Figure 21-1
-In Figure 21-1, if the existing antipoverty program were replaced by a negative income tax, most economists believe that it would result in a move like which of the following?

Question

Figure 21-1 
-In Figure 21-1, if the existing antipoverty program were replaced by a negative income tax, most economists believe that it would result in a move like which of the following?

Quizplus · Accepted Answer

A negative income tax would provide income support for individuals and families with low income, which would result in an increase in their income level. This would shift the entire income distribution curve upwards, resulting in a move from point C to F.

Figure 21-1 -In Figure 21-1, If the Existing Antipoverty Program Were Replaced