Assume under an income maintenance program that the basic benefit

Assume under an income maintenance program that the basic benefit

Questions 49 and 50 are based on the following information: Assume under an income maintenance program that the basic benefit (income guarantee) is $9000 and the benefit-reduction rate is 50%.

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49. If a family has an earned income of $3000 per year, its subsidy payment will be:

a. $6000 b. $7500 c. $9000 d. $0

50. The break-even level of income is:

a. $4500 b. $6000 c. $9000 d. $18,000

51. Suppose an income maintenance program offers a basic benefit of $7500 per year and the benefitreduction rate is 33 1/3%. The break-even level of income is then:

a. $2500 b. $7500 c. $15,000 d. $22,500

52. The Personal Responsibility and Work Opportunity Act of 1996:

a. moved control over welfare spending from states to the federal government

b. removed lifetime limits on welfare eligibility

c. with few exceptions, requires welfare recipients to work after two years of receiving assistance

d. provided immediate welfare benefits to qualified immigrants

53. In the years following enactment of welfare reform in 1996, welfare case loads:

a. dropped slightly c. dropped by more than 50%

b. increased slightly d. increased by almost 50%

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