Multiple Choice
Under a guaranteed minimum annual income plan,if the minimum income level is $5000 with a benefit-reduction rate of 50 percent,the earnings level at which benefits (transfer payments) would be zero is:
A) $2500.
B) $5000.
C) $8000.
D) $10,000.
The worker is guaranteed an income of $5000.If the worker made $10,000,he would have 50 percent of the earned income taken away.This means the guaranteed income disappears.
Correct Answer:
Verified
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