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D is one that achieves maximum wealth creation 11 a

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Unformatted text preview: ible adverse impact on wealth-creation incentives. C. is one that achieves a target level of redistribution only if the cost is acceptable. D. is one that achieves maximum wealth creation. 11. A “welfare trap” arises when A. more people are receiving welfare than can be supported by those who are working and paying taxes. B. welfare provides a higher net income to a recipient than the recipient could earn from working. C. welfare rates are too low to allow people to escape from poverty. D. government finds it difficult to reduce welfare payments because of political resistance. 37 12. “The purpose of all taxation is to raise revenue for government programs”. True or false? A. True. B. False. 13. “In Canada, federal income taxes are collected by the Provinces on behalf of the Federal Government, and refunded directly to them”. True or false? A. True. B. False. 14. In a progressive income tax system, A. the tax rate paid on the last dollar of income earned rises with the level...
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