3 Consider three possible welfare programs. Under the first, the government gives everyone $10,000. Under the second, the government gives everyone with an income under $10,000 a payment of $10,000⫺I, where I is the recipient’s income.

Under the third program the government gives everyone with an income under

$20,000 a payment equal to $10,000⫺(.5)I. Compare how each program

(a) helps the poor,

(b) affects income inequality, and

(c) influences poor people’s incentives to work.