Statement I

question 62

Multiple Choice

Statement I.One unintended side effect of the Welfare Reform Act of 1996 was that the new rules may intimidate the number of eligible Americans from trying to receive food stamps and Medicaid.
Statement II: In 1996,for the first time since 1935,the federal government no longer guaranteed support to all America's children.

• A)Statement I is true and statement II is false.
• B)Statement II is true and statement I is false.
• C)Both statements are true.
• D)Both statements are false.

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Definitions:

Capital Goods

Physical assets used by businesses to produce goods and services, such as machinery, buildings, and equipment.

Consumer Goods

Products produced for purchase by individuals and households for personal use, such as clothing, food, and electronics.

Industrialize

The process by which an economy is transformed from primarily agricultural to one based on the manufacturing of goods.

Market-Oriented Economy

An economy in which decisions regarding investment, production, and distribution are based on supply and demand, and prices of goods and services are determined in a free price system.