Question 1

In 2011, the poverty line for a family of four in the U.S. was

Accepted Answer

A)  $60,974.
B)  $23,021.
C)  $20,988.
D)  $17,642.E) A) and D)
F) B) and C)

Question 2

Which of the three political philosophies discussed in the textbook, if any, think the government should not take from some individuals and give to others to achieve any particular distribution of income?

Accepted Answer

The answer of Which of the three political philosophies discussed...

Question 3

Based on U.S. data for 2011, the poverty rate is the highest for which group of people?

Accepted Answer

A)  children
B)  married couples
C)  female-headed households, no spouse present
D)  the elderlyE) A) and B)
F) All of the above

Question 4

Assume that the government proposes a negative income tax that calculates the taxes owed as follows: Taxes Owed = (1/3  Income)  - 10,000. If a family doesn't earn any income, how does the negative income tax affect it?

Accepted Answer

A)  It will receive an income subsidy of $1,000.
B)  It will receive an income subsidy of $3,000.
C)  It will receive an income subsidy of $10,000.
D)  It will not be affected at all, since the negative income tax requires a family to earn income.E) A) and C)
F) B) and C)

Question 5

Which political philosophy argues that the government should choose policies deemed just, as evaluated by an impartial observer?

Accepted Answer

The answer of Which political philosophy argues that the government...

Question 6

If the government decided that each family needs a minimum income of $25,000 and promised to make up the difference between whatever a family earned and $25,000, which of the following is correct?

Accepted Answer

A)  The government is effectively taxing every dollar earned up to $25,000 at a rate of 100%.
B)  This program would reduce the incentive to work to earn any wage up to $25,000.
C)  If workers are discouraged from working due to this program, they will miss any on-the-job training that would have otherwise occurred, limiting their ability to improve their skills.
D)  All of the above are correct.E) B) and C)
F) None of the above

Question 7

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...

Question 8

Goods and services given to the poor such as food stamps, housing vouchers, and medical services are called

Accepted Answer

The answer of Goods and services given to the poor...

Question 9

Diminishing marginal utility suggests that

Accepted Answer

A)  more is always preferred to less.
B)  the well-being of society is maximized when the distribution of income is equal.
C)  the poor are less efficient at spending money than the rich.
D)  the poor receive more satisfaction from the last dollar spent than the rich.E) None of the above
F) A) and B)

Question 10

Scenario 20-1
The government is proposing switching from a progressive tax system in which families pay 15% of the first $50,000 earned, 25% of the next $50,000 earned, and 35% of any income over $100,000 to a tax system in which every family pays 20% of their income less $20,000.
-Refer to Scenario 20-1. What would the libertarians think of the proposed policy change?

Accepted Answer

A)  They would favor the current progressive policy over the proposed policy because it accounts for diminishing marginal utility.
B)  They would favor the proposed tax policy over the current progressive policy because it would result in a negative tax for the poorest families.
C)  They would favor the current progressive tax policy over the proposed policy because it rewards those who work the hardest.
D)  They would oppose both tax policies because both redistribute income.E) B) and D)
F) All of the above

Question 11

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) A) and B)

Question 12

What is the term for a measure of happiness or satisfaction a person receives from his or her circumstances?

Accepted Answer

The answer of What is the term for a measure...

Question 13

Among all countries in the world, the United States has the most income inequality.

Accepted Answer

A) True 
 B)False

Question 14

Liberalism aims to raise the welfare of the worst-off person in society. This rule is called the

Accepted Answer

A)  minimax regret criterion.
B)  conservative approach.
C)  Nozick criterion.
D)  maximin criterion.E) B) and D)
F) B) and C)

Question 15

Over the past 50 years, the U.S. poverty rate was at its lowest level in

Accepted Answer

A)  1973.
B)  1980.
C)  1990.
D)  2008.E) B) and D)
F) A) and B)

Question 16

The table below reflects the levels of total utility received from income for each of four members of a society.  
a.Assume that the society has the following income distribution:
Peter $3
Paul $7
Mary $5
Jane $3
Is it possible for the government to increase total aggregate utility by redistributing income among members of society? Explain your answer.
b.Assume that the government has $19 to allocate among the four members of society. (Assume that no one has any income to start with.) If the government is interested in distributing income in a way that maximizes aggregate total utility, how should it distribute the $19 of income?
c.Does the table above describe a situation characterized by diminishing marginal utility? Explain your answer.

Accepted Answer

a.No. If a dollar is taken from anyone, ...

Question 17

What is meant by a perfectly equal distribution of income? Use a graph to depict such a situation.

Accepted Answer

<img  loading="lazy" src="/assets/images/blured-textbook.svg" class="d-inline m-1" alt="blured image" width="139" height="30"> If income were equally distributed acro...

Question 18

In 2011, the poverty rate in the United States was

Accepted Answer

A)  5.9 percent.
B)  11.1 percent.
C)  15.0 percent.
D)  22.4 percent.E) B) and D)
F) All of the above

Question 19

The poverty rate is an absolute level of income set by the federal government for each family size. A family with income below this rate is deemed to be in poverty.

Accepted Answer

A) True 
 B)False

Question 20

When we examine historical data on income inequality in the U.S., we see that the distribution of income gradually became

Accepted Answer

A)  more equal between 1935 and 2011.
B)  more equal between 1935 and 1973, but that trend reversed itself between 1973 and 2011.
C)  more unequal between 1935 and 1973, but that trend reversed itself between 1973 and 2011.
D)  more unequal between 1935 and 2011.E) A) and C)
F) All of the above

Exam 20: Income Inequality and Poverty

What is the term for a measure of happiness or satisfaction a person receives from his or her circumstances?

Correct Answer
verified

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 Answer
verified

Diminishing marginal utility suggests that

Correct Answer
verified

When we examine historical data on income inequality in the U.S., we see that the distribution of income gradually became

Correct Answer
verified

Among all countries in the world, the United States has the most income inequality.

Correct Answer
verified

The poverty rate is an absolute level of income set by the federal government for each family size. A family with income below this rate is deemed to be in poverty.

Correct Answer
verified

If the government decided that each family needs a minimum income of $25,000 and promised to make up the difference between whatever a family earned and $25,000, which of the following is correct?

Correct Answer
verified

Which of the three political philosophies discussed in the textbook, if any, think the government should not take from some individuals and give to others to achieve any particular distribution of income?

Correct Answer
verified

In 2011, the poverty line for a family of four in the U.S. was

Correct Answer
verified

Over the past 50 years, the U.S. poverty rate was at its lowest level in

Correct Answer
verified

Based on U.S. data for 2011, the poverty rate is the highest for which group of people?

Correct Answer
verified

Correct Answer
verified

Goods and services given to the poor such as food stamps, housing vouchers, and medical services are called

Correct Answer
verified

What is meant by a perfectly equal distribution of income? Use a graph to depict such a situation.

Correct Answer
verified
If income were equally distributed acro...
View Answer

Which political philosophy argues that the government should choose policies deemed just, as evaluated by an impartial observer?

Correct Answer
verified

Assume that the government proposes a negative income tax that calculates the taxes owed as follows: Taxes Owed = (1/3 Income) - 10,000. If a family doesn't earn any income, how does the negative income tax affect it?

Correct Answer
verified

In 2011, the poverty rate in the United States was

Correct Answer
verified

Correct Answer
verified
a.No. If a dollar is taken from anyone, ...
View Answer

In comparison to the average poverty rate,

Correct Answer
verified

Liberalism aims to raise the welfare of the worst-off person in society. This rule is called the

Correct Answer
verified

Exam 20: Income Inequality and Poverty

What is the term for a measure of happiness or satisfaction a person receives from his or her circumstances?

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

Diminishing marginal utility suggests that

Correct AnswerverifiedShow Answer

When we examine historical data on income inequality in the U.S., we see that the distribution of income gradually became

Correct AnswerverifiedShow Answer

Among all countries in the world, the United States has the most income inequality.

Correct AnswerverifiedShow Answer

The poverty rate is an absolute level of income set by the federal government for each family size. A family with income below this rate is deemed to be in poverty.

Correct AnswerverifiedShow Answer

If the government decided that each family needs a minimum income of $25,000 and promised to make up the difference between whatever a family earned and $25,000, which of the following is correct?

Correct AnswerverifiedShow Answer

Which of the three political philosophies discussed in the textbook, if any, think the government should not take from some individuals and give to others to achieve any particular distribution of income?

Correct AnswerverifiedShow Answer

In 2011, the poverty line for a family of four in the U.S. was

Correct AnswerverifiedShow Answer

Over the past 50 years, the U.S. poverty rate was at its lowest level in

Correct AnswerverifiedShow Answer

Based on U.S. data for 2011, the poverty rate is the highest for which group of people?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Goods and services given to the poor such as food stamps, housing vouchers, and medical services are called

Correct AnswerverifiedShow Answer

What is meant by a perfectly equal distribution of income? Use a graph to depict such a situation.

Correct Answerverified If income were equally distributed acro...View AnswerShow Answer

Which political philosophy argues that the government should choose policies deemed just, as evaluated by an impartial observer?

Correct AnswerverifiedShow Answer

Assume that the government proposes a negative income tax that calculates the taxes owed as follows: Taxes Owed = (1/3 Income) - 10,000. If a family doesn't earn any income, how does the negative income tax affect it?

Correct AnswerverifiedShow Answer

In 2011, the poverty rate in the United States was

Correct AnswerverifiedShow Answer

Correct Answerverifieda.No. If a dollar is taken from anyone, ...View AnswerShow Answer

In comparison to the average poverty rate,

Correct AnswerverifiedShow Answer

Liberalism aims to raise the welfare of the worst-off person in society. This rule is called the

Correct AnswerverifiedShow Answer

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Correct Answer
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If income were equally distributed acro...
View Answer

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Correct Answer
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Correct Answer
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Correct Answer
verified
a.No. If a dollar is taken from anyone, ...
View Answer

Correct Answer
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Correct Answer
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