9. A variety of government support programs in the U.S., focused specifically on the poor include the following:

a. Temporary Assistance for Needy Families (TANF)

b. Aid to Families with Dependent Children (AFDC)

c. Supplemental Nutrition Assistance Program(SNAP)

d. all of the above

Booster class

Microeconomics

Skill

Understanding Poverty

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Raushan RajLv8

1 Nov 2020

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The poverty threshold for a household with one person in 2010 was:

	A.	about $25,600.
	B.	about $21,100.
	C.	about $11,300.
	D.	about $38,000.

Compared to a generation ago, public aid programs that are likely to benefit families have received:

	A.	less funding.
	B.	about the same level of funding.
	C.	no funding.
	D.	more funding.

There is considerable ________ among the quintiles of the distribution of income, with many families moving from ________ and others moving from ________ quintiles.

	A.	immobility; lower to lower; higher to higher
	B.	immobility; lower to higher; higher to lower
	C.	stability; lower to higher; higher to higher
	D.	mobility; higher to lower; lower to higher

The ________ is widely used to measure income inequality.

	A.	median household income
	B.	ability-to-pay principle
	C.	poverty rate
	D.	Gini coefficient

Medicaid is funded by:

	A.	private charities.
	B.	federal and state governments.
	C.	state governments only.
	D.	the federal government only.

Private health insurance is funded by:

	A.	members of a large pool of individuals, each paying a fixed premium to a private company that agrees to pay most of the medical expenses of the members.
	B.	tax contributions to Medicare.
	C.	the government.
	D.	people who are extremely ill who pay very high premiums.

n the United States, the government pays _______ of all medical costs.

	A.	between 70% and 80%
	B.	approximately 50%
	C.	100%
	D.	less than 20%

Which of the following programs represents in-kind transfers?

	A.	Medicaid
	B.	Temporary Assistance for Needy Families
	C.	the Earned Income Tax Credit
	D.	Social Security

Children raised in poverty have a greater likelihood of living in poverty as adults than do those raised in nonpoor families, because low income is highly correlated with higher:

	A.	high school dropout rates.
	B.	high school dropout rates, risk of mental problems and behavioral disorders, and with higher rates of illness and hospitalization.
	C.	risk of mental problems and behavioral disorders.
	D.	rates of illness and hospitalization.

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14. Consider the following statements with respect to Medicaid, a joint health insurance program between both the states and the federal government.

a. It provides medical insurance for certain low-income people, including those below the poverty line, with a focus on families with children, the elderly, and the disabled.

b. About one-third of Medicaid spending is for low-income mothers with children.

c. While an increasing share of the program funding in recent years has gone to pay for nursing home costs for the elderly poor.

d. All of these are true.

For years the U.S. dairy industry has claimed that Canadian dairy producers are heavily subsidized through the countryâs supply management program. This argument has been a key point in trade negotiations as the U.S. claims that the supply management system, and the Class & pricing system in place, creates an unfair playing field. In a new report, Canadians have suggested that perhaps the U.S. dairy industry should examine its own subsidy programs before making accusations. The 588-page report commissioned by Dairy Farmers of Canada examined the role subsidies play in the U.S. dairy market. According to the report, 73% of the returns received by U.S. dairy farmers in 2015 were a result of dairy farm subsidies, such as the Margin Protection Program (MPP), the Supplemental Nutrition Assistance Program (SNAP) and others. That amounts to about $12.06 per cwt. âOne of the things we are seeing is that the way dairy industries are supported on both sides of the border are different,â Haney says. âCanada on the front end, is clearly supported through the quota system. In the U.S., itâs more through other means like MPP, SNAP and so forth.â âThe Canadians should realize that the U.S. is not over subsidized, but has a tremendous safety net that will give larger producers confidence to expand production knowing they have revenue assurance and other industry backups,â Wiesemeyer says, especially with the update to programs recently announced in the newly approved spending package. âThat will be the story over the next 3 to 5 years in the U.S. dairy market. Adapted from www.milkbusiness.com (October 2018)

Answer the following questions: Identify the type of restriction represented by the milk subsidy in the U.S. Use the Extract to provide a justification for your choice. (5 marks)

To settle the trade dispute in NAFTA both the U.S. and Canada agree to remove the subsidy on milk. Discuss the impact of this on the U.S. milk market. Identify the pros and cons aswell as provide advice to the government.(15 marks)