The Following Questions Refer to the information given below.
Suppose the government implements a negative income tax plan to deal with the poverty problem.The negative income tax rate is set at 50%,and the break-even level of income is set at $5,000.
-The guaranteed annual income level assured each family,regardless of the amount of income earned by the family is
A)$0
B)$1,500
C)$2,500
D)$5,000
E)$7,500

Question

Quizplus · Accepted Answer

The guaranteed annual income is calculated as 50% of the break-even level of income, which is $5,000. Therefore, 50% of $5,000 is $2,500.

The Following Questions Refer to the Information Given Below