The major social insurance program in the United States is
a. Social Security
b. Temporary Assistance for Needy Families
c. Medicare
d. Medicaid
e. food stamps
QUESTION 2Abby maximizes utility by allocating time among leisure, market work, and nonmarket work so that the
a. total utility of each is equal
b. average utility of each is equal
c. total utility per hour of each is equal
d. marginal utility per hour of each is equal
e. maximum amount of goods and services can be acquired
QUESTION 3Poverty is
a. a relative concept
b. an absolute concept
c. more prevalent in North American countries than in other areas
d. an insufficient income level to purchase all necessities
e. the same in all countries
QUESTION 4An extra hour of market work is an attractive use of your time
a. because of the utility generated by goods made possible through the extra work
b. solely because of the personal satisfaction it generates
c. when the disutility of income generated by the extra work exceeds the utility
d. when the net utility of the extra goods made possible and the extra work is greater than zero
e. only when you do not enjoy leisure time
QUESTION 5Since most welfare programs are administered by the federal government, there is uniformity in both eligibility and the dollar value of benefits in a state by state comparison.
a. True
b. False
QUESTION 6Work is an attractive use of your time
a. if the utility of consumption made possible by work exceeds the disutility of work itself
b. whenever you are paid a wage equal to or greater than the minimum wage
c. whenever you derive utility from the consumption made possible through work
d. unless time spent working is a source of disutility
e. only when marginal utility is negative for an additional unit of leisure
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