Social Insurance Programs Have High Levels of Public Support Because

question 12

Multiple Choice

Social insurance programs have high levels of public support because

• A)of their self-financing feature.
• B)they are based on an equality principle-all citizens are eligible for the benefits and all recipients receive the same level of benefits.
• C)their cost is consistently below the spending level for public assistance programs.
• D)of the necessity of increased taxes to fund them.
• E)None of these answers is correct.

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Definitions:

Retained Earnings Account

An equity account that represents the accumulated profits of a company that have not been distributed to shareholders as dividends.

Income Statement Account

An income statement account is a financial account that reflects income, expenses, gains, and losses over a period, used to calculate net income.

Stock Dividend

A distribution of additional shares of a company to its shareholders instead of paying cash dividends, often used to conserve cash while still rewarding investors.

Par Value

The nominal or face value of a bond, stock, or coupon as stated by the issuer, which often bears no relation to its market value.