A major difference between social insurance and welfare is that social insurance

Question

Quizplus · Accepted Answer

Social insurance programs such as Social Security and Medicare are typically financed by earmarked payroll taxes to provide specific benefits, while welfare is usually financed out of general tax revenues and is means-tested, meaning recipients must demonstrate financial need. Option A is false as welfare benefits are available to people in different socioeconomic backgrounds, and option B is incorrect as it is the opposite of the correct explanation. Lastly, option D is incorrect as welfare does provide cash transfers, such as Temporary Assistance for Needy Families (TANF).

A Major Difference Between Social Insurance and Welfare Is That