Question : 11) Social Security a ________ program paid for by ________. A) : 1226350

11) Social Security is a ________ program paid for by ________.

A) compulsory; payroll taxes

B) compulsory; government money

C) voluntary; payroll taxes

D) voluntary; income taxes

E) compulsory; voluntary taxes on income

12) Social Security and unemployment compensation

A) are paid only to the poorest households.

B) are both funded by income taxes.

C) are distributed by individual states.

D) both redistribute income.

E) make the distribution of income less equal.

13) ________ is a component of welfare programs.

A) A progressive income tax

B) Unemployment compensation

C) Medicaid

D) Social Security payroll taxes

E) The negative income tax

14) Looking at the results of government income redistribution programs, we find that the income received by the

A) lowest 20 percent of households is almost unchanged because most don’t work.

B) highest 20 percent is left unaffected because they are able to shelter income from taxes.

C) lowest 20 percent increases and the income received by the highest 20 percent decreases.

D) lowest 20 percent increases somewhat but the income received by the next 20 percent increases the most.

E) lowest 20 percent decreases because of government taxes and the income received by the highest 20 percent increases because of government subsidies.

15) Passing the TANF welfare program has

A) has made welfare programs more open-ended entitlement programs.

B) limited assistance to five years.

C) eliminated work and public service requirements.

D) hurt economic incentives to work.

E) made it into a negative income tax program.

16) A negative income tax is a system that, in part,

A) taxes lower-income households at a higher rate.

B) taxes higher-income households at a higher rate.

C) guarantees a minimum level of income for all households.

D) gives money from taxes paid by the poor to wealthy investors.

E) guarantees a minimum level of taxation for all households.

17) Which of the following characterizes the negative income tax concept?

A) It is a flat tax that lower-income households do not pay.

B) It is a progressive tax structure with enough deductions to provide refunds to some.

C) It is a regressive tax with low-income earners getting a refund back when taxes are filed.

D) It is a guaranteed annual income with earned incomes taxed at a flat rate.

E) It is an income tax that eliminates all the inefficiency that occurs with the current tax system.

18) A negative income tax

A) is a regressive income tax.

B) is currently in use in the United States.

C) makes the redistribution of income efficient.

D) provides every household with a guaranteed minimum annual income.

E) cannot be enacted in the United States because it is unconstitutional.

19) With a negative income tax that has a $10,000 guaranteed income and a 25 percent tax rate, a household that has a market income of $4,000 has a total income of

A) $15,000.

B) $14,000.

C) $13,000.

D) $10,000.

E) $7,000.

20) Which of the following is a way income is redistributed in the United States?

i.subsidizing services

ii.income taxes

iii.income maintenance programs

A) i only

B) ii only

C) ii and iii

D) i and iii

E) i, ii, and iii