Homework Clinic
Social Science Clinic => Economics => Microeconomics => Topic started by: chandani on Jul 21, 2019
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Compared with a low benefit reduction rate, a relatively high benefit reduction rate in a cash assistance program:
◦ does not affect the incentive to work.
◦ will reduce the incentive to work through the substitution effect but will increase the incentive to work through the income effect.
◦ reduces the incentive to work.
◦ increases the incentive to work.
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reduces the incentive to work.
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Thanks
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