1.Consider a negative income tax policy which has a guaranteed income floor of $8,000 and a tax rate of 40 percent.A family earning $10,000 in labor income would have a total annual income of:

Group of answer choices

a) $18,000

b) $14,000

c) $7,200

d) $8,000

When looking at outcomes in Germany, a policy that many improve incomes among lower percentile workers in the U.S. would be:

Group of answer choices

a) Lowering the minimum wage and the earned income tax credit

b) Putting greater emphasis on vocational training

c) Moving more high school students into curricula designed for preparing them for higher education

d) Requiring employers to provide more benefits to workers when they switch jobs

3.The Gini coefficient for a developing country moved from .30 to .50 between 1960 and 1995.We can therefore conclude that:

Group of answer choices

a) there is greater income inequality in 1995 than in 1960

b) capital has been receiving a growing share of this country's income

c) there is less poverty in 1995 than in 1960

d) the distribution of income became more equal during this time