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(I) High Implicit Marginal Tax Rates Reduce the Incentive of the Poor

Question 124

Multiple Choice

(I) High implicit marginal tax rates reduce the incentive of the poor to earn. (II) The Samaritan's dilemma is that transfer programs lower the opportunity cost of activities that lead to poverty.


A) Both I and II are true.
B) Both I and II are false.
C) I is true; II is false.
D) II is true; I is false.

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