Q1: Spending on the food stamp program doubled during the first Obama administration, reaching $82 billion per year. People wo received additional aid under the program surely benefitted from it, but people wo had to pay for the program just as surely were made worse off. On what basis would you decide how much we should spend on food stamps? Why don't we simply have food stamps for everyone? Q2: What would happen to the number of disabled people if Social Security disability payments were made subject to income taxes? Explain.

Q3: Many government "safety net" programs (such as food stamps and unemployment insurance) are intended in part to soften the blow caused by adverse circumstances beyond the power of the individual (such as economic downturns). How do such programs also affect people's incentives to work hard to improve their economic outcomes? Considering all aspects of these programs, how are they likely to affect the degree of economic mobility?