Medicare and Social Security are examples of
A)transfer payment programs.
B)public goods.
C)programs that do not respond to rational economic incentives.
D)the efficient allocation of resources under a free market system.

Question

Quizplus · Accepted Answer

Medicare and Social Security are transfer payment programs, which distribute income from one group of individuals (taxpayers) to another group (beneficiaries). They are not public goods, which are non-excludable and non-rival in consumption. While they may not respond to rational economic incentives in the way that private goods do, they are still designed to address market failures and provide a social safety net. They are not an example of the efficient allocation of resources under a free market system.

Medicare and Social Security Are Examples of