A Family Advocate Is Proposing an Antipoverty Program Based on Norway's

question 18

Multiple Choice

A family advocate is proposing an antipoverty program based on Norway's family policy which will

• A) provide a family cash allowance to all families based on the cost of living in their geographic region
• B) provide a family cash allowance to those families who earn less than the median income.
• C) provide a tax credit for families with young children.
• D) provide a cash allowance when family size exceeds seven and income is below average.

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Definitions:

Moral Hazard

The risk that one party to a transaction might change their behavior to the detriment of the other party after the transaction has taken place, particularly when the first party is protected from the consequences.

Adverse Selection

A situation where asymmetric information results in high-risk individuals buying insurance or goods more frequently than low-risk individuals, distorting the market.

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of the good producers are willing to supply.

Medical Care

The maintenance or improvement of health via the diagnosis, treatment, and prevention of disease, illness, injury, and other physical and mental impairments in people.