Multiple Choice
Dividing a market into segments based on the various ways to use a product is known as:
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0. Basic Principles of Economics
Introduction to Economics
Struggling with Microeconomics?
Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
The Earned Income Tax Credit (EITC) represents a reallocation of income to which group?
A
Retired individuals
B
Low-income working individuals and families
C
High-income earners
D
Corporations
Verified step by step guidance1
Understand the purpose of the Earned Income Tax Credit (EITC): it is a government program designed to provide financial support by reallocating income.
Identify the target group of the EITC: it is aimed at individuals or families who have earned income but fall below a certain income threshold.
Recognize that the EITC is intended to supplement the earnings of low-income working individuals and families to encourage work and reduce poverty.
Eliminate other groups such as retired individuals, high-income earners, and corporations, as the EITC is not designed to benefit these groups.
Conclude that the EITC reallocates income specifically to low-income working individuals and families.
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