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2. Assume we have a negative income tax (income maintenance program) with the following attributes: Assume a person earns $7500 per year (A) What is the break-even level of income (the income at which he receives no more subsidy)? (B) How much of a subsidy does this person receive?.

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2. Assume we have a negative income tax (income maintenance program) with the following attributes: Assume a person earns $7500 per year (A) What is the break-even level of income (the income at which he receives no more subsidy)? (B) How much of a subsidy does this person receive?

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