<h2>Key Concepts and Summary</h2>
<p>A poverty trap occurs when government-support payments for the poor decline as the poor earn more income. As a result, the poor do not end up with much more income when they work, because the loss of government support largely or completely offsets any income that is earned by working. The bite of the poverty trap can be reduced by phasing out government benefits more slowly, as well as by imposing requirements for work as a condition of receiving benefits and a time limit on benefits.</p>
<h2>Glossary</h2>
<h3>poverty trap</h3>
<p>antipoverty programs set up so that government benefits decline substantially as people earn more income—as a result, working provides little financial gain</p>

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Key Concepts and Summary

Economics studies social behavior guiding the allocation of scarce resources to meet the unlimited needs and desires of the individual members of a given society, and for the production of goods and services, growth of production and welfare over time, and a great variety of other complex issues of vital concern to society. 

Economics

Discover the causes and impacts of poverty and economic inequality, explore programs like TANF, EITC, SNAP, and Medicaid, and learn about government policies to reduce income inequality in this tutorial.


Key Concepts and Summary

Key Concepts and Summary

Glossary

poverty trap

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