Suppose a welfare recipient is given a cash grant that increases his monthly income.That grant will never be taken away no matter how much the recipient earns.The grant will result in a(n):

Question

Quizplus · Accepted Answer

The cash grant increases the recipient's income, leading to an income effect that may reduce the incentive to work, as the recipient can maintain a similar standard of living with less work.

Suppose a Welfare Recipient Is Given a Cash Grant That