The table given below shows the absolute tax amounts under five different tax policies for respective income levels.Table 19.2

-When a low-income individual receives a transfer payment, that individual has less of an incentive to forgo leisure time for work time.

Question

The table given below shows the absolute tax amounts under five different tax policies for respective income levels.Table 19.2
 
-When a low-income individual receives a transfer payment, that individual has less of an incentive to forgo leisure time for work time.

Quizplus · Accepted Answer

When a low-income individual receives a transfer payment, it can reduce their financial need to work and may decrease their incentive to work. This is because their income is being supplemented without having to work for it, making leisure time more attractive.

The Table Given Below Shows the Absolute Tax Amounts Under