Which of the following effects creates an incentive for poor workers to reduce their hours of work when they receive cash assistance?
A)Income
B)Substitution
C)Lorenz
D)Supply
E)Welfare

Question

Quizplus · Accepted Answer

The income effect suggests that as individuals receive cash assistance, they may feel less pressure to work additional hours since their overall income has increased, allowing them to maintain their desired standard of living with fewer work hours.

Which of the Following Effects Creates an Incentive for Poor