For someone who is not working at all without the Earned Income Tax Credit (EITC),which statement is true when the person is subject to the EITC,once he starts working?

Question

Quizplus · Accepted Answer

The Earned Income Tax Credit (EITC) increases the marginal benefit of working by effectively raising the after-tax wage rate. This makes work more attractive compared to not working, leading to the substitution effect where leisure is substituted for labor. The substitution effect refers to the change in labor supply due to a change in the relative price of leisure and consumption (in this case, made more attractive to work due to the EITC).

For Someone Who Is Not Working at All Without the Earned