Which Potential Target Group for Welfare Benefits Would Best Satisfy

question 1

Multiple Choice

Which potential target group for welfare benefits would best satisfy the two characteristics of a good targeting mechanism?

• A) single mothers
• B) people who have a missing leg
• C) people earning less than $8 per hour
• D) people without health insurance

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Definitions:

Allocation of Resources

The process by which resources are distributed for the production of goods and services within an economy.

Government Intervention

Regulatory actions taken by a government in order to affect decisions made by individuals, groups, or organizations within its economic systems.

Excludable

A characteristic of a good or service that allows the owner or provider to prevent others from using it without permission.

Rival

A characteristic of a good or service that implies its consumption by one individual prevents simultaneous consumption by another individual.