For a person with a positive marginal utility of leisure, a cash assistance program with an implicit tax rate of -1 will lead to the following effect on work
A) The person may choose to work more or less hours depending on the income and substitution effects
B) The person will definitely work, but will work fewer hours than with a wage alone
C) The person will not choose to work
D) There is not enough information to answer the question
Correct Answer:
Verified
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