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Principles of Microeconomics (Mind...

8th Edition
N. Gregory Mankiw
ISBN: 9781305971493

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BuyFindarrow_forward

Principles of Microeconomics (Mind...

8th Edition
N. Gregory Mankiw
ISBN: 9781305971493
Textbook Problem

Describe how antipoverty programs can discourage the poor from working. How might you reduce this disincentive? What are the disadvantages of your proposed policy?

To determine
The antipoverty policies discourage the poor workers.

Explanation

The antipoverty policies are the policies which are introduced by the government in order to help the poor sections of the economy for those who lie under the poverty line. Under these policies, the poor people who earn below a level of income will receive different types of financial assistances and in-kind transfers which help the people to be better off and lead a quality life.

There are many poverty alleviation programs in the economy. They all are aimed at helping the poor people in the economy but even then, there are some main policies in the economy which are firmly aimed at helping the poor. The policy of minimum wage laws, welfare, negative income tax and in-kind transfers are some of them...

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