Which term best describes a set of government-administered insurance programs not based on need?

Which term best describes a set of government-administered insurance programs not based on need?

• A. Medicare
• B. Unemployment Insurance
• C. Social Insurance
• D. Social Security Act

Answer: (C)

Social Insurance describes government programs that are funded by workers’ contributions and are designed to provide benefits based on prior earnings or contributions, not on current financial need. This includes programs like Social Security and Medicare, as well as Unemployment Insurance, all of which are financed through payroll taxes and participation rather than means testing. The Social Security Act is the law that created these programs, but the set itself is Social Insurance.

Social Insurance describes government programs that are funded by workers’ contributions and are designed to provide benefits based on prior earnings or contributions, not on current financial need. This includes programs like Social Security and Medicare, as well as Unemployment Insurance, all of which are financed through payroll taxes and participation rather than means testing. The Social Security Act is the law that created these programs, but the set itself is Social Insurance.