Means-Tested Programs Are Plans in Which

question 123

Multiple Choice

Means-tested programs are plans in which

• A) programs are administered exclusively at one level of government (federal or state).
• B) individuals contribute to an insurance trust fund through a payroll tax on their earnings.
• C) benefits are distributed on the basis of need to people with incomes low enough to qualify.
• D) contracts are awarded to small businesses with adequate resources to administer the program.
• E) only the unemployed may apply.

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Definitions:

Efficiency

The degree to which resources are utilized effectively to achieve a goal with minimum waste of time and effort.

Government

The governing body of a nation, state, or community which creates and enforces laws, manages public resources, and regulates societal functions.

Government Intervention

Actions taken by a government to affect or interfere with market activities or uphold laws for economic or social outcomes.

Markets Fail

Occurs when a market economy does not efficiently allocate resources, leading to outcomes like monopolies, public goods issues, or externalities.