Bundle: ECON MICRO, 5th + Aplia, 1 term Printed Access Card
Bundle: ECON MICRO, 5th + Aplia, 1 term Printed Access Card
5th Edition
ISBN: 9781337192712
Author: William A. McEachern
Publisher: Cengage Learning
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Chapter 18, Problem 4.8P
To determine

As to how work incentives are affected by the implicit tax on earned income and how do some people avoid the implicit tax.

Concept Introduction:

Implicit Tax – It refers to the indirect cost that is incurred as the result of getting employment, because welfare program assistance is missed.

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