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A Disadvantage Associated with an Earned Income Tax Credit (EITC)

Question 100

Multiple Choice

A disadvantage associated with an Earned Income Tax Credit (EITC) program to reduce poverty is that it


A) encourages illegitimate births because single women with children receive higher payments.
B) rewards laziness because it provides payments to those with low incomes regardless of their work effort.
C) does not help the poor who are unemployed.
D) creates unemployment by increasing the wage paid to unskilled workers above the equilibrium wage.

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