.For every $100 that she earns,Jill loses $20 of her food stamp benefits and $15 in her Medicaid benefits.Jill's implicit marginal tax rate from these two programs is