Exhibit 12-7 Negative income tax
-As shown in Exhibit 12-7, a family of four with no earned income receives ____ from the government.

Question

Exhibit 12-7 Negative income tax 
-As shown in Exhibit 12-7, a family of four with no earned income receives ____ from the government.

Quizplus · Accepted Answer

According to Exhibit 12-7, a family of four with no earned income receives a $20,000 payment from the government through a negative income tax. Therefore, option C is correct. Options A and B are incorrect because the family receives a payment, not zero or a break-even income. Option D is also incorrect because the family receives a payment, not a tax deferment.

Exhibit 12-7 Negative Income Tax