The market mechanism might leave some people with too little income and others with too much. The government uses taxes and transfers to redistribute income more fairly.

Income Transfers are payments to individuals for which no current goods or services are exchanged (e.g., Social Security, welfare, unemployment benefits).

Program	Recipient Group	Number of Recipients	Value of Transfers
Social Security	Retired and disabled workers	70 million	$ 1,156 billion
Medicare	Individuals over age 65	61 million	$ 820 billion
Medicaid	Medically needy individuals	77 million	$ 650 billion
Unemployment compensation	Unemployed workers	18 million	$ 150 billion
Food stamps	Low-income households	43 million	$ 105 billion
Earned Income Tax Credit	Low-wage workers	25 million	$ 62 billion
Temporary Aid to Needy Families	Low-income families	3 million	$ 30 billion

Calculate the average benefit a Medicaid recipient receives.

Instructions: Round your response to the nearest dollar.

Answer rating: 100% (QA)

To calculate the average benefit a Medicaid recipient receives we ... View the full answer