When a Program Is Means-Tested, It Means That

question 107

Multiple Choice

When a program is means-tested, it means that

• A) To be eligible, the recipient must be poor.
• B) It is a social insurance program.
• C) It is an in-kind program.
• D) The target efficiency is high.

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Definitions:

Economic Profits

The excess of a firm's total revenues over its opportunity costs, reflecting profitability beyond the normal return on investment.

Competitive Price-searcher Market

A market in which firms have some control over prices because their products are differentiated, but they still face competition and must search for competitive pricing strategies.

Zero Economic Profit

A situation where a firm's total revenue equals its total costs, including both explicit and implicit costs, indicating no supernormal profit.

Marginal Revenue

The additional income gained from selling one more unit of a good or service.