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Use the Following Formula to Answer the Indicated Question: Welfare

Question 58

Multiple Choice

Use the following formula to answer the indicated question: Welfare benefit = Maximum benefit - 0.4 [Wages - (Work expenses + Child care costs) ]
Based on the information given,the marginal tax rate is


A) Zero percent.
B) 40 percent.
C) 60 percent.

Correct Answer:

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