The Welfare Reform Act of 1996 Ended the Concept of Entitlements

question 10

Multiple Choice

The Welfare Reform Act of 1996 ended the concept of entitlements by requiring recipients of welfare to find work within two years of receiving assistance. How has this changed the lives of the poor?

• A) Moving from welfare to work helped single people much more than it did families or single mothers.
• B) Moving from welfare to work caused many former welfare recipients to plunge into homelessness.
• C) Moving from welfare to work did not substantially increase income levels; it simply shifted the poor from welfare to low-paying jobs.
• D) Moving from welfare to work increases both the self-esteem of the poor and their income.
• E) Moving from welfare to work caused a significant decline in the rates of poverty in the United States.

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Definitions:

Stockholders' Equity

The ownership interest of shareholders in a corporation, calculated as total assets minus total liabilities.

Debt-To-Equity Ratio

A ratio that demonstrates the mix of shareholder equity versus debt financing employed to fund a company's assets.

Long-Term Liabilities

Financial obligations of a company that are due beyond one year, including bonds payable, long-term loans, and lease obligations.

Working Capital

The difference between current assets and current liabilities, indicating the short-term financial health of a business.