Which of the following is NOT a category of social policy in the modern U.S. welfare state?

• A. Medicare
• B. Contributory programs
• C. Noncontributory programs
• D. The tax expenditure system

Answer: (D)

Understanding how social policy is categorized helps here. Medicare is a social policy program—the health insurance program for many seniors and disabled people, financed by payroll taxes and premiums. Contributory programs are the social insurance side, funded by workers’ contributions. Noncontributory programs are means-tested aid financed by general revenues. The tax expenditure system, however, isn’t a category of social policy itself; it’s a financing mechanism that uses the tax code—through deductions, exclusions, and credits—to subsidize policy goals without direct spending. It supports social objectives, but it isn’t a stand-alone policy category, which is why this item identifies it as not belonging to the policy categories.