Which statement about social insurance is correct? A) It refers to charity provided only to the elderly. B) It provides housing only to the unemployed. C) It is government-provided... Which statement about social insurance is correct? A) It refers to charity provided only to the elderly. B) It provides housing only to the unemployed. C) It is government-provided financial funding for bad outcomes such as unemployment and illness. D) It is financial assistance targeted specifically for only long-term poverty.
Understand the Problem
The question is asking which statement about social insurance is correct. It presents four options, and the goal is to identify the accurate definition or characteristic of social insurance from these choices.
Answer
Social insurance is government-provided financial funding for adverse outcomes such as unemployment and illness.
The correct statement is that social insurance is government-provided financial funding for adverse outcomes such as unemployment and illness.
Answer for screen readers
The correct statement is that social insurance is government-provided financial funding for adverse outcomes such as unemployment and illness.
More Information
Social insurance programs are intended to provide a safety net for individuals who face certain life risks, like losing a job or facing a medical issue. These programs are generally funded by taxes and can include unemployment insurance, health insurance, and pension plans.
Tips
A common mistake is to confuse social insurance with charity or assistance only aimed at specific groups like the elderly or the unemployed. Social insurance is broader, covering various groups affected by adverse conditions.
Sources
- Social Insurance: Connecting Theory to Data | MIT Economics - economics.mit.edu
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