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The Difference Between a Conventional Welfare Program and a Negative

Question 3

Multiple Choice

The difference between a conventional welfare program and a negative income tax program is that:


A) Individuals have to be living below the poverty line in order to qualify for the negative income tax program.
B) For the negative income tax program, the benefits received have to be repaid once the worker is working full time for wages.
C) The former type of program is transferred to the recipient by the government, while the latter is taxed away from the recipient by the government.
D) Recipients in the negative income tax program will receive more from the guarantee income than they will pay out in taxes.
E) For the negative income tax program, the worker receives a wage supplement for each hour that he/she works.

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