Which of the following statements about anti-poverty programs are generally true?
(i) they generate a very low marginal tax rate on income
(ii) they create disincentives to work
(iii) they discourage saving among recipient groups

Question

Quizplus · Accepted Answer

Anti-poverty programs often create disincentives to work because as income increases, benefits are reduced, effectively increasing the marginal tax rate on income. This can discourage work among recipients. Additionally, these programs can discourage saving because eligibility often depends on having income or assets below certain thresholds.

Which of the Following Statements About Anti-Poverty Programs Are Generally