Asked by William Burgan on Jul 14, 2024
Verified
Social insurance is distinguished from public assistance, or welfare, by the fact that
A) all social insurance benefits are paid in cash, while all public assistance benefits are paid in kind (food, housing, medical care) .
B) an individual acquires a right to social insurance benefits by meeting objective eligibility criteria, while public assistance benefits are determined according to individual need.
C) the total amount paid in benefits is much larger in the public assistance programs than in the social insurance programs.
D) payroll taxes are used to finance public assistance programs, while general revenues are used to finance social insurance programs.
Objective Eligibility Criteria
The predefined and transparent standards used to determine an individual's or entity's qualification for a program or benefit.
Public Assistance
Government-provided support aimed at individuals or households with inadequate or no income.
Social Insurance
A government-sponsored program aimed at providing financial assistance to individuals in events of unemployment, disability, or old age.
- Recognize the unique characteristics that differentiate social insurance from public assistance schemes.
Verified Answer
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Austin DeBerryJul 20, 2024
Final Answer :
B
Explanation :
Social insurance programs are based on objective eligibility criteria, such as age or employment history, and individuals earn the right to benefits by meeting these criteria. In contrast, public assistance (welfare) programs are based on individual need.
Learning Objectives
- Recognize the unique characteristics that differentiate social insurance from public assistance schemes.