The welfare program economists believe to be most compatible with economic efficiency is

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Economists believe that a negative income tax is the most compatible with economic efficiency because it provides an incentive for work, as every additional dollar earned reduces the amount of benefit received. This reduces the "welfare trap" where people are discouraged from working more because it would mean losing benefits. A regressive tax system, AFDC, and Medicare/Medicaid are not necessarily compatible with economic efficiency, as they may not provide the same incentives for work and may not target assistance to those who need it most.

The Welfare Program Economists Believe to Be Most Compatible with Economic