Principles of Microeconomics (MindTap Course List)
8th Edition
ISBN: 9781305971493
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Question
Chapter 20, Problem 6CQQ
To determine
The impact of phase out of anti-poverty benefits when income increases.
Expert Solution & Answer
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Check out a sample textbook solutionStudents have asked these similar questions
A top challenge for government programs that seek to reduce poverty is:
Group of answer choices
A)Many people who don’t need help are getting it.
B)Overcoming the stigma associated with receiving government assistance.
C)Measuring the success of the programs.
D)That when the government phases out its support payments more slowly, the antipoverty program costs more money.
Increasing the current tax rate is likely to:
decrease the competitiveness of the state
decrease the professionals’ willingness to stay in or come to the state
cause lesser incentive to work and demotivate people
decrease productivity
What can the government do to deal with these problems?
Many government assistance programs phase-out as recipients' income increases. The government can reduce the poverty trap by having this phase-out happen
Question 25 options:
more slowly.
more quickly.
completely once the recipient earns any income at all.
there is no connection between phase-out rate and the poverty trap.
Chapter 20 Solutions
Principles of Microeconomics (MindTap Course List)
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Similar questions
- A top challenge for government programs that seek to reduce poverty is:arrow_forwardWhat is the poverty trap? Group of answer choices A)The situation where government assistance can result in a low or zero net gain for working. B)The situation where a person becomes unemployed and cannot find another job. C)The situation where a person becomes disabled and cannot work. D)The poverty trap occurs when a person is poor, and structural discrimination prevents that person from escaping poverty.arrow_forwardUsing the discussion of pay-as-you-go social security programs. explain how to derive the result that when n>r, this type of program is welfare-improving for all generationsarrow_forward
- If the benefits from an antipoverty program are phasedout as an individual’s income increases, the program willa. encourage greater work effort from the poor.b. lead to an excess supply of labor among unskilledworkers.c. cost the government more than a program thatbenefits everyone.d. increase the effective marginal tax rate that thepoor face.arrow_forwardSam is a single father with 2 children. He earns $15 per hour and can work up to 1,800 hours per year. If Sam does not earn any income at all, he receives government benefits totaling $20,000 per year. For every $1 of income he earns, his level of government support is reduced by $1. Which of the following statement best describes Sam’s situation? Group of answer choices A. He has no monetary incentive to work. B. He has a monetary incentive to work if he works more than 1800 hours. C. He has a monetary incentive to work as long as he does not exceed 1800 hours D. He has no monetary incentive to work more than 1200 hours.arrow_forwardWhich of the following statements is true? 1. Discrimination against women and blacks reduces the demand for these workers resulting in lower wages paid these workers. 2. Discrimination is no longer a problem in the United States. 3. A negative income tax system is a plan where everyone pays the same percentage of their income as taxes. 4. A negative income tax system is a plan where those below a certain income receive a cash payment from government.arrow_forward
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