Review Part 17

1

• Review Part 17
• Social Welfare and Entitlements

2

• 1) Which of the following is true about a
  class-based society?
• a. Disparity in the distribution of income and
  wealth
• b. Narrowing of the gap between the wealthy
  class and the middle class
• c. Increase in what the government determines to
  be an austere standard of living
• d. Reduction of the culture of poverty in the
  United States
• e. Move toward workfare rather than welfare

3

• 1) Which of the following is true about a
  class-based society?
• a. Disparity in the distribution of income and
  wealth
• b. Narrowing of the gap between the wealthy
  class and the middle class
• c. Increase in what the government determines to
  be an austere standard of living
• d. Reduction of the culture of poverty in the
  United States
• e. Move toward workfare rather than welfare

4

• 2) Liberals claim that a culture of poverty is
  caused by
• a. Government attempts to find solutions to the
  problem
• b. The value system of the poor
• c. Long-term abuses of society
• d. The poor taking advantage of government
  programs
• e. The success of minority assimilation into the
  work force

5

• 2) Liberals claim that a culture of poverty is
  caused by
• a. Government attempts to find solutions to the
  problem
• b. The value system of the poor
• c. Long-term abuses of society
• d. The poor taking advantage of government
  programs
• e. The success of minority assimilation into the
  work force

6

• 3) Which of the following represents the main
  difference between a progressive income tax and a
  proportional income tax?
• a. A progressive tax collects less money from
  the rich than the poor, whereas a proportional
  tax collects more from the rich
• b. A progressive tax collects more money from
  the rich than the poor, whereas a proportional
  tax is regressive
• c. A progressive tax collects more money from
  the rich than the poor, whereas a proportional
  tax collects the same
• d. A progressive tax collects the same amount of
  money from both the rich and the poor, whereas a
  proportional tax collects more from the rich
• e. A progressive tax has different brackets for
  different income earners, whereas a proportional
  tax has a greater number of brackets

7

• 3) Which of the following represents the main
  difference between a progressive income tax and a
  proportional income tax?
• a. A progressive tax collects less money from
  the rich than the poor, whereas a proportional
  tax collects more from the rich
• b. A progressive tax collects more money from
  the rich than the poor, whereas a proportional
  tax is regressive
• c. A progressive tax collects more money from
  the rich than the poor, whereas a proportional
  tax collects the same
• d. A progressive tax collects the same amount of
  money from both the rich and the poor, whereas a
  proportional tax collects more from the rich
• e. A progressive tax has different brackets for
  different income earners, whereas a proportional
  tax has a greater number of brackets

8

• Explanation
• A Progressive tax is based on the premise that
  the more you earn the more you pay in taxes.
• A Proportional tax, also known as a flat tax, is
  based on the premise that everybody should pay
  the the same percentage of taxes.
• A regressive tax is based on the premise that
  everybody has to pay a tax on essential goods,
  for example, a sales tax.

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• 4) Which of the following is an example of a
  contributory entitlement program?
• a. Supplemental Security Income
• b. Aid to Families with Dependent Children
• c. Social Security
• d. welfare
• e. Food stamps

10

• 4) Which of the following is an example of a
  contributory entitlement program?
• a. Supplemental Security Income
• b. Aid to Families with Dependent Children
• c. Social Security
• d. welfare
• e. Food stamps

11

• 5) The programs of the New Deal are examples of
  
• a. devolution
• b. The state-sponsored era
• c. The federal era
• d. Grant blocks to states
• e. The New Federalism

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• 5) The programs of the New Deal are examples of
  
• a. devolution
• b. The state-sponsored era
• c. The federal era
• d. Grant blocks to states
• e. The New Federalism

13

• Explanation
• State era 1789 - 1932, most social welfare
  programs being run by the state
• Federal Era 1932 to 1980, the New Deal and Great
  Society programs
• Safety Era 1980 - 1984, a move toward
  maintaining social welfare programs by using them
  as a safety net for those who needed them
• Block grant Era 1994, by the Republicans after
  they gained control of Congress, a move toward
  eliminating social welfare programs by providing
  block grants to the states

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• 6) Which of the following philosophies was
  behind the attempt to create a safety net for
  individuals?
• a. Federal government would be the exclusive
  agent to aid citizens
• b. State governments would only use block grants
  to help citizens
• c. The federal and state governments would share
  the costs equally
• d. Private businesses would provide benefits
• e. Even with federal government cutbacks, there
  wold still be an assurance that people in need
  would receive benefits

15

• 6) Which of the following philosophies was
  behind the attempt to create a safety net for
  individuals?
• a. Federal government would be the exclusive
  agent to aid citizens
• b. State governments would only use block grants
  to help citizens
• c. The federal and state governments would share
  the costs equally
• d. Private businesses would provide benefits
• e. Even with federal government cutbacks, there
  wold still be an assurance that people in need
  would receive benefits

16

• 7) Which of the following represents legislation
  that guarantees unpaid emergency medical
  assistance for workers?
• a. Medicare
• b. Social Security
• c. Family Medical Leave Act
• d. Medicaid
• e. Disability Insurance Act

17

• 7) Which of the following represents legislation
  that guarantees unpaid emergency medical
  assistance for workers?
• a. Medicare
• b. Social Security
• c. Family Medical Leave Act
• d. Medicaid
• e. Disability Insurance Act

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• 8) All the following were recommendations of the
  1983 National Commission on Social Security
  Reform EXCEPT
• a. Rescheduling previously approved increases in
  Social Security payroll taxes
• b. A means test for senior citizens over the age
  of 65 to determine their eligibility to receive
  benefits
• c. Gradually increasing the age when an
  individual could first receive Social Security
  benefits
• d. Requiring federal employees to contribute to
  the Social Security System
• e. Taxing a portion of the Social Security
  benefits for those people with incomes over
  20,000

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• 8) All the following were recommendations of the
  1983 National Commission on Social Security
  Reform EXCEPT
• a. Rescheduling previously approved increases in
  Social Security payroll taxes
• b. A means test for senior citizens over the age
  of 65 to determine their eligibility to receive
  benefits
• c. Gradually increasing the age when an
  individual could first receive Social Security
  benefits
• d. Requiring federal employees to contribute to
  the Social Security System
• e. Taxing a portion of the Social Security
  benefits for those people with incomes over
  20,000

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• Explanation
• The National Commission on Social Security formed
  in 1983 made a series of suggestions as a result
  of the fact that the government recognized that
  the future of the Social Security System was in
  critical shape. This commission recommended A,
  C, D, and E. Choice E was recommended by other
  commissions and may in fact be part of future
  social security reform.

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• The End