Welfare Recipients Are Sometimes Faced with a Withdrawal of Welfare

Multiple Choice

Welfare recipients are sometimes faced with a withdrawal of welfare benefits and an increase in income tax as their earned income rises.This creates a problem because

A) firms become unwilling to hire people that are currently unemployed.
B) of the powerful disincentives to work for low-income individuals.
C) of the incentives for workers to shirk and/or retire early.
D) of the incentives for firms to lay off workers more frequently for short periods.
E) it is administratively difficult to track these individuals.