--%>

Low marginal tax with basic income

In a negative income tax system, where a combining fundamental income floor with low marginal tax rates gives in: (w) reduced incentives for “voluntary poverty.” (x) higher minimal standards of living for the poor. (y) an NIT program more costly than the current “welfare mess.” (z) a growing proportion of the population on welfare.

Can anybody suggest me the proper explanation for given problem regarding Economics generally?

   Related Questions in Microeconomics

  • Q : Consumers and corrupt governmental

    I have a problem in economics on Consumers and corrupt governmental processes. Please help me in the following question. John Kenneth Galbraith believes that the big corporations: (1) Must be broken up to the foster competition. (2) Manipulate the con

  • Q : Imposition of price ceilings The

    The imposition of price ceilings which are below equilibrium generally results within: (w) shortages and net decreases in economic efficiency. (x) more efficient allocations of scarce resources. (y) greater consumer satisfaction and b

  • Q : Prices decrement in price elasticity of

    When animal rights activists persuade several fur coat buyers to switch to micro-fiber jackets as well as pelt prices decrease from $150 to $50 each, resultant in the baby seal harvest decreasing from 18,000 to 6,000 yearly, in that case the price elasticity

  • Q : Under negative income tax the net income

    Under the negative income tax system demonstrated in this figure, where a family of four all along with earned income of $60,000 yearly would have a net [after-tax] income of: (1) $37,500 per year. (2) $42,500 per year. (3) $50,000 per year. (4) $55,0

  • Q : When is short run profit maximized

    Short-run profit is maximized only while: (w) economic profit > accounting profit. (x) total cost = total revenue. (y) MC = MR (greater than minimum AVC). (z) costs are minimum or revenue is maximum. How can I s

  • Q : Profit-maximizing monopolistically

    A profit-maximizing monopolistically competitive firm will operate where is: (w) MR > MC. (x) MR = MC. (y) P < MR. (z) P < MC. Can anybody suggest me the proper explanation for given problem regarding

  • Q : Strategy of labor union goals The

    The strategy most probable to outcome the maximum wages and employment and the greatest economic clout for all the workers over long run would be for the union to: (1) Restrict entry to a specific occupation. (2) Boycott non-unionized firms which compete with the unio

  • Q : Market hypotheses Efficient market

    Efficient market hypotheses:a) Weak-form efficient market hypothesis: It assumes that current stock prices reflect all security market information including the historical sequence of prices, rates of return, trad

  • Q : Market form-product distinguishing In

    In which market form, the products are distinguished. Answer: In Monopolistic competition

  • Q : Problem related to aggregate demand

    Refer to the below diagram, in which Qf is the full-employment output. If aggregate demand curve AD1 describes the current situation, appropriate fiscal policy would be to: A) increase taxes and reduce government spending to shift the aggregate d