Micro-Economics help!!?

[Somoiya]

Hey guys, I need help with these two questions! Please help me out! Thanks!!

A nurse willing to work the midnight to 8 A.M. shift may make more than one who works 8 A.M. to 4 P.M. because of:
A.
market power.
B.
compensating differentials.
C.
efficiency wages.
D.
discrimination.



Which of the following American welfare programs is an in-kind benefit that is not means-tested?
A.
food stamps
B.
Medicaid
C.
Supplemental Security Income
D.
Medicare

[Evren Dogan]

The first one is an example of compensating differentials (B). This basically refers to the relationship between wage and the unpleasantness of the work. The nurse working from midnight to 8 AM will earn more because there's less people that want to work that shift (because the times are so bad), and the hospital will want to compensate for the undesirable working conditions.

I think the answer is Medicaid. It's an in-kind benefit program and it is means-tested.

Hope this helped!

[Aleconomixt]

B.
compensating differentials.

For the second, i was just curious and searched.
A.
food stamps http://en.wikipedia.org/wiki/Means_test....started in great depression
B.
Medicaid http://en.wikipedia.org/wiki/Means_test....started in 1960
C.
Supplemental Security Income http://www.eou.edu/socwelf/lecture/programs.htm
D.
Medicare http://tucsoncitizen.com/medicare/2012/0...s-testing/

[Anjaree]

1 B is obvious. The night shift means over time, it is not normal working time. So it has to be compensated.
2. In the US, the answer is D. Since 1960s, it has been the mean test for Medicaid and Food Stamp. Since 1982, it has been the mean test for social security. But Medicare has never needed a mean test so far.