What is the difference between social insurance and public assistance in income maintenance programs? What are examples of each type of government program?
What will be an ideal response?
Social insurance covers some of the lost earnings for people who retire or who are temporarily unemployed. Benefits are earned rights and you need not be poor to receive them. Examples of programs would be Social Security, unemployment compensation, and Medicare. Public assistance, or welfare, programs give benefits to individuals who are not able to earn incomes because of the need to care for children or because of handicaps. Individuals must demonstrate they have a low income to receive the benefits. The major examples of public assistance programs are Temporary Assistance to Needy Families (TANF), the Supplemental Nutrition Assistance Program (SNAP), Medicaid, the Supplemental Security Income (SSI) for age or disability, and the Earned Income Tax Credit (EITC).
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One of the differences between microeconomics and macroeconomics is the use of fiscal policy. Fiscal policy is conducted by:
a. local banks. b. a nation’s central bank. c. a nation’s legislative body. d. a state’s legislative body.
In 1962, Social Security and Medicare combined made up less than ______ percent of GDP.
a. 1 b. 5 c. 8 d. 10
If the Congress passes legislation to increase government spending to counter the effects of a recession, then this would be an example of a(n):
a. Supply-side fiscal policy b. Contractionary fiscal policy c. Expansionary fiscal policy d. Nondiscretionary fiscal policy
What effect has the presence of federal deposit insurance had on the banking industry?
A. Banks have made riskier loans. B. Depositors have become more vigilant in monitoring the decisions made by managers of their banks. C. Banks now hold more excess reserves. D. Banks have made it more difficult for customers to qualify for loans.