Multiple Choice
Which of the following methods have been used to reduce the disincentive effects of welfare on labor supply?
I. The government reduces welfare benefits by $1 of every $1 of labor income earned.
II. The government limits the amount of time that someone can collect welfare.
III. The government provides an Earned Income Tax Credit that supplements the income of the working poor.
A) I and III only
B) II and III only
C) II only
D) I, II, and III
Correct Answer:

Verified
Correct Answer:
Verified
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