Question 1

What are the fundamental differences between the Medicare and Medicaid programs?

Accepted Answer

Medicare is not a means-tested program.Any American 65 or older can receive these medical benefits, regardless of income.Medicaid is a means-tested program available to the poorest citizens, regardless of age.

Question 2

Compared to other countries of comparable wealth, the United States has:

Accepted Answer

A) unusually high poverty rates. 
B) similar levels of poverty. 
C) relatively low levels of poverty. 
D) low levels of poverty only when relative measures of poverty are used. 
A) unusually high poverty rates. 
B) similar levels of poverty. 
C) relatively low levels of poverty. 
D) low levels of poverty only when relative measures of poverty are used. A

Question 3

Which of the following is the best example of social insurance?

Accepted Answer

A) liability insurance for automobiles 
B) food stamps 
C) housing subsidies 
D) Social Security 
A) liability insurance for automobiles 
B) food stamps 
C) housing subsidies 
D) Social Security D

Question 4

In the United States, individuals pay directly (out of pocket) of all medical costs.

Accepted Answer

A) 100% 
B) between 70% and 80% 
C) 50% 
D) less than 15% 
A) 100% 
B) between 70% and 80% 
C) 50% 
D) less than 15%

Question 5

A sudden loss of income and a significant increase in costly medical expenses are examples of:

Accepted Answer

A) economic insecurity. 
B) economic inequality. 
C) poverty thresholds. 
D) the Great Compression. 
A) economic insecurity. 
B) economic inequality. 
C) poverty thresholds. 
D) the Great Compression.

Question 6

The single most important factor influencing children's later socioeconomic attainment is:

Accepted Answer

A) parental income. 
B) education. 
C) health care. 
D) geographic mobility. 
A) parental income. 
B) education. 
C) health care. 
D) geographic mobility.

Question 7

Programs associated with the welfare state are believed to create deadweight loss, since they:

Accepted Answer

A) affect government budgets. 
B) affect incentives to work and to save. 
C) are supported by many political parties. 
D) are based on the ability-to-pay principle. 
A) affect government budgets. 
B) affect incentives to work and to save. 
C) are supported by many political parties. 
D) are based on the ability-to-pay principle.

Question 8

The U.S.government health insurance program for people 65 years old and older is:

Accepted Answer

A) Medicare. 
B) Medicaid. 
C) the Veterans Administration. 
D) health savings accounts. 
A) Medicare. 
B) Medicaid. 
C) the Veterans Administration. 
D) health savings accounts.

Question 9

The U.S.government health insurance program that is means tested is:

Accepted Answer

A) Medicare. 
B) Medicaid. 
C) the Veterans Administration. 
D) health savings accounts. 
A) Medicare. 
B) Medicaid. 
C) the Veterans Administration. 
D) health savings accounts.

Question 10

Food stamps are an example of:

Accepted Answer

A) a negative income tax. 
B) an in-kind benefit. 
C) a monetary benefit. 
D) unemployment insurance. 
A) a negative income tax. 
B) an in-kind benefit. 
C) a monetary benefit. 
D) unemployment insurance.

Question 11

Unemployment insurance is a(n):

Accepted Answer

A) means-tested monetary transfer. 
B) monetary transfer that is not means tested. 
C) means-tested in-kind benefit. 
D) in-kind benefit that is not means tested. 
A) means-tested monetary transfer. 
B) monetary transfer that is not means tested. 
C) means-tested in-kind benefit. 
D) in-kind benefit that is not means tested.

Question 12

In the United States, the government pays of all medical costs.

Accepted Answer

A) 100% 
B) between 70% and 80% 
C) approximately 50% 
D) less than 20% 
A) 100% 
B) between 70% and 80% 
C) approximately 50% 
D) less than 20%

Question 13

An example of a means-tested program is:

Accepted Answer

A) expenditure on national defense. 
B) Social Security payments to the disabled. 
C) the food stamp program. 
D) purchasing a new city police car. 
A) expenditure on national defense. 
B) Social Security payments to the disabled. 
C) the food stamp program. 
D) purchasing a new city police car.

Question 14

When a welfare program is provided to those whose income falls below some minimum, it is said to be:

Accepted Answer

A) means tested. 
B) an in-kind benefit. 
C) a monetary benefit. 
D) a negative income tax. 
A) means tested. 
B) an in-kind benefit. 
C) a monetary benefit. 
D) a negative income tax.

Question 15

A factor that has been associated with the increase in income inequality in the United States is the:

Accepted Answer

A) decrease in households headed by single women. 
B) reduction in the percentage of the population over the age of 65. 
C) increase in immigration. 
D) slowdown in technological change. 
A) decrease in households headed by single women. 
B) reduction in the percentage of the population over the age of 65. 
C) increase in immigration. 
D) slowdown in technological change.

Question 16

A factor that has been associated with the increase in income inequality in the United States is:

Accepted Answer

A) the growth in technology. 
B) the reduction in the percentage of the population over the age of 65. 
C) the smaller gap between the wages of skilled and unskilled workers. 
D) affirmative action programs. 
A) the growth in technology. 
B) the reduction in the percentage of the population over the age of 65. 
C) the smaller gap between the wages of skilled and unskilled workers. 
D) affirmative action programs.

Question 17

Which of the following countries has a single-payer system funded through taxes in which the government is the principal payer of medical bills for all of its citizens?

Accepted Answer

A) United States 
B) Canada 
C) France 
D) Great Britain 
A) United States 
B) Canada 
C) France 
D) Great Britain

Question 18

Since about 1950, the share of income going to the richest 10% of Americans has steadily increased.What explains this trend?

Accepted Answer

Economists continue to debate this issue

Question 19

The negative income tax:

Accepted Answer

A) is the term used by economists to describe a badly designed tax system. 
B) refers to a tax system in which low incomes are taxed at a higher rate than high incomes. 
C) is a program in which low-income working families receive income supplements rather than having to pay positive taxes. 
D) is the minimum tax that must be paid by a business even if it has a negative income (or a loss). 
A) is the term used by economists to describe a badly designed tax system. 
B) refers to a tax system in which low incomes are taxed at a higher rate than high incomes. 
C) is a program in which low-income working families receive income supplements rather than having to pay positive taxes. 
D) is the minimum tax that must be paid by a business even if it has a negative income (or a loss).

Question 20

The is widely used to measure income inequality.

Accepted Answer

A) Gini coefficient 
B) median household income 
C) poverty rate 
D) ability-to-pay principle 
A) Gini coefficient 
B) median household income 
C) poverty rate 
D) ability-to-pay principle

What are the fundamental differences between the Medicare and Medicaid programs?

Compared to other countries of comparable wealth, the United States has:

Which of the following is the best example of social insurance?

In the United States, individuals pay directly (out of pocket) of all medical costs.

A sudden loss of income and a significant increase in costly medical expenses are examples of:

The single most important factor influencing children's later socioeconomic attainment is:

Programs associated with the welfare state are believed to create deadweight loss, since they:

The U.S.government health insurance program for people 65 years old and older is:

The U.S.government health insurance program that is means tested is:

Food stamps are an example of:

Unemployment insurance is a(n):

In the United States, the government pays of all medical costs.

An example of a means-tested program is:

When a welfare program is provided to those whose income falls below some minimum, it is said to be:

A factor that has been associated with the increase in income inequality in the United States is the:

A factor that has been associated with the increase in income inequality in the United States is:

Which of the following countries has a single-payer system funded through taxes in which the government is the principal payer of medical bills for all of its citizens?

Since about 1950, the share of income going to the richest 10% of Americans has steadily increased.What explains this trend?

The negative income tax:

The is widely used to measure income inequality.

First Principles

Economic Models: Trade-Offs and Trade

Supply and Demand

Consumer and Producer Surplus

Price Controls and Quotas: Meddling With Markets

Elasticity

Taxes

International Trade

Decision Making by Individuals and Firms

The Rational Consumer

Behind the Supply Curve: Inputs and Costs

Perfect Competition and the Supply Curve

Monopoly

Oligopoly

Monopolistic Competition and Product Differentiation

Externalities

Public Goods and Common Resources

Factor Markets and the Distribution of Income

Uncertainty, Risk, and Private Information

Filters

Exam 18: The Economics of the Welfare State

What are the fundamental differences between the Medicare and Medicaid programs?

Compared to other countries of comparable wealth, the United States has:

Which of the following is the best example of social insurance?

In the United States, individuals pay directly (out of pocket) of all medical costs.

A sudden loss of income and a significant increase in costly medical expenses are examples of:

The single most important factor influencing children's later socioeconomic attainment is:

Programs associated with the welfare state are believed to create deadweight loss, since they:

The U.S.government health insurance program for people 65 years old and older is:

The U.S.government health insurance program that is means tested is:

Food stamps are an example of:

Unemployment insurance is a(n):

In the United States, the government pays of all medical costs.

An example of a means-tested program is:

When a welfare program is provided to those whose income falls below some minimum, it is said to be:

A factor that has been associated with the increase in income inequality in the United States is the:

A factor that has been associated with the increase in income inequality in the United States is:

Which of the following countries has a single-payer system funded through taxes in which the government is the principal payer of medical bills for all of its citizens?

Since about 1950, the share of income going to the richest 10% of Americans has steadily increased.What explains this trend?

The negative income tax:

The is widely used to measure income inequality.

First Principles

Economic Models: Trade-Offs and Trade

Supply and Demand

Consumer and Producer Surplus

Price Controls and Quotas: Meddling With Markets

Elasticity

Taxes

International Trade

Decision Making by Individuals and Firms

The Rational Consumer

Behind the Supply Curve: Inputs and Costs

Perfect Competition and the Supply Curve

Monopoly

Oligopoly

Monopolistic Competition and Product Differentiation

Externalities

Public Goods and Common Resources

Factor Markets and the Distribution of Income

Uncertainty, Risk, and Private Information

Filters