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    The Economy Today Study Set 1
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    Exam 34: Transfer Payments: Welfare and Social Security
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    If Welfare Benefits Equal the Poverty Gap for Each Household
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If Welfare Benefits Equal the Poverty Gap for Each Household

Question 32

Question 32

Multiple Choice

If welfare benefits equal the poverty gap for each household in poverty,then the


A) Effective marginal tax rate for welfare recipients is 100 percent.
B) Poor have a strong incentive to begin working.
C) The poverty gap will become greater.

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