Question

Multiple choice

1.

Which of the following programs is superior in terms of its ability to direct payments to those individuals or families in greatest need of assistance?

A.Social assistance or welfare

B.Unemployment insurance

C.Canada Pension Plan

D.None of the above choices are correct.

2.

The difference between a conventional welfare program and a negative income tax program is that:

A.Recipients of the negative income tax program will receive higher levels of total income than they would under conventional social assistance.  

B.For the negative income tax program, the benefits received have to be repaid once the worker is working full time for wages.

C.Individuals have to be living below the poverty line in order to qualify for the negative income tax program.

D.The former type of program is transferred to the recipient by the government, while the latter is taxed away from the recipient by the government.

3.

Which of the following is NOT a way to improve work incentives for welfare recipients?

A.Increase the market wages for jobs for which welfare recipients might be qualified to perform.

B.Reduce the very high implicit tax rate that is applied to earnings of welfare recipients.

C.Alter the preferences that certain recipients might have for leisure compared to work.

D.Raise the benefit level.

4.

All of the following are sources of concern with income maintenance programs except that:

A.They might reduce wages.

B.They might reduce work incentives.

C.They might be fiscally costly.

D.They might increase wages.

5.

What characteristic do experimental research and non-experimental research have in common?  

A.They both involve a control group and a treatment group.

B.They both involve selection via randomization.  

C.In neither approach does the researcher have control over which subjects are selected for the control group and which subjects are selected for the treatment group.  

D.In both cases subjects are allowed to determine whether they are members of the control group or the treatment group.  

Answer 1

1) Solution: Social assistance or welfare
Explanation: Social assistance or welfare is superior in terms of its efforts to make the direct payments for families that requires great assistance

2) Solution: As the individual works more hours on the labour market, the benefit is not reduced dollar for dollar against labour market earnings
Explanation: The negative income tax program and conventional welfare program differs on the grounds that when an individual is working more hours on the labour market the gains would not be declined for the dollar against it's earnings

3) Solution: Raise the benefit level
Explanation: Increasing the level of benefits will not enhance the work incentives for welfare recipients

4) Solution: They might reduce wage
Explanation: The income maintenance programs impacts a reduction in work incentives, rise in wages and can be fiscally costly.

As per policy we have to answer first four questions