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In Terms of Improving the Standard of Living of the Poor

Question 137

Multiple Choice

In terms of improving the standard of living of the poor, one drawback on the earned income tax credit (EITC) is that:


A) it provides workers with in-kind transfers.
B) it's only available to individuals whose incomes are above a certain threshold.
C) it provides no benefits to people who are unemployed.
D) it gives firms a strong incentive to lay off low-wage workers.

Correct Answer:

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