Means-Tested Programs Tend to Favor Those with

question 47

Multiple Choice

Means-tested programs tend to favor those with

• A)high income as would a consumption tax.
• B)high income while a consumption tax would favor those with low income.
• C)low income as would a consumption tax.
• D)low income while a consumption tax would favor those with high income.

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Definitions:

Default

A failure to fulfill an obligation, especially failure to meet a financial obligation like a loan repayment.

Mortgage Company

A financial institution that provides loans specifically for buying real estate properties.

Probability

A measure quantifying the likelihood that an event will occur, ranging between 0 and 1.

Probability Distribution

A statistical function describing the likelihood of different outcomes in a random experiment.