Creating a Safety Net

All Americans receive Social Security benefits when they retire, regardless of whether they paid into the program.

• True
• False

What does the Temporary Assistance for Needy Families program provide?

• retirement income for the elderly
• cash to the states to help run their welfare programs
• compensation to all who lose jobs
• cash to workers injured on the job

What is one benefit provided by Social Security?

• medical care for the indigent
• cash transfers to workers injured on the job
• compensation for all who lose jobs
• retirement income for the elderly

In 1996, a new federal welfare program called Temporary Assistance for Needy Families (TANF) began assisting poor families. Which of the following was NOT a provision of TANF?

• direct cash payments to recipients
• work incentives
• lifetime limit of benefits
• state-run welfare programs

Each payday, some of your pay is withheld as payroll deductions for Social Security. What happens to the money that is withheld?

• It is redistributed as cash transfers to workers who are injured on the job.
• It is put into an account under your name to earn interest until you retire.
• It is used to provide medical benefits to Americans over 65.
• It is redistributed as cash transfers to elderly and disabled people

Jeff and Margaret qualify for Section 8 housing, a subsidized housing program from the federal government. What kind of benefit are they receiving?

• cash transfer
• in-kind benefit
• Social Security benefit
• faith-based initiative

Goods and services provided by the government for free or at greatly reduced prices

• in-kind benefits
• welfare
• poverty threshold
• private sector

Government aid to the poor

• welfare
• externality
• poverty threshold
• cash transfers

An income level below that which is needed to support families or households

• welfare
• cash transfers
• poverty threshold
• interest group