Deck 13: Expenditure Programs for the Poor

Question 1

Social Security Income (SSI)is available for all,except

A) aged.
B) immigrants.
C) blind.
D) disabled.

Answer 1

immigrants.

Question 2

Increasing the wage rate will cause people to work more.

A) True
B) False
C) Uncertain

Answer 2

Uncertain

Question 3

Under TANF,at least 50% of single mother recipients and 90% of two-parent families must be working or in work preparation programs.

A) True
B) False
C) Uncertain

Answer 3

True

Question 4

Poor people who participate in job training programs are more successful in leaving poverty.

A) True
B) False
C) Uncertain

Question 5

The Earned Income Tax Credit (EITC)

A) provides more income to those people on welfare.
B) is a tax on low income workers.
C) provides additional tax credits to low income workers.
D) is a tax break for the wealthiest Americans.

Question 6

The scope of the EITC program changed dramatically in

A) 1963.
B) 1983.
C) 1993.
D) 1996.

Question 7

A dollar reduction in benefits as a result of a dollar income from working is a

A) 50% tax rate.
B) 75% tax rate.
C) 22.5% tax rate.
D) 100% tax rate.

Question 8

All of the following are in-kind benefit programs,except

A) food stamps.
B) Medicaid.
C) energy assistance.
D) SSI.

Question 9

Enrollment in the Medicaid program

A) is designed for those persons 65 years of age and older.
B) has increased due to expanded eligibility.
C) covers all medical expenses that a poor person may incur.
D) requires a substantial co-payment that has not been helpful to poor families.

Question 10

The maximum amount of EITC benefit in 2012 was?

A) $6090
B) $2398
C) $104
D) $5236

Question 11

Federal job training programs

A) help provide job market skills to those in poverty.
B) have been overwhelmingly effective in helping those in poverty.
C) cost very little money per person participating.
D) all of these answer options are correct.

Question 12

The Head Start program

A) has been successful in fostering better levels of school attainment.
B) began in 1965.
C) provides preschool activities for 4 and 5 year old disadvantaged students.
D) all of these answer options are correct.

Question 13

The average food stamp payment in 2010 was?

A) $150
B) $435
C) $0
D) $287

Question 14

Under TANF,the time limit for receiving benefits during a lifetime is

A) 12 years.
B) 13 weeks.
C) 60 months.
D) 5 months.

Question 15

Crowding out can occur when public insurance crowds out private insurance.

A) True
B) False
C) Uncertain

Question 16

The gross replacement rate is

A) the proportion of pretax earnings replaced by unemployment insurance.
B) a rate of employment in key sectors of the economy.
C) the percentage of each paycheck that is removed for unemployment insurance.
D) the rate that tax receipts are used to cover tax expenditures.
E) none of these answer options are correct.

Question 17

The switch from AFDC to TANF took place in

A) 1937.
B) 1986.
C) 1996.
D) 1998.

Question 18

Expenditures on major need-tested programs from the federal government for medical care amounted to _____ in 2009.

A) $98.1
B) $28.8
C) $46.9
D) $200.0
E) none of these answer options are correct.

Question 19

Voucher programs for housing

A) provide rent vouchers for existing housing stock.
B) are underutilized with a surplus of housing stock.
C) provide down payment assistance to purchase homes.
D) are known as Section 8.

Question 20

Which is the largest cash transfer program for the poor?

A) TANF
B) Medicare
C) SSI
D) Medicaid

Question 21

The gross replacement rate is typically 95% of pretax earnings.

A) True
B) False
C) Uncertain

Question 22

A needy family consisting of a mother and three children currently receives cash benefits that average $12 per day.The mother of this family is allowed to earn an average of $4 per day before her benefits begin to decline.After that,for each dollar earned,cash benefits decline by 67 cents for each dollar earned.Assume that she can find work at $4 per hour.How many hours will she have to work per day before her benefits are eliminated?

Question 23

Over the years,there have been many programs designed to help the poor.One of the more popular ones has been the Earned Income Tax Credit (EITC).What makes this program so popular?

Question 24

Unemployment taxes are collected from both employees and employers.

A) True
B) False
C) Uncertain

Question 25

Consider a negative income tax.As discussed in your textbook,under the negative income tax,each person is entitled to a grant of G dollars per month.For every dollar the person earns,the grant is reduced by t dollars.Suppose G = 200 and t = 0.40.Consider an individual whose hourly wage is $10.There are 30 days in a month (so T is 720).Sketch the budget constraint before and after the introduction of a negative income tax.

Question 26

The majority of government programs designed to help poor families consists of direct cash payments.

A) True
B) False
C) Uncertain

Question 27

Medicaid is the most expensive program that the government runs that provides benefits to the poor.

A) True
B) False
C) Uncertain

Question 28

Workfare requires able-bodied individuals to participate in work-related activities in order to receive transfer payments.

A) True
B) False
C) Uncertain

Question 29

Only about a quarter of the population eligible for housing subsidies actually receives them.

A) True
B) False
C) Uncertain

Question 30

Providing housing decreases the incentive for the poor to find their own.

A) True
B) False
C) Uncertain

Question 31

What are some of the drawbacks,as you see them,to a program like Workfare?

Question 32

In New York,a welfare recipient can earn $90 per month without having her benefits reduced.Beyond $90,benefits are reduced by 57 cents for every dollar of earnings.Consider Jackie,a resident of New York,who can earn $10 per hour.If she does not work at all,she is eligible for welfare benefits of $577.
(A)If she works 10 hours,how much are her work earnings,how much is her welfare benefits,and how much is her total income?
(B)After Jackie works a certain number of hours,she does not receive any benefits at all.What is that number of hours?

Question 33

One of the changes in the welfare system of the United States that occurred in 1996 was a move to block grants for states.What advantage(s)might a block grant system allow?