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Again, suppose the government introduces a welfare program in which any individual with an income of less than $43,275 receives a lump-sum transfer payment of
Again, suppose the government introduces a welfare program in which any individual with an income of less than $43,275 receives a lump-sum transfer payment of $7,000 from the government. Caroline, a resident of Perkopia who currently earns an income of $42,474, has the opportunity to work overtime and earn an additional $1,500 this year. Which of the following statements are correct? Check all that apply. Caroline may accept the overtime if she feels that taking it will increase the chances of her receiving a significant promotion. The $7,000 in aid presents a disincentive for Caroline to make more than $43,275 per year. Caroline would gain more income by turning down the overtime than she would if she accepted the overtime
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