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  1. Topics
  2. Business
  3. Principles of Economics Study Set 4
  4. Quiz 12: Labor Markets, Poverty, and Income Distribution

According to the Textbook,the Best Possible Solution to the Problem

Question 143
Multiple Choice

According to the textbook,the best possible solution to the problem of poverty would seem to be A)a combination of a negative income tax and public employment. B)maintaining the current system. C)a negative income tax with the tax credit equal to the poverty threshold. D)complete elimination of all efforts to assist the poor.

Related questions
Q 140
The Earned Income Tax Credit program operates like a(n) A)tax on wages. B)lump sum transfer. C)wage subsidy. D)in-kind transfer.
Q 141
Unlike the minimum wage,the Earned Income Tax Credit does not A)cause low-wage workers to be laid off. B)cost the government anything. C)improve the status of the working poor. D)maintain the proper incentives to work.
Q 142
To completely eliminate the concern about public assistance reducing the poor's incentive to work,the government could A)provide training assistance rather than cash or in-kind transfers. B)give churches and nonprofit organization the responsibility for administering the programs. C)give everyone a fixed cash transfer. D)give the assistance as wages in exchange for public sector employment.
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