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6. Policies to reduce poverty Using several types of public policies, the govern

ID: 1202498 • Letter: 6

Question

6. Policies to reduce poverty Using several types of public policies, the government has attempted to alleviate poverty, with varying success. One example is antipoverty progran intended to supplement family income. An important effect of this type of policy is that it can result in effective marginal tax rates that can harm incentives toward work. higher One adjustment that can be made is to gradually reduce benef gner mes rise. However, the more gradual the phase-out of benefits, the the burden on taxpayers. lower

Explanation / Answer

Answer to blank 1: higher

Answer to blank 2: higher

Answer to blank 3: supporting drug addictions