8. The government is considering three possible welfare programs: a. Give each low-income household $10,000. b. Give
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8. The government is considering three possible welfare programs:
a. Give each low-income household $10,000.
b. Give each low-income household $20,000 minus the recipient’s income.
c. Match the income of each low-income household, where the maximum they can receive in benefi ts is capped at $10,000.
Which program does the most to help the poor? Describe the work incentives under each program.
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