Chapter 16.2, Problem 1R

To determine

To ascertain the significance of public goods, income redistribution, social insurance program, social security, workers’ compensation. Public assistance program, welfare, supplemental security income, Temporary Assistance for Needy Families, Medicaid externalities.

Explanation of Solution

Public goods, it contributes to the mutual awareness of individuals and to a kind of exchange between individuals that is less demanding than mutual recognition, but is nevertheless a form of interconnection that is important for citizens.

Income redistribution, the distribution of income is extremely important for development, because it influences the unity of society, determines the level of poverty for any given average per capita income and the impact of growth on poverty reduction, and also affects the health of people.

Social insurance program, Public insurance scheme which offers multiple economic problem (e.g. loss of income due to disability, old age or unemployment) and which needs participation.

Social security, Provides an income base that employers can rely on to finance their retirement. It also provides vital social insurance protection to disabled workers and to the family’s member whose income earnersdies.

Workers ‘compensation; because insurance provides financial benefits to employees experiencing work-related injuries or illness to cover medical expenses and loss of salary.

Public assistance program, At least a minimum degree of economic protection should be given to those in need. Public assistance services supplement other economic support programs by providing basic care to the vulnerable for whom incentives are either not available or are insufficient.

welfare, is vital because it helps people support themselves before a new job comes, there are several different services that come with welfare to help the recipients get off welfare, and welfare helps to minimize the poverty rate.

Supplemental security income, The system provides benefits to people with disabilities and to children with reduced income and wealth. SSI payments are also available to people 65 years of age and older without disabilities who meet the financial requirements.

Temporary Assistance for Needy Families, Strengthening families with little to no income will help them meet their basic needs, and provide a base for their children to develop and prosper. It can also provide access to economic opportunities and work supports for parents that can help them realize their full potential.

Medicaid externalities. Because it reduces the likelihood that you are mostly infectious with their disease. People receiving healthcare from a positive externality of others. Those opting to buy coverage are also affected by healthcare prices.

Economics Concept Introduction

Introduction: