Noncontributory Programs, Such as Medicaid, Are Implemented in Part Through

question 73

Multiple Choice

Noncontributory programs, such as Medicaid, are implemented in part through means testing, meaning that:

• A) potential benefit recipients have their eligibility determined through a process involving proof of income and need.
• B) the programs are administered by the states, which all have strict eligibility rules.
• C) the programs' generosity differs from place to place, given a federal formula involving recipient incomes and local cost of living.
• D) potential benefit recipients must prove only that they live below the poverty line.

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Definitions:

Total Cost

The full expense incurred in the production or acquisition of goods or services, including both fixed and variable costs.

Marginal Cost

The supplementary charge triggered by the manufacture of one extra unit of a product or service.

Average Variable Cost

The total variable cost divided by the quantity of output produced; it represents the variable cost per unit of output.

Marginal Cost

The incremental cost associated with the production of an additional unit of a product or service.