2. In the United States, two government programs that provide economic assistance to poor families are the Earned Income Tax Credit (EITC) and Temporary Assistance to Needy Families (TANF). According to economic theory, how do these programs affect the labor supply of eligible families? O Both programs increase labor force participation. O Both programs decrease labor force participation. O The EITC increases labor force participation, whereas TANF decreases labor force participation. O TANF increases labor force participation, whereas the EITC decreases labor force participation. O Among those who work, both programs increase hours of work.

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2. In the United States, two government programs that provide economic assistance to
poor families are the Earned Income Tax Credit (EITC) and Temporary Assistance to Needy
Families (TANF). According to economic theory, how do these programs affect the labor
supply of eligible families?
O Both programs increase labor force participation.
O Both programs decrease labor force participation.
O The EITC increases labor force participation, whereas TANF decreases labor force participation.
O TANF increases labor force participation, whereas the EITC decreases labor force participation.
O Among those who work, both programs increase hours of work.
Transcribed Image Text:2. In the United States, two government programs that provide economic assistance to poor families are the Earned Income Tax Credit (EITC) and Temporary Assistance to Needy Families (TANF). According to economic theory, how do these programs affect the labor supply of eligible families? O Both programs increase labor force participation. O Both programs decrease labor force participation. O The EITC increases labor force participation, whereas TANF decreases labor force participation. O TANF increases labor force participation, whereas the EITC decreases labor force participation. O Among those who work, both programs increase hours of work.
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