Means-Tested Programs Tend to Favor

question 44

Multiple Choice

Means-tested programs tend to favor

• A)those with high income as would a consumption tax.
• B)those with high income while a consumption tax would favor those with low income.
• C)those with low income as would a consumption tax.
• D)those with low income while a consumption tax would favor those with high income.

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Definitions:

Elastic in the Long Run

Describes a situation where the quantity demanded or supplied of a good or service responds significantly to price changes over a longer period.

Telephone Service

A communication service provided through electrical transmission of voice, fax, or other information.

Medical Care

Professional services provided by doctors, nurses, dentists, and other health professionals to treat or prevent health problems and enhance well-being.

Perfectly Elastic

A situation in economics where the quantity demanded or supplied changes infinitely in response to any change in price, typically represented with a horizontal demand or supply curve.