Question 1

Temporary Assistance for Needy Families (TANF)and Supplemental Security Income (SSI)are examples of

Accepted Answer

The answer of Temporary Assistance for Needy Families (TANF)and Supplemental...

Question 2

The distribution of income for Grim is as follows:  If the poverty rate in Grim is 50 percent,what is the poverty line in Grim?

Accepted Answer

A)   $5,000.
B)   $10,000.
C)   $15,000.
D)   $20,000.E) B) and C)
F) A) and C)

Question 3

Poor families are eligible for financial assistance,without having to demonstrate any additional "need,"

Accepted Answer

A)   under the current welfare system and under a negative income tax.
B)   under the current welfare system but not under a negative income tax.
C)   under a negative income tax but not under the current welfare system.
D)   under neither the current welfare system nor under a negative income tax.E) B) and C)
F) All of the above

Question 4

Table 20-1
The following table shows the distribution of income in Thomasville.
 
-Refer to Table 20-1.If the poverty line was $29,075,what would be the poverty rate?

Accepted Answer

A)   less than 25%
B)   between 25% and 50%
C)   between 50% and 75%
D)   There is insufficient information to answer this question.E) All of the above
F) A) and B)

Question 5

Which of the following statements is not correct?

Accepted Answer

A)   An advantage of an in-kind transfer is that it prevents an alcoholic from spending a cash benefit on alcohol.
B)   An advantage of the Supplemental Security Income (SSI) program is that it benefits the sick and disabled.
C)   An advantage of a negative income tax program is that the poor must work in order to be eligible.
D)   Minimum wage laws result in higher unemployment among those groups of workers affected by the minimum wage.E) None of the above
F) A) and D)

Question 6

The poverty rate is based on a family's

Accepted Answer

A)   income,in-kind transfers,and other government aid.
B)   income and in-kind transfers.
C)   in-kind transfers only.
D)   income only.E) B) and D)
F) A) and B)

Question 7

Since about 1970 in the U.S. ,

Accepted Answer

A)   decreases in the wages of unskilled workers,relative to skilled workers,have led to increased inequality in family incomes.
B)   increases in the wages of unskilled workers,relative to skilled workers,have led to increased equality in family incomes.
C)   inequality in family incomes has increased,despite increases in the wages of unskilled workers relative to skilled workers.
D)   inequality in family incomes has decreased,despite increases in the wages of skilled workers relative to unskilled workers.E) B) and C)
F) A) and D)

Question 8

Table 20-6
 
-Refer to Table 20-6.A person who is concerned that income inequality has worsened between 2007 and 2008 would cite which of the following statistics to support her position?

Accepted Answer

A)   The percentage of people earning less than $25,000 decreased from 2007 to 2008.
B)   The percentage of people earning more than $100,000 increased from 2007 to 2008.
C)   The percentage of people earning between $50,000 and $100,000 stayed virtually constant from 2007 to 2008.
D)   Both a and b are correct.E) B) and D)
F) B) and C)

Question 9

Most economists believe that a family bases its spending decisions on its transitory income.

Accepted Answer

A) True 
 B)False

Question 10

When the government taxes income as part of a redistribution program,

Accepted Answer

A)   the poor pay higher taxes.
B)   the rich always benefit more than the poor.
C)   the poor are encouraged to work.
D)   incentives to earn income are diminished.E) A) and B)
F) B) and C)

Question 11

The US government sets the poverty line equal to approximately

Accepted Answer

A)   three times the cost of providing subsidized housing.
B)   three times the cost of providing an adequate diet.
C)   the minimum wage for a single person working 40 hours per week and 50 weeks per year.
D)   the cost of providing food,shelter,and health care expenses for a family of four.E) C) and D)
F) A) and B)

Question 12

Based on U.S.income data from 2008,the bottom fifth of all families received approximately what percent of all income?

Accepted Answer

A)   48 percent
B)   21 percent
C)   10 percent
D)   4 percentE) A) and B)
F) A) and C)

Question 13

Table 20-4
  Source: U.S.Bureau of Census
-Refer to Table 20-4.In 2007,the bottom 60% of families have

Accepted Answer

A)   only 12% of total income in the U.S.
B)   only 27% of total income in the U.S.
C)   50% of total income in the U.S.
D)   73% of total income in the U.S.E) A) and B)
F) A) and D)

Question 14

One existing government program that works much like a negative income tax is the Earned Income Tax Credit.

Accepted Answer

A) True 
 B)False

Question 15

A goal of libertarians is to provide citizens with equal opportunities rather than to ensure equal outcomes.

Accepted Answer

A) True 
 B)False

Question 16

A utilitarian government will pursue policies that redistribute income from the rich to the poor.One problem with these policies is that

Accepted Answer

A)   everyone has less incentive to work hard.
B)   the rich will work harder while the poor will not.
C)   the poor will work harder while the rich will not.
D)   everyone in the middle class ends up worse off.E) A) and B)
F) None of the above

Question 17

Which of the following will not occur when government policies are enacted to make the distribution of income more equitable?

Accepted Answer

A)   People will alter their behaviors.
B)   Incentives will be distorted.
C)   Total utility will likely remain constant.
D)   The allocation of resources will be less efficient .E) A) and C)
F) All of the above

Question 18

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 75-year-old individual?

Accepted Answer

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

Question 19

The study by economists Cox and Alm found

Accepted Answer

A)   the gap between rich and poor shrinks greatly if using after-tax income compared with pre-tax income.
B)   the gap between rich and poor shrinks slightly if using after-tax income compared with pre-tax income.
C)   the gap between rich and poor widens slightly if using after-tax income compared with pre-tax income.
D)   the gap between rich and poor widens greatly if using after-tax income compared with pre-tax income.E) B) and C)
F) A) and B)

Question 20

Assume you are a critic of welfare reforms that impose a time limit on the number of years a person is eligible for welfare benefits.What is the foundation of your critique?

Accepted Answer

The critique is based on the premise tha...

Exam 20: Income Inequality and Poverty

Table 20-4 Source: U.S.Bureau of Census -Refer to Table 20-4.In 2007,the bottom 60% of families have

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Temporary Assistance for Needy Families (TANF)and Supplemental Security Income (SSI)are examples of

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The US government sets the poverty line equal to approximately

Correct AnswerverifiedShow Answer

Which of the following will not occur when government policies are enacted to make the distribution of income more equitable?

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The distribution of income for Grim is as follows: If the poverty rate in Grim is 50 percent,what is the poverty line in Grim?

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Which of the following statements is not correct?

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Table 20-6 -Refer to Table 20-6.A person who is concerned that income inequality has worsened between 2007 and 2008 would cite which of the following statistics to support her position?

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Most economists believe that a family bases its spending decisions on its transitory income.

Correct AnswerverifiedShow Answer

The poverty rate is based on a family's

Correct AnswerverifiedShow Answer

A goal of libertarians is to provide citizens with equal opportunities rather than to ensure equal outcomes.

Correct AnswerverifiedShow Answer

Assume you are a critic of welfare reforms that impose a time limit on the number of years a person is eligible for welfare benefits.What is the foundation of your critique?

Correct AnswerverifiedThe critique is based on the premise tha...View AnswerShow Answer

The study by economists Cox and Alm found

Correct AnswerverifiedShow Answer

When the government taxes income as part of a redistribution program,

Correct AnswerverifiedShow Answer

Since about 1970 in the U.S. ,

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 75-year-old individual?

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Table 20-1 The following table shows the distribution of income in Thomasville. -Refer to Table 20-1.If the poverty line was $29,075,what would be the poverty rate?

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Based on U.S.income data from 2008,the bottom fifth of all families received approximately what percent of all income?

Correct AnswerverifiedShow Answer

A utilitarian government will pursue policies that redistribute income from the rich to the poor.One problem with these policies is that

Correct AnswerverifiedShow Answer

Poor families are eligible for financial assistance,without having to demonstrate any additional "need,"

Correct AnswerverifiedShow Answer

One existing government program that works much like a negative income tax is the Earned Income Tax Credit.

Correct AnswerverifiedShow Answer

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The critique is based on the premise tha...
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