Question 26

Which statement does not describe a system of tuition vouchers?

	1.	Public and private schools would compete for students wielding vouchers.
	2.	Parents would be free to choose schools according to personal values.
	3.	Some schools might charge more than the face value of the voucher, requiring parents to pay the difference.
	4.	Vouchers would force parents to choose schools outside of their neighborhood.

Question 27

Which is the biggest social insurance program in terms of expenditures?

	1.	Unemployment insurance
	2.	OASDI
	3.	Medicare
	4.	Disability insurance

Question 28

The federal income tax began as a result of

	1.	a constitutional amendment.
	2.	an act of Congress.
	3.	the bill of rights.
	4.	an executive order.

Question 29

If social security coverage induces a person to retire early, this is an example of

	1.	social risk
	2.	moral hazard
	3.	adverse selection
	4.	marginal disadvantage

Question 30

The precept that people who are equals in all relevant ways should be taxed equally is known as

	1.	horizontal equity.
	2.	specifiic equalitarianism.
	3.	nondistortionary taxation.
	4.	Rawlsian justice