Poor Americans Had Strong Incentives to Establish Their Eligibility for Aid

question 80

Multiple Choice

Poor Americans had strong incentives to establish their eligibility for Aid to Families with Dependent Children (AFDC) in the 1970s because AFDC recipients

• A) were exempted from the military draft.
• B) were immediately enrolled in Medicare.
• C) received a waiver on sales taxes.
• D) automatically received Medicaid and food stamps.

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Definitions:

Unit Costs

The cost incurred by a company to produce, store, and sell one unit of a particular product or service.

Diseconomies Of Scope

A situation where the cost of producing multiple products or services together is higher than producing them separately.

Economies Of Scope

Cost advantages that enterprises obtain due to a broader scope of operations or increased production diversity.

Economies Of Scope

Cost advantages that a business experiences by producing a variety of products rather than specializing in a single product or service.