The Food Stamp program provides
a. quality labels on food
b. cash transfers to the poor
c. cash transfers to the elderly
d. vouchers that can be redeemed for food
e. food deliveries to the elderly
QUESTION 2The individual supply curve of labor is backward bending because the substitution effect offsets the income effect at higher wage rates.
a. True
b. False
QUESTION 3The qualifying income level for Medicaid
a. is 10,000
b. is 14,000
c. is set separately by each state
d. is set yearly by the Bureau of the Census
e. varies inversely with the number of children in the family
QUESTION 4As the wage rate increases, the substitution effect causes workers to supply more time to market work and the income effect causes them to supply less time to market work.
a. True
b. False
QUESTION 5Temporary Assistance for Needy Families and Supplemental Security Income are
a. cash transfers for income assistance
b. cash transfers for social insurance
c. in-kind transfers for income assistance
d. in-kind transfers for social insurance
e. intended to provide health care for the poor
QUESTION 6If the substitution effect dominates the income effect, then an increase in the wage rate will increase the quantity of labor supplied by an individual.
a. True
b. False
QUESTION 7The federal government's earned-income tax credit
a. provides support only for elderly and disabled poor
b. represents a type of in-kind transfer program
c. provides food assistance to the working poor
d. reduces taxes if the poor buy housing
e. offers an income tax refund to the working poor greater than the taxes they paid
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