Deck 18: Social Safety Nets

Question 1

The money taken out of paychecks for "FICA" goes directly to what federal program?

A) TANF
B) Medicare
C) Social Security
D) Unemployment insurance
E) Food stamps

Answer 1

C

Question 2

Which of the following statements is true??A) National defense represents the single largest portion of the federal budget.
B) Public assistance accounts for the largest portion of the federal budget.
C) Social insurance accounts for the largest portion of the federal budget.
D) National defense spending has declined to account for the smallest portion of the federal budget.
E) Safety net spending is virtually absent from the federal budget.

Answer 2

C

Question 3

Which is the largest social insurance program, one that pays benefits to individuals who have contributed to a national trust fund throughout their employment histories?

A) Medicare
B) Social Security
C) TANF
D) Medicaid
E) Unemployment insurance

Answer 3

B

Question 4

Safety nets are defined as

A) government programs that protect the minimum standard of living of individuals and families against loss of income.
B) policies designed to promote socialism in the United States.
C) the use of interest rates to affect change in economic productivity.
D) tax cuts designed to benefit the poor.
E) None of the above

Question 5

According to your text, which of the following statements does NOT characterize the development of welfare states in rich democracies?

A) Structural factors best explain why political leaders create and expand safety nets.
B) Political leaders created such programs in part for votes and election victories.
C) Industrialization produces hardships.
D) Interest groups work to influence politicians to support their members' preferences through safety net programs.
E) Welfare states and programs were used to undermine radical movements for change.

Question 6

Which of the following factors have limited the introduction of social welfare programs into the United States?

A) Federalism
B) Democracy
C) Supreme Court cases
D) Our homogenous culture
E) The vagueness of presidential power and authority

Question 7

Which of the following statements best describes unemployment insurance??A) It pays for a substantial portion of the hospital, doctor, and drug costs of retirees and the disabled.
B) It is the largest of the social insurance programs.
C) It includes an automatic cost of living adjustment (COLA) tied to inflation.
D) Benefits and its administration are handled by the states under federal guidelines.
E) Unemployment insurance is supported only by Democrats in Congress.

Question 8

Cost of living adjustments are designed to mitigate the negative impact of which of the following?

A) Inflation
B) Unemployment
C) Taxes
D) Interest rates
E) Fiscal spending

Question 9

Which of the following is a means-tested program?

A) Unemployment insurance
B) Medicare
C) Social Security
D) Medicaid
E) Welfare

Question 10

A social welfare state is

A) another name for state socialism, with central planning, guaranteed employment, and mandated prices.
B) a society with government programs that pool citizens' money into insurance deposits for use during a crisis.
C) any society that guarantees a floor income below which no citizen can fall, regardless of ability to work.
D) a society with a set of government programs that protect the minimum standards of living for people.
E) a society based exclusively on the free market and individualism.

Question 11

A social welfare state is

A) a society with a set of government programs that protect the minimum standards of living.
B) strongly based on the benefits of the free market and individualism.
C) used primarily in underdeveloped nations with relatively young populations.
D) one of the fundamental freedoms that is protected in the Bill of Rights.
E) None of the above

Question 12

Welfare states

A) are governments that control the economy.
B) provide a range of safety net programs.
C) tend to have lower tax rates than other countries.
D) tend to rely on the private sector to eliminate poverty.
E) None of the above

Question 13

Unemployment insurance

A) pays for a substantial portion of the hospital, doctor, and drug costs of retirees and the disabled.
B) is the largest of the social insurance programs, accounting for a large share of the federal deficit.
C) includes an automatic cost of living adjustment (COLA) that is set by Congress.
D) is administered by the states under federal guidelines, with the level of benefits set by the states.
E) None of the above

Question 14

An example of a program that is NOT jointly financed and administered by federal and state governments is

A) TANF.
B) Medicaid.
C) Food Stamps.
D) Social Security.
E) None of the above

Question 15

An aging baby boomer population is the primary concern of

A) Medicaid funding.
B) social security funding.
C) unemployment insurance.
D) social welfare spending.
E) health insurance for children.

Question 16

The Social Security Act of 1935 was important in that it

A) continued a longstanding commitment of the U.S. government in promoting social welfare assistance.
B) was a first step in the United States toward building a social insurance safety net.
C) established a clear formula for the redistribution of income.
D) initially provided health care assistance for the elderly.
E) helped poor children survive the Great Depression.

Question 17

Individuals who contribute to an insurance trust fund through payroll taxes are contributing to

A) social insurance programs.
B) government retirement programs.
C) welfare assistance programs.
D) government health care.
E) None of the above

Question 18

Which of the following are possible solutions to the long-term social security trust fund problem?

A) Raising the payroll tax rate.
B) Raising the ceiling on taxable income subject to the payroll tax.
C) Cutting back benefit levels.
D) Raising the retirement age.
E) All of the above

Question 19

What percentage of social security benefits goes to disability and survivors??A) About 10
B) About 20
C) About 30
D) About 45
E) About 60

Question 20

Social Security is funded by

A) state income taxes.
B) state sales taxes.
C) local property taxes.
D) federal payroll taxes.
E) federal income taxes.

Question 21

Which of the following is a social insurance program?

A) Aid to Families with Dependent Children (AFDC)
B) Medicare
C) Social Security
D) Supplemental Security Income (SSI)
E) None of the above

Question 22

Republicans typically support which of the following as an alternative to paying for increasing Medicare costs?

A) Private savings accounts
B) Health savings accounts
C) Government-sponsored health accounts
D) Universal health care coverage
E) State-based health insurance programs

Question 23

Medicaid eligibility rules

A) are determined at the federal level.
B) are complex and tend to exclude those who are not extremely poor, blind, or disabled.
C) are used to insure universal health care coverage in America.
D) by law must be uniform from state to state.
E) All of the above

Question 24

How does the United States compare to other social welfare states such as those in Western Europe, Japan, Australia, and New Zealand?

A) The U.S. welfare state developed later than the others and is close to being at the minimal end of the benefits spectrum.
B) The U.S. welfare state developed earlier than the others and is close to being at the maximum end of the benefits spectrum.
C) The U.S. welfare state developed later than the others and ranks near the middle of the benefits spectrum.
D) The U.S. welfare state developed earlier than the others and ranks near the middle of the benefits spectrum.
E) None of the above

Question 25

Public assistance or welfare programs

A) are funded and administered exclusively by the federal government.
B) receive a larger share of the federal budget than any other program except defense.
C) are funded by a special payroll tax on employees and employers.
D) account for only a small part of the annual federal budget.
E) None of the above

Question 26

In 1996, Congress passed the Temporary Assistance to Needy Families Act (TANF). Which of the following is a major feature of TANF?

A) The status of welfare assistance as a federal entitlement has been ended.
B) States must provide Medicaid to all who qualify under current law.
C) The design and administration of welfare programs has been turned over to the individual states.
D) States receive block grants from the federal government to help them finance the welfare systems they devise.
E) All of the above

Question 27

Figure 18.1 shows that

A) Social security accounts for about one-third of federal spending.
B) Social security spending has increased more than means-tested program spending has increased over the same time frame.
C) Means-tested programs account for about 13 percent of federal spending.
D) Social security spending is greater than spending for means-tested programs.
E) All of the above

Question 28

Figure 18.3 shows that

A) the percentage of those who think their health care system should be rebuilt increases as spending on health care decreases.
B) the percentage of those who think their health care system should be rebuilt increases as spending on health care increases.
C) Germany spends the most on health care.
D) the United States spends the least on health care.
E) None of the above

Question 29

In social insurance programs, such as

A) TANF and Food Stamps, people who qualify based on income are given cash payments.
B) Medicaid, the government grants loans to poor families to pay for unexpected costs.
C) job training and housing assistance, private corporations, at the request of the federal government, perform public services.
D) Social Security, people contribute to a national trust fund and receive benefits based on contributions.
E) AFDC, people are required to work for benefit payments.

Question 30

According to the By the Numbers feature in Chapter 18,

A) poverty is always at its highest during a recession.
B) poverty rates have declined dramatically since the 1970s.
C) the poverty rate has increased since the 1980s.
D) the number of people in poverty has increased since 1999.
E) the poverty rate is now at its highest point since the 1950s.

Question 31

A large majority of American social welfare spending goes for

A) TANF, and its share is growing steadily.
B) TANF, but its proportion is shrinking.
C) social insurance programs, and its share is growing steadily.
D) social insurance programs, but its proportion is shrinking.
E) AFDC.

Question 32

Prescription drug coverage for the elderly was expanded in 2003 as part of

A) Medicaid.
B) Social security.
C) Medicare.
D) TANF.
E) COBRA.

Question 33

Which of the following is a result of the Temporary Assistance to Needy Families program?

A) Numerous Americans who had previously been on welfare have entered the workforce.
B) Welfare rolls across the country have declined.
C) Numerous Americans who had previously been on welfare have trained for jobs.
D) Numerous Americans who had previously been on welfare have raised their incomes.
E) All of the above

Question 34

Public assistance is unpopular in the United States largely because

A) it seems to contradict cherished American values.
B) it has been a miserable failure.
C) it takes up a huge portion of the federal budget.
D) the elderly do not benefit from Social Security.
E) it benefits the wealthy.

Question 35

The largest share of federal social welfare spending in the United States goes for

A) Medicaid.
B) unemployment insurance.
C) Aid to Families with Dependent Children.
D) Social Security and Medicare.
E) food stamps.

Question 36

Financing of social insurance programs, such as Social Security, is through

A) general tax revenues.
B) loans.
C) individuals contributing to a trust fund.
D) general obligation bonds.
E) private investment accounts.

Question 37

Social Security is paid for to a substantial degree by

A) those who are currently employed.
B) retired workers.
C) labor unions.
D) mutual funds.
E) baby boomers.

Question 38

Which social insurance program pays for a substantial portion of the hospital, doctor, and drug costs of retirees and the disabled?

A) Medicare
B) AFDC
C) Social Security
D) Medicaid
E) None of the above

Question 39

Though it attracts more popular criticism than virtually any other government program, public assistance (welfare)

A) has never been reformed.
B) gives more benefits to more Americans than any other government program.
C) is actually quite popular.
D) accounts for a small part of the federal budget.
E) remains ineffective.

Question 40

Figure 18.2 shows that

A) the percentage of children living in poverty has declined over time.
B) the percentage of children living in poverty has increased over time.
C) the percentage of children living in poverty has remained about the same over time.
D) the percentage of people 65 and older living in poverty has increased over time.
E) the percentage of people 65 and older living in poverty has remained the same over time.

Question 41

How does political culture affect the American welfare system?

A) The belief in competitive individualism works against an expansive system.
B) Antigovernment themes in American culture limit support for welfare programs.
C) Business power trumps labor unions.
D) Labor unions are unlikely to form in the southern states.
E) A and B

Question 42

Recently, the design and administration of which type of program has been turned over to the states?

A) Medicaid
B) Social security
C) Medicare
D) TANF
E) AFDC

Question 43

What is one of the benefits of unemployment insurance to the economy as a whole?

A) Paying taxes on unemployment compensation increases government revenues.
B) People who receive unemployment quickly spend it, contributing to economic growth.
C) It helps individuals transition between jobs.
D) It helps employers find available workers.
E) None of the above

Question 44

Which of the following is important to determine the size and cost of government programs?

A) The number of people living in poverty.
B) The number of people paying general revenue taxes.
C) The number of people receiving unemployment compensation.
D) The number of people paying into the social security taxes.
E) The percentage of those over 60 who receive social security checks.

Question 45

Which of the following features of American government is responsible for the incredible complexity of our social welfare system?

A) Federalism
B) Separation of powers
C) Checks and balances
D) Racism
E) Bureaucracy

Question 46

Which of the following is true with respect to American labor unions?

A) About 90 percent of the American labor force is unionized.
B) Unions in the U.S. have never been very strong or influential when compared with unions in other Western capitalist nations.
C) The influence of the labor movement in America has been increasing.
D) Compared to other Western capitalist nations, the impact of unions in America is tremendous.
E) None of the above

Question 47

The tendency of the American social welfare state is to favor

A) children.
B) the unemployed.
C) the elderly.
D) the poor.
E) the middle class

Question 48

Almost without exception, the business community in America has ________ the creation of a welfare state along European lines.

A) supported
B) opposed
C) created
D) advocated
E) ignored

Question 49

Proponents of welfare reform believed the new welfare system would

A) end welfare dependence.
B) reestablish the primacy of the family in poor communities.
C) improve the income situation of the poor as they enter the job market.
D) help balance the federal budget.
E) All of the above

Question 50

It is often argued that Europe's greater propensity toward welfare states with universal coverage is a result of

A) ethnic and racial homogeneity.
B) federalism.
C) ethnic and racial diversity.
D) greater conservatism.
E) lower taxes.

Question 51

Which of the following regarding the U.S. job market is NOT true?

A) The political power of labor unions is very high.
B) The minimum wage in the U.S. is low compared with average wages.
C) Unemployment compensation is not very generous and limited in duration.
D) Workers are under tremendous pressure to find a job, even at a low wage.
E) All of the above

Question 52

How is the American welfare state different from welfare states in other countries?

A) The U.S. welfare state developed sooner than others in the world.
B) The U.S. welfare state is larger than most others in the world.
C) The elderly do considerably better than the young in the American welfare state.
D) The American welfare state is more redistributive than other welfare states.
E) There are no differences.

Question 53

Unemployment insurance is part of which program?

A) Social security
B) Medicare
C) Public assistance
D) Entitlement
E) Cost of living adjustments

Question 54

The poverty line is criticized for each of the following reasons except

A) government payments should be included in poverty calculations.
B) cost of living differences are not considered in national poverty calculations.
C) the number of consumer goods available to purchase has increased, meaning that people need to buy more than they used to; the poverty rate should be adjusted upwards.
D) the proportion of food costs to the poverty calculation need to be adjusted.
E) All of the above are correct.

Question 55

Which of the following is a major feature of TANF?

A) Families of poor children are no longer guaranteed assistance.
B) Its design and administration have been turned over to the states.
C) States receive block grants from the federal government.
D) The head of every family receiving welfare is required to work within two years of receiving benefits.
E) All of the above

Question 56

The American welfare state covers ________ people than most other welfare states.

A) more
B) more severely ill
C) more drug addicted
D) fewer
E) about the same number of

Question 57

Which of the following are factors that have influenced the American welfare state?

A) Constitutional rules
B) Racial divisions
C) Political culture
D) Weak labor unions
E) All of the above

Question 58

About ________ million Americans have no health insurance coverage.

A) 5
B) 10
C) 47
D) 100
E) 110

Question 59

Most benefits of the American welfare state go directly to the

A) nonpoor.
B) wealthiest 10 percent.
C) poor.
D) largest corporations.
E) middle class.

Question 60

Which of the following is NOT a factor explaining why the American welfare state is the way it is?

A) Constitutional rules
B) Racial and ethnic diversity
C) Political culture
D) The large memberships of poor peoples' interest groups
E) None of the above

Question 61

The United States has an extensive range of safety nets, even though it is premised on limited government and individualism.

Question 62

How we might conclude that the United States is less redistributive than other rich democracies?

A) The United States ranks low on measures of the amount of money spent on social welfare programs and the degree to which they are universal.
B) Most social welfare programs are a patchwork of coverage in the United States.
C) The United States spends the least on social welfare programs.
D) Universal medical coverage is weighed in favor of the elderly in the United States.
E) Maternity leave is not paid leave in the United States.

Question 63

President George W. Bush's social security reform proposal was narrowly defeated on the Senate floor in late 2005.

Question 64

How we might conclude that the United States requires much less of its private employers than other rich democracies?

A) The United States ranks low on measures of the amount of money spent on social welfare programs and the degree to which they are universal.
B) Most social welfare programs are a patchwork of coverage in the United States.
C) The United States spends the least on social welfare programs.
D) Universal medical coverage is weighed in favor of the elderly in the United States.
E) Maternity leave is not paid leave in the United States.

Question 65

Which of the following statements about SCHIP is true?

A) It has been successful extending health care to all children.
B) It has been successful extending health care to only the poorest children.
C) It has been successful extending health care to children not poor enough to qualify for Medicaid.
D) It has been losing support among most members of Congress during the Bush Administration.
E) It is been added to the Medicaid program as a way to increase its reach to children.

Question 66

Which of the following statements is true?

A) The federal government continues to set food stamp benefit levels for individuals.
B) About 20 percent of food stamp recipients are children.
C) About 50 percent of food stamp recipients are elderly.
D) States are fairly uniform in how they distribute food stamp benefits.
E) The food stamp program has been successful in reducing malnutrition in the United States.

Question 67

One structural factor that helps explain the extent and generosity of social safety net programs across countries is the relative size and power of the industrial working class.

Question 68

How we might conclude that the United States covers fewer people than other rich democracies?

A) The United States ranks low on measures of the amount of money spent on social welfare programs and the degree to which they are universal.
B) Most social welfare programs are a patchwork of coverage in the United States.
C) The United States spends the least on social welfare programs.
D) Universal medical coverage is weighed in favor of the elderly in the United States.
E) Maternity leave is not paid leave in the United States.

Question 69

Means-tested programs, such as Temporary Assistance to Needy Families (TANF), distribute benefits to all who pass a civil service exam.

Question 70

The AARP is an interest group that works on behalf of the elderly.

Question 71

A social insurance program is one in which individuals contribute to a trust fund by way of payroll taxes.

Question 72

SCHIP is a government health insurance program administered by the states.

Question 73

Rich, industrialized societies are the most supportive environment for providing welfare and caring for the young, the elderly, the disabled.

Question 74

Among other things, TANF shifted the administration of welfare programs to the states.

Question 75

Means-tested programs distribute benefits on the basis of need to those who can prove that their income is low enough to qualify.

Question 76

Social security reform has failed to succeed in recent years.

Question 77

Which of the following statements about TANF is false?

A) It replaced AFCD in 1996.
B) It ended public assistance as an entitlement program.
C) It shifted responsibility over its administration to the states.
D) It has clearly helped to lift numerous Americans out of poverty.
E) It has reduced the welfare rolls.

Question 78

How we might conclude that the United States favors the elderly more than in other rich democracies?

A) The United States ranks low on measures of the amount of money spent on social welfare programs and the degree to which they are universal.
B) Most social welfare programs are a patchwork of coverage in the United States.
C) The United States spends the least on social welfare programs.
D) Universal medical coverage is weighed in favor of the elderly in the United States.
E) Maternity leave is not paid leave in the United States.

Question 79

Concerning social safety nets, which of the following is a way in which the United States is different from other rich democracies?

A) The American system is much less costly.
B) The American system covers fewer people.
C) The American system favors the elderly.
D) The American system is less distributive.
E) All of the above

Question 80

The Earned Income Tax Credit is designed to

A) allow low-income individuals with children to claim a credit against taxes owed.
B) provide a child tax credit for most tax payers.
C) provide an incentive for families to purchase private health insurance.
D) reduce the number of children eligible for SCHIP.
E) None of the above