The Income Reduction Hypothesis Wrongly Assumes That Public Assistance Reduces

Multiple Choice

The Income Reduction Hypothesis wrongly assumes that public assistance reduces poverty, ignoring the fact that recipients must remain poor in order to continue receiving benefits and that:

A) poor people like being poor, because it allows them to work less.
B) poor people are more motivated than other classes.
C) large amounts of income transfers go to middle class people.
D) working class people are often formerly poor.
E) poverty appears to be linked to genetics.