The EITC tends to
A)increase employment just like the minimum wage does.
B)decrease employment just like the minimum wage does.
C)increase employment whereas the minimum wage decreases employment.
D)decrease employment whereas the minimum wage increase employment.

Question

Quizplus · Accepted Answer

The EITC (Earned Income Tax Credit) is a refundable tax credit that supplements the income of low-wage workers, whereas the minimum wage is a mandatory wage floor that employers must pay their workers. Studies have shown that the EITC tends to increase employment among low-wage workers, while the minimum wage can lead to job loss or reduced employment opportunities for those workers. Therefore, the EITC tends to increase employment whereas the minimum wage decreases employment.

The EITC Tends to