In Reference to Welfare Recipients, the High Effective Marginal Tax

Multiple Choice

In reference to welfare recipients, the high effective marginal tax rate on earnings

A) encourages self-sufficiency
B) encourages more labor market activity
C) discourages employment
D) increases total family income if the marginal tax rate exceeds 100 percent
E) tends to increase welfare benefits as more income is earned up to the "means-test" threshold