Economics 9708 · AS & A Level · Long-run costs and economies of scale

Long-run costs and economies of scale — practice question

A worker receives a low wage. There is little motivation for them to increase their income because they would pay more income tax and receive fewer means-tested benefits. What is this worker’s situation called?

  • Aemployment trap
  • Bliquidity trap
  • Cpoverty trap
  • Dunemployment trap

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