What Are the Pros and Cons of Using Age and Need

question 35

Essay

What are the pros and cons of using age and need in determining the eligibility for social benefits programs?

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Definitions:

Contingent Claims

Financial derivatives that pay out based on the occurrence of specific events or conditions, such as options or certain types of insurance contracts.

Exercise

In financial terms, it refers to the act of invoking the right to buy or sell the underlying asset in a derivative contract.

Payoffs

The potential financial returns or losses from an investment, transaction, or strategy, often evaluated at the time of an investment's maturity or closure.

Assets

Items of value owned by a person or company, regarded as having value and available to meet debts, commitments, or legacies.