Module 40

What is true of entitlement programs?

- Congress sets requirements for those eligible to receive funds. - Examples include Social Security and Medicare. - Some entitlement programs, like Medicaid and unemployment insurance, are managed by state governments even though they receive federal funds.

What is true about the Patient Protection and Affordable Care Health Act (health care reform)?

- It requires all Americans to buy health insurance (or pay a penalty). - It assists low-income individuals who cannot afford insurance. - It requires insurance companies to provide coverage to people with pre-existing medical conditions.

What is true about the Social Security program?

- This program provides modest pensions. - It is an example of an entitlement program. - Retirees are eligible for this social program.

Approximately what percentage of the federal government budget is spent on social services?

55%

What is an argument against social services to reduce poverty?

By receiving government funding, people are less motivated to work hard.

What best summarizes the progressivity of different types of state and local taxes?

Income taxes are progressive, and sales and excise taxes are regressive. Overall, state taxes are regressive.

A poll tax is a tax imposed on an individual who pays a fixed amount of money regardless of income (say each person pays $1,000). What describes a poll tax?

Regressive