7. In 1997, the Govermnent of Ontario reformed that province's welfare system. The reform reduced the amount
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7. In 1997, the Govermnent of Ontario reformed that province's welfare system. The reform reduced the amount of welfare payments to a person with no income, but also allowed welfare recipients to keep a larger part of their welfare payments if they did earn some income.
a. How does this reform affect the incentive to work?
b. How might this reform represent a tradeoff between equity and efficiency?
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Related Book For
Principles Of Macroeconomics
ISBN: 9780176591977
7th Canadian Edition
Authors: N. Mankiw, Ronald Kneebone, Kenneth McKenzie
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