Programs in which anyone who meets the criteria is eligible to participate are called Contributory programs. Contribution-based systems, such as those seen in Social Security, Medicare, and unemployment insurance, require contributors to the program for beneficiaries to be eligible. The federal government has a wide range of entitlement programs that are all intended to give individuals financial assistance.
<h3>
What is a contributory program?</h3>
The majority of people who hear the term immediately conjure up contributions-based schemes like Social Security or social insurance. In exchange for receiving financial benefits once they reach retirement age, these welfare programs in the US demand that workers contribute a percentage of their salary.
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What is the difference between contributory and noncontributory programs?</h3>
- Contributory - Plans for group life insurance where the company pays the majority of the premium and the employee "contributes" a portion of it those.
- Noncontributory - Group life insurance policies are ones in which the company pays the full premium cost and the employee makes no payment toward the premiums.
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Korean society was strongly influenced by The Chinese model of society.
<u>Problem of classical economics pointed by John Maynard keynes:</u>
He was complaining about economists who believed that unemployment would be reduced or eliminated after the recession if the market is not somehow stimulated or steered in right direction. He agreed that this strategy can work in long run, however, in short run, it would pose some problems due to people’s nature of hoarding money and banking preferences.
The classical economists believed that in the midst of a great depression and recession, the government should not do much and the economy would recover on its own which may take decades for such to happen.
The correct answer is D. - JUMPING TO Conclusions
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