A negative income tax program is:
a. b, c, d, and e.
b. basically an income tax in reverse.
c. based on government cash payments to the poor that are linked to their income levels.
d. designed to provide a minimum level of income to the poor.
e. based on cash payments that decline as income level increases.
QUESTION 2Until 1980, the national debt was mostly the result of:
a. wartime borrowing.
b. inflation.
c. bad monetary policy.
d. wasteful Congressional spending.
e. Social Security obligations.
QUESTION 3Which type of unemployment is likely to decrease the most during an economy's boom?
a. Frictional unemployment
b. Seasonal unemployment
c. Structural unemployment
d. Cyclical unemployment
e. Underemployment
QUESTION 4The incentive to work is an ingredient of the negative income tax because:
a. if families do work, they will be eliminated from the program.
b. if families don't work, they will be eliminated from the program.
c. the more income earned in the workplace, the higher the family's after-tax income.
d. the more income earned in the workplace, the higher the payment from the government.
e. the amount earned in the workplace is not subject to income taxes.
QUESTION 5In the United States, since the Great Depression, the federal government has:
a. run budget deficits only in periods of recession.
b. run a budget deficit in almost every year.
c. practiced a policy of annually balancing the budget.
d. run budget deficits only in wartime.
e. run a surplus in most years.
Quick Reply
