77.
Refer to Figure 34.3. If a welfare recipient did not work, he or she would receive welfare benefits of
78.
Refer to Figure 34.3. The implied marginal tax rate is
79.
Refer to Figure 34.3. The disincentive to work caused by this welfare program
80.
Refer to Figure 34.4. The implied marginal tax rate in this example is
81.
Refer to Figure 34.4. If an individual does not work, she or he will receive welfare benefits of
82.
Refer to Figure 34.4. The breakeven level of income in this example is
83.
Refer to Figure 34.4. There is a welfare-induced disincentive to work starting at
84. In 2015 the largest U.S. cash transfer program
85. A transfer program that uses means testing to identify who is eligible for benefits is known as
A. An in-kind transfer.
86. A transfer program that is event-triggered for those who are eligible for benefits is known as
A. An in-kind transfer.
87. The largest amounts of dollars spent on income transfers are for
88. An unfair distribution of incomes is the result
89. Recipients of TANF funds are identified
90. A welfare recipient receives $10,000 in benefits when he does not work, but receives an income of $15,000
when he works part-time and earns $6,000 in wages. What is the implicit marginal tax rate the recipient faces?
91. Suppose that taxes on labor are increased by 10 percent and workers respond by working 2 percent fewer
hours. It can be said that
A. The tax elasticity of the labor supply is 0.2.
92. The primary benefit of the Social Security program is the
93. Which of the following is not a determinant of eligibility for Social Security benefits?
94. The largest portion of Social Security expenditures is for
95. The primary eligibility requirement for Social Security is
96. The Social Security program is financed by
A. Corporate profit taxes.
97. Social Security annual benefits to retirees
A. Are equal to the retirees’average annual salaries when they were working.
98. If the government reduced marginal tax rates on Social Security receipts to zero,
99. Use the following formula to answer the indicated question: Benefit amount = Maximum award – 0.6
(Wages in excess of ceiling) Raynoo is retired and earns $15,000 per year working part-time. She is
entitled to a maximum Social Security retirement benefit of $14,000. Social Security regulations allow her to
earn $9,000 and still get maximum benefits. Raynoo’s total income, including Social Security benefits, is
100. Use the following formula to answer the indicated question: Benefit amount = Maximum award – 0.6 (Wages in
excess of ceiling) Jarrett is retired and earns $10,000 per year working part-time. He is entitled to a maximum
Social Security retirement benefit of $14,000. Social Security regulations allow him to earn $8,000 and still get
maximum benefits. Jarrett’s total income, including Social Security benefits, is
A. $8,000.
101. Use the following formula to answer the indicated question: Benefit amount = Maximum award – 0.6 (Wages in
excess of ceiling) Charles is retired and earns $10,000 per year working part-time. He is entitled to a
maximum Social Security retirement benefit of $14,000. Social Security regulations allow him to earn $8,000
and still get maximum benefits. If he increases the number of hours he works and thus increases his earnings
to $20,000, his total income will increase by
102. Use the following formula to answer the indicated question: Benefit amount = Maximum award – 0.4 (Wages in
excess of ceiling) Rafael is retired and earns $15,000 per year working part-time. He is entitled to a maximum
Social Security retirement benefit of $14,000. Social Security regulations allow him to earn $10,000 and still get
maximum benefits. Rafael’s total income, including Social Security benefits, is