Suppose a person earns $500 a month. A social assistance program with a grant amount of $1,000 a month and a clawback of 100% would result in a social assistance payment to the person of $500, because 100% of the person's earnings are used to reduce the assistance payment from its maximum amount. True False

Suppose a person earns $500 a month. A social assistance program with a grant amount of $1,000 a month and a clawback of 100% would result in a social assistance payment to the person of $500, because 100% of the person's earnings are used to reduce the assistance payment from its maximum amount. True False

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter33: Income, Income Distribution, And Poverty

Section: Chapter Questions

Problem 11E: What is the difference between in-kind and cash transfers? Winch might increase the utility of the...

See similar textbooks

Similar questions

Theoretically and graphically explain the effect of Benazir income support program on the welfare of the consumers.
No written by hand solution Consider an income guarantee program with an income guarantee of $5,000 and a benefit reduction rate of 40%. A person can work up to 2,000 hours per year at $10 per hour. a. Draw the person’s budget constraint with the income guarantee. b. Suppose that the income guarantee rises to $7,500 but with a 60% reduction rate. Draw the new budget constraint c. Which of these two income guarantee programs is more likely to discourage work? Explain.
The breakeven level of income is the O Level of income above which a person loses all welfare benefits. O Lowest level of income at which in-kind benefits are no longer necessary. O Amount of income a person must have to reach the poverty line. O Level of income at which an individual household begins to have some discretionary income.
How can a program that subsidizes housing for low income families avoid creating a poverty trap? O Have the benefits reduce only gradually as family income increases All of these could reduce help avoid the poverty trap but at a cost O Limit the amount of time people can use the benefit Create work requirements
Suppose a person earns $500 a month. A social assistance program with a grant amount of $1,000 a month and a clawback of 90% is implemented. What would be the payment the person receives from the program and what's the total amount of money they person will have to their disposal? The payment from the assistance program is $450 and the total amount of money the person has to their disposal is $950. The payment from the assistance program is $550 and the total amount of money the person has to their disposal is $1000. The payment from the assistance program is $550 and the total amount of money the person has to their disposal is $1050. The payment from the assistance program is $950 and the total amount of money the person has to their disposal is $1450.
What are the stipulations of the Temporary Assistance for Needy Families benefits? Select two correct responses. Select all that apply: States must use all of the money in the budget for them to get additional funds . O States must impose work requirements. States must also ensure that no one can receive TANF benefits with federal money for more than 5 years over his or her lifetime. O Federal government must increase the rate each year.
How do entitlements differ from welfare?
5 Which philosopher's ideas would promote policies that favor the greatest use of income redistribution? O Jagdish Bagwati O Max Lorenz O Robert Nozick O John Rawls Unit 7- Chapter 1..xlsx 3 Unit 7- chapter 1..xlsx Topic 2 (2).docx Topic 2 (1).docx 11:06 PM 73°F ENG 12/8/2021 SU brt sc delete end F12 LL f8 144 63 15 backspace unu lock D. 55 enter A. () pause ↑ shift
Suppose a single parent can work up to 16 hours per day at a wage rate of$10 per hour. Various income maintenance programs have been developed to assurea minimum level of income for low-income families. Aid to Families withDependent Children (AFDC) was established with the Social SecurityAct of 1935. The family was given an income subsidy depending on family size. Under this program, the family’s benefi t was reduced by $1 forevery dollar earned. Suppose the maximum daily subsidy for the singleparent described in this problem is $40.a. Draw the daily budget constraint without program participation forthe single parent described in this problem.b. On the same graph, draw the daily budget constraint under AFDC forthe single parent described in this problem.c. What effect does this program have on the incentive to work? Explain.
17. Which of the following statements applies to the Social Security program? A. Benefits are paid on the basis of needB. It provides cash assistance and services to families with dependent childrenC. It is financed by payroll taxes on employees and employersD. Benefit levels vary throughout the nation because the system is administered by the individual states
A provision included in group disability income contracts bul NOT included in an individual disability income contract is the: A.entire contract provision B.rehabilitation provision C.probationary period D.cost of living adjustment
Question 2 Suppose a person earns $500 a month. A social assistance program with a grant amount of $1,000 a month and a clawback of 90% is implemented. What would be the payment the person receives from the program and what's the total amount of money they person will have to their disposal? The payment from the assistance program is $450 and the total amount of money the person has to their disposal is $950. The payment from the assistance program is $550 and the total amount of money the person has to their disposal is $1000. The payment from the assistance program is $550 and the total amount of money the person has to their disposal is $1050. The payment from the assistance program is $950 and the total amount of money the person has to their disposal is $1450. Question 3 Suppose a person earns $1200 a month and welfare assistance program pays a maximum grant of $1000 and has a clawback of 25%. Is the person eligible for the program and if so what's the person's payment from the…