Which of the following would be a good example of a government program that provides an "indexed" social benefit?
A)a federally-run program that provides small business owners who hire a military veteran with a cash payment of $2,500 for every six months of the program's operation
B)a local government program that provides low-income families with a benefits card that can be used to purchase $5,000 of groceries during every year of the program's operation
C)a federally-run program that provides $750 to low-income families in the first year of implementation and that increases payments by 1.5 percent in each subsequent year of the program's operation
D)a state government program that provides $750 every year to low-income families for every month of the program's operation

Question

Quizplus · Accepted Answer

An indexed social benefit is one that increases or decreases based on a predetermined formula, such as inflation or changes in the cost of living. Choice C fits this definition as it provides a set amount in the first year but increases the payment by 1.5 percent each subsequent year, making it an indexed social benefit. The other choices do not have an indexed benefit.

Which of the Following Would Be a Good Example of a Government