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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Principles Of Microeconomics

ISBN: 9780393935769

1st Edition

Authors: Dirk Mateer, Lee Coppock

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