Question 1

In the US,is it more likely that someone will become a millionaire by making money on his/her own or by inheriting a fortune?

Accepted Answer

Making mon...

Question 2

Would the maximin criterion achieve perfect income equality?

Accepted Answer

A)   Yes.There would be no way to reallocate resources to raise the utility of the poor.
B)   Yes.The maximin criterion would eliminate poverty.
C)   No.It is impossible for complete equality to benefit the worst-off people in society.
D)   No.Complete equality would reduce incentives to work,which would reduce total income,which would reduce the incomes of the worst-off people in society.E) A) and C)
F) A) and B)

Question 3

Table 20-2
Percentage of Before-Tax Income Received by Families in Hapland
 
-Refer to Table 20-2.According to the table,from 1950 to 2000,the Hapland income distribution became

Accepted Answer

A)   less equal.
B)   more equal.
C)   more equal at the lowest level of income but less equal at highest level of income.
D)   less equal at the lowest level of income but more equal at highest level of income.E) All of the above
F) A) and D)

Question 4

Table 20-1
Distribution of Income in Imagination
 
-Refer to Table 20-1.If the poverty rate in Imagination is 10%,what is the poverty line?

Accepted Answer

A)   $0
B)   $18,000
C)   $36,000
D)   $54,000E) B) and C)
F) All of the above

Question 5

The poverty rate is the percentage of the population that have a family income level below the

Accepted Answer

A)   income maintenance threshold.
B)   poverty line.
C)   bottom quintile of the income distribution.
D)   minimum wage.E) C) and D)
F) A) and B)

Question 6

In comparison to the average poverty rate,

Accepted Answer

A)   children and the elderly are more likely to be poor.
B)   children and the elderly are less likely to be poor.
C)   children are more likely to be poor,but the elderly are less likely to be poor.
D)   children are less likely to be poor,but the elderly are more likely to be poor.E) None of the above
F) All of the above

Question 7

Table 20-4
  Source: U.S.Bureau of Census
-Refer to Table 20-4.In 2007,the top fifth of families have

Accepted Answer

A)   almost 15 times as much income as the bottom fifth of families.
B)   96.6% more income than the bottom fifth of families.
C)   50.3% more income than the bottom fifth of families.
D)   46.9% more income than the bottom fifth of families.E) A) and B)
F) B) and D)

Question 8

In a typical 10-year period,about one in four families falls below the poverty line in at least one year.What percentage of families are poor for eight or more years?

Accepted Answer

The answer of In a typical 10-year period,about one in...

Question 9

The elderly represent the largest demographic group in poverty.

Accepted Answer

A) True 
 B)False

Question 10

According to the doctrine of liberalism,principles of justice are the result of

Accepted Answer

A)   fair agreement and bargain.
B)   command-and-control policies.
C)   domination of the powerful by the weak.
D)   workers owning the factors of production.E) B) and C)
F) A) and D)

Question 11

Table 20-9
Poverty Thresholds in 2002,by Size of Family and Number of Related Children Under 18 Years
[Dollars]
  Source: U.S.Bureau of the Census,Current Population Survey.
-Refer to Table 20-9.What is the poverty line for a family of six with three children?

Accepted Answer

A)   $21,469
B)   $24,797
C)   $25,738
D)   $28,718E) B) and D)
F) B) and C)

Question 12

Table 20-9
Poverty Thresholds in 2002,by Size of Family and Number of Related Children Under 18 Years
[Dollars]
  Source: U.S.Bureau of the Census,Current Population Survey.
-Refer to Table 20-9.What is the poverty line for a family with one 68-year-old adult and one child?

Accepted Answer

A)   $8,628
B)   $9,359
C)   $12,353
D)   $12,400E) B) and D)
F) A) and C)

Question 13

Critics argue that a disadvantage of minimum-wage laws is that they do not effectively target the working poor because many minimum-wage workers are the teenage children of middle-income families.

Accepted Answer

A) True 
 B)False

Question 14

Libertarians believe that the government should enforce individual rights to ensure that all people have the same opportunities to use their talents to achieve success.

Accepted Answer

A) True 
 B)False

Question 15

Explain the relationship between labor earnings and the distribution of income.

Accepted Answer

A person's earnings depend on the supply...

Question 16

Since the early 1970s,average incomes have

Accepted Answer

A)   increased,which has reduced the poverty rate.
B)   increased,while the poverty rate increased slightly.
C)   decreased,while the poverty rate has remained unchanged.
D)   remained unchanged,while the poverty rate has decreased.E) A) and B)
F) A) and C)

Question 17

Based on U.S.income data from 2008,the top fifth of all families received

Accepted Answer

A)   the same share of income as the bottom fifth.
B)   twice as much income as the bottom fifth.
C)   approximately 5 times more income than the bottom fifth.
D)   more than 10 times more income than the bottom fifth.E) A) and B)
F) B) and D)

Question 18

"The government should punish crimes and enforce voluntary agreements but not redistribute income." This statement is most closely associated with which political philosophy?

Accepted Answer

A)   liberalism
B)   utilitarianism
C)   libertarianism
D)   welfarismE) C) and D)
F) A) and D)

Question 19

Temporary Assistance for Needy Families (TANF)is an example of a negative income tax program.

Accepted Answer

A) True 
 B)False

Question 20

Refer to Scenario 20-1.Which group would be most opposed to the switch from the current tax policy to the new progressive policy?

Accepted Answer

A)   Utilitarians,because they want to maximize the utility to the worst-off person in society
B)   Liberals,because of the maximin criterion
C)   Libertarians,because they believe in diminishing marginal utility
D)   All three groups would oppose the switch equally.E) C) and D)
F) A) and B)

Exam 20: Income Inequality and Poverty

Explain the relationship between labor earnings and the distribution of income.

Correct AnswerverifiedA person's earnings depend on the supply...View AnswerShow Answer

Based on U.S.income data from 2008,the top fifth of all families received

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"The government should punish crimes and enforce voluntary agreements but not redistribute income." This statement is most closely associated with which political philosophy?

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Table 20-2 Percentage of Before-Tax Income Received by Families in Hapland -Refer to Table 20-2.According to the table,from 1950 to 2000,the Hapland income distribution became

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Table 20-4 Source: U.S.Bureau of Census -Refer to Table 20-4.In 2007,the top fifth of families have

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The poverty rate is the percentage of the population that have a family income level below the

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In the US,is it more likely that someone will become a millionaire by making money on his/her own or by inheriting a fortune?

Correct AnswerverifiedMaking mon...View AnswerShow Answer

Table 20-1 Distribution of Income in Imagination -Refer to Table 20-1.If the poverty rate in Imagination is 10%,what is the poverty line?

Correct AnswerverifiedShow Answer

Would the maximin criterion achieve perfect income equality?

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Temporary Assistance for Needy Families (TANF)is an example of a negative income tax program.

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The elderly represent the largest demographic group in poverty.

Correct AnswerverifiedShow Answer

Refer to Scenario 20-1.Which group would be most opposed to the switch from the current tax policy to the new progressive policy?

Correct AnswerverifiedShow Answer

Table 20-9 Poverty Thresholds in 2002,by Size of Family and Number of Related Children Under 18 Years [Dollars] Source: U.S.Bureau of the Census,Current Population Survey. -Refer to Table 20-9.What is the poverty line for a family of six with three children?

Correct AnswerverifiedShow Answer

In a typical 10-year period,about one in four families falls below the poverty line in at least one year.What percentage of families are poor for eight or more years?

Correct AnswerverifiedShow Answer

Critics argue that a disadvantage of minimum-wage laws is that they do not effectively target the working poor because many minimum-wage workers are the teenage children of middle-income families.

Correct AnswerverifiedShow Answer

Table 20-9 Poverty Thresholds in 2002,by Size of Family and Number of Related Children Under 18 Years [Dollars] Source: U.S.Bureau of the Census,Current Population Survey. -Refer to Table 20-9.What is the poverty line for a family with one 68-year-old adult and one child?

Correct AnswerverifiedShow Answer

Since the early 1970s,average incomes have

Correct AnswerverifiedShow Answer

In comparison to the average poverty rate,

Correct AnswerverifiedShow Answer

Libertarians believe that the government should enforce individual rights to ensure that all people have the same opportunities to use their talents to achieve success.

Correct AnswerverifiedShow Answer

According to the doctrine of liberalism,principles of justice are the result of

Correct AnswerverifiedShow Answer

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A person's earnings depend on the supply...
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Making mon...
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