01:220:102 Study Guide - Final Guide: Negative Income Tax, Unemployment Benefits, Physical Capital

• School: Rutgers University
• Department: Economic
• Course: 01:220:102
• Professor: M.Elgawly

Document Summary

Means-tested program- benefitting only individuals and families whose income falls below a certain level. In-kind payment- a benefit in the form of goods and services (ie. food stamp). Negative income tax- a government program that supplements the income of low-income working families. Social security- guaranteed retirement income through a payroll tax. Unemployment insurance- provision for workers who lose their job about 35% of the previous salary for 26 weeks. Private health insurance- each member of a large pool of individuals pays a fixed amount annually to a private company that agrees to pay most of the medical expenses of the po0ols members. Employment-based health insurance- insurance that a company provides to its employees. The advantage is that employees will contain a represented mix of healthy and unhealthy employees, so medical bills average out. The economy"s factors of production: physical capital pp&e, etc, human capital improvement in labor produced by education and knowledge in the workforce.