Which of the Following Pairs Correctly Matches a Type of Policy

question 29

Multiple Choice

Which of the following pairs correctly matches a type of policy with a specific case of that type?

• A) redistributive policy and Social Security
• B) regulatory policy and Head Start
• C) distributive policy and Supplemental Security Income
• D) regulatory policy and a gas tax
• E) regulatory policy and TANF

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Definitions:

MPS

The marginal propensity to save, which is the fraction of an increase in income that is saved rather than spent.

Milton Friedman

An American economist known for his strong belief in free-market capitalism.

Permanent

Something that is meant to last or continue indefinitely without change.

Disposable Income

Refers to the sum of money available to families for spending and saving purposes once income taxes have been deducted.