Question 1

Which of the following is most likely to occur if Medicare is converted from an in-kind transfer program to a cash transfer program?

Accepted Answer

A) A more equitable distribution of health care. 
B) Increased target efficiency. 
C) Increased poverty. 
D) A reduction in health care for the elderly. 
A) A more equitable distribution of health care. 
B) Increased target efficiency. 
C) Increased poverty. 
D) A reduction in health care for the elderly.

Question 2

Welfare support creates a moral hazard by

Accepted Answer

A) Reducing the need to work. 
B) Encouraging workfare. 
C) Encouraging individuals to help themselves. 
D) Solving the equity and efficiency conflict. 
A) Reducing the need to work. 
B) Encouraging workfare. 
C) Encouraging individuals to help themselves. 
D) Solving the equity and efficiency conflict.

Question 3

Refer to Figure 34.1.Suppose the production possibilities curve PP2 represents the goods and services produced in the U.S.economy.If the current welfare system discourages people from seeking work,and laws change so that more people receive welfare benefits,the most likely result would be

Accepted Answer

A) A movement from point C to point PP2. 
B) A shift from PP2 to PP1. 
C) A shift from PP2 to PP3. 
D) No change from PP2. 
A) A movement from point C to point PP2. 
B) A shift from PP2 to PP1. 
C) A shift from PP2 to PP3. 
D) No change from PP2.

Question 4

Suppose a poverty program has a basic benefit of $12,000,zero deductions,and a marginal tax rate of 0.80.The breakeven level of income is

Accepted Answer

A) $12,000. 
B) $9,600. 
C) $15,000. 
D) $2,400. 
A) $12,000. 
B) $9,600. 
C) $15,000. 
D) $2,400.

Question 5

Explain why Social Security and Medicare aren't welfare programs.

Accepted Answer

Social Security and Medicare a

Question 6

Which of the following is not an example of in-kind income?

Accepted Answer

A) Food stamps. 
B) Unemployment benefits. 
C) Housing assistance. 
D) Subsidized school lunches. 
A) Food stamps. 
B) Unemployment benefits. 
C) Housing assistance. 
D) Subsidized school lunches.

Exam 34: Transfer Payments: Welfare and Social Security

Which of the following is most likely to occur if Medicare is converted from an in-kind transfer program to a cash transfer program?

Welfare support creates a moral hazard by

Refer to Figure 34.1.Suppose the production possibilities curve PP2 represents the goods and services produced in the U.S.economy.If the current welfare system discourages people from seeking work,and laws change so that more people receive welfare benefits,the most likely result would be

Suppose a poverty program has a basic benefit of $12,000,zero deductions,and a marginal tax rate of 0.80.The breakeven level of income is

Explain why Social Security and Medicare aren't welfare programs.

Which of the following is not an example of in-kind income?

Economics: the Core Issues

The Useconomy: a Global View

Supply and Demand

The Role of Government

National Income Accounting

Unemployment

Inflation

The Business Cycle

Aggregate Demand

Self-Adjustment or Instability

Fiscal Policy

Deficits and Debt

Money and Banks

The Federal Reserve System

Monetary Policy

Supply-Side Policy: Short-Run Options

Growth and Productivity: Long-Run Possibilities

Theory Versus Reality

Consumer Choice

Elasticity

The Costs of Production

The Competitive Firm

Competitive Markets

Monopoly

Oligopoly

Monopolistic Competition

Natural Monopolies: Deregulation

Environmental Protection

The Farm Problem

The Labor Market

Labor Unions

Financial Markets

Taxes: Equity Versus Efficiency

International Trade

International Finance

Global Poverty

Filters

Refer to Figure 34.1.Suppose the production possibilities curve PP₂ represents the goods and services produced in the U.S.economy.If the current welfare system discourages people from seeking work,and laws change so that more people receive welfare benefits,the most likely result would be