a. The essential difference between social insurance and public assistance programs is that social insurance programs provide

multiple choice 1

• benefits for those who are unable to earn income, whereas public assistance programs provide aid to those who are retired or suffering from temporary distress.
• income support and medical care, whereas public assistance programs only provide medical care.
• medical care, whereas public assistance programs provide income support.
• aid to those who are retired or suffering from temporary distress, whereas public assistance programs provide benefits for those who are unable to earn income.

b. The earned-income tax credit is considered a public assistance program because

Multiple choice 2

• it provides benefits to those who are unable to work and who do not qualify for other forms of aid.
• it is financed primarily out of federal payroll taxes.
• it is targeted at low-income working families.
• it is targeted at workers age 65 and older.