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Part (a) What is a negative income tax? Part (b) Draw an income-leisure graph to show the impact of a negative income tax scheme on
Part (a)What is a negative income tax?
Part (b)Draw an income-leisure graph to show the impact of a negative income tax scheme on labour force participation.
Part (c)Does the imposition of a negative income tax reduce work incentives? Explain briefly
Part (d)In your opinion, should the government introduce such as policy? Why or why not with 1 or 2 arguments for or against).
Use at lease one to three sentences for part c &d
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