Problems Concerning Brazil's Welfare State System Include All of the Following

question 29

Multiple Choice

Problems concerning Brazil's welfare state system include all of the following EXCEPT

• A) Workers in the informal sector cannot collect welfare as the government technically considers them employed.
• B) Brazil's welfare expenditures are among the lowest in the world.
• C) Only about 15 percent of the country's salaried workers qualify for benefits such as health care and the like.
• D) A substantial portion of the income transfers associated with the welfare system goes to middle and upper class retirees rather than the indigent.
• E) More people need welfare than those who contribute to it, thus forcing the government to finance the shortfall with debt.

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Definitions:

Interest Revenue

Income earned on investments, such as loans and securities, over a period.

Operating Income

Revenue from business operations after deducting operating expenses, but before interest and taxes.

Cost Method

An accounting method used to value certain investments at their original purchase cost, without adjusting for market fluctuations.

Recognizes Dividends

The process by which a company records the payment of dividends to its shareholders in its financial statements.