Question 1

A commonly-used gauge of poverty is the

Accepted Answer

A)   income inequality rate.
B)   average income rate.
C)   poverty rate.
D)   social inequality rate.E) A) and C)
F) B) and C)

Question 2

A common criticism of welfare programs is that they

Accepted Answer

A)   create self-reliant individuals.
B)   encourage strong family values.
C)   encourage illegitimate births.
D)   have increasing benefits over time,in real terms.E) A) and D)
F) B) and C)

Question 3

The concept of diminishing marginal utility is embedded in the utilitarian rationale for

Accepted Answer

A)   trickle-down effects.
B)   enhancing market efficiency.
C)   redistributing income.
D)   maintaining the status quo income distribution.E) A) and C)
F) B) and D)

Question 4

Income mobility studies suggest that poverty

Accepted Answer

A)   cannot be alleviated by privately sponsored anti-poverty programs.
B)   cannot be alleviated by government sponsored anti-poverty programs.
C)   is a long-term problem for a relatively large number of families.
D)   is not a long-term problem for most families.E) A) and C)
F) A) and B)

Question 5

Based on U.S.income data from 2005,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) C) and D)

Question 6

Figure 20-2
Poverty Rates by Age 
-Refer to Figure 20-2.In 1968,the percent of children under age 18 in poverty is

Accepted Answer

A)   higher than both the percentage of adults aged 18 to 64 and the percentage of elderly aged 65 and over in poverty.
B)   higher than the percentage of adults aged 18 to 64 but is lower than the percentage of elderly aged 65 and over in poverty.
C)   lower than both the percentage of adults aged 18 to 64 and the percentage of elderly aged 65 and over in poverty.
D)   lower than the percentage of adults aged 18 to 64 but is higher than the percentage of elderly aged 65 and over in poverty.E) None of the above
F) C) and D)

Question 7

The study by economists Cox and Alm found that the 2006 after-tax income of the richest fifth of U.S.households is

Accepted Answer

A)   equal to the after-tax income of the poorest fifth.
B)   7 times the after-tax income of the poorest fifth.
C)   14 times the after-tax income of the poorest fifth.
D)   21 times the after-tax income of the poorest fifth.E) All of the above
F) None of the above

Question 8

Figure 20-3 o,and employment would rise above Qo. B)  above Wo,and employment would fall below Qo. C)  below Wo,and employment would rise above Qo. D)  below Wo,and employment would fall below Qo." class="answers-bank-image d-inline" rel="preload" >
-Refer to Figure 20-3.An effective minimum wage would be set at a level

Accepted Answer

A)   above Wo,and employment would rise above Qo.
B)   above Wo,and employment would fall below Qo.
C)   below Wo,and employment would rise above Qo.
D)   below Wo,and employment would fall below Qo.E) B) and D)
F) B) and C)

Question 9

A negative income tax system would

Accepted Answer

A)   make taxes more regressive.
B)   sever the link between tax policy and income distribution.
C)   collect from high-income households and give transfers to low-income households.
D)   eliminate progressive tax rates.E) B) and D)
F) B) and C)

Question 10

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 remain constant.
D)   The allocation of resources will be less efficient .E) All of the above
F) B) and C)

Question 11

"Equality of opportunities is more important than equality of incomes." This statement would be most likely attributed to which political philosophy?

Accepted Answer

A)   Utilitarianism.
B)   Liberalism.
C)   Libertarianism.
D)   Welfarism.E) None of the above
F) A) and B)

Question 12

Figure 20-2
Poverty Rates by Age 
-Refer to Figure 20-2.In 1968,the percent of elderly aged 65 and over in poverty is

Accepted Answer

A)   higher than both the percentage of adults aged 18 to 64 and the percentage of children under age 18 in poverty.
B)   higher than the percentage of adults aged 18 to 64 but is lower than the percentage of children under age 18 in poverty.
C)   lower than both the percentage of adults aged 18 to 64 and the percentage of children under age 18 in poverty.
D)   is lower than the percentage of adults aged 18 to 64 but is higher than the percentage of children under age 18 in poverty.E) A) and D)
F) A) and C)

Question 13

The marketplace allocates resources

Accepted Answer

A)   fairly.
B)   efficiently.
C)   to those desiring them least.
D)   both efficiently and equitably.E) All of the above
F) A) and B)

Question 14

In 2005,the poverty rate in the United States was

Accepted Answer

A)   2.5 percent.
B)   12.6 percent.
C)   11.1 percent.
D)   22.4 percent.E) A) and C)
F) None of the above

Question 15

Scenario 20-1
Suppose that a society is made up of five families whose incomes are as follows:
$120,000;$90,000;$30,000;$30,000;and $18,000.
The federal government is considering two potential income tax plans:
Plan A is a negative income tax plan where the taxes owed equal 1/3 of income minus $20,000.
Plan B is a two-tiered plan where the poverty line is $35,000;families earning over $35,000 pay 10% of their income in taxes,and families earning less than $35,000 pay no income tax.
-Raising total utility is the prime objective of which political philosophy?

Accepted Answer

A)   Utilitarianism.
B)   Liberalism.
C)   Libertarianism.
D)   None of the above is correct.E) None of the above
F) A) and B)

Question 16

In the Temporary Assistance for Needy Families program,most families

Accepted Answer

A)   must have both parents in the home to qualify.
B)   are female head-of-household families in which the father is absent.
C)   have adult children with disabilities living at home.
D)   are ineligible to receive assistance from other support programs.E) A) and C)
F) C) and D)

Question 17

Explain the concept of diminishing marginal utility,and describe the role that it plays in the utilitarian argument for the redistribution of income.

Accepted Answer

Diminishing marginal utility refers to t...

Question 18

Which of the following statements is characteristic of utilitarianism?

Accepted Answer

A)   An extra dollar of income provides higher marginal utility to a poor person than to a rich person.
B)   Social policies should be created behind a "veil of ignorance."
C)   Society should strive to maximize the utility of its wealthiest member.
D)   Equality of opportunity is more important than equality of incomes.E) A) and D)
F) A) and C)

Question 19

The maximin criterion suggests that social policy should

Accepted Answer

A)   expropriate the factors of production from the capitalist class.
B)   ensure an equal distribution of income.
C)   elevate the well-being of those at the bottom of the income distribution.
D)   elevate the well-being of all workers.E) A) and B)
F) A) and C)

Question 20

According to the maximin criterion,income should be transferred from the rich to the poor as long as it

Accepted Answer

A)   raises the well-being of the least fortunate.
B)   does not alter incentives to work and save.
C)   promotes an equal distribution of income.
D)   does not lower the welfare of the elderly.E) C) and D)
F) None of the above

Exam 20: Income Inequality and Poverty

A negative income tax system would

Correct Answer
verified

A commonly-used gauge of poverty is the

Correct Answer
verified

Based on U.S.income data from 2005,the top fifth of all families received

Correct Answer
verified

"Equality of opportunities is more important than equality of incomes." This statement would be most likely attributed to which political philosophy?

Correct Answer
verified

Figure 20-3 -Refer to Figure 20-3.An effective minimum wage would be set at a level

Correct Answer
verified

Figure 20-2 Poverty Rates by Age -Refer to Figure 20-2.In 1968,the percent of children under age 18 in poverty is

Correct Answer
verified

According to the maximin criterion,income should be transferred from the rich to the poor as long as it

Correct Answer
verified

Correct Answer
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Figure 20-2 Poverty Rates by Age -Refer to Figure 20-2.In 1968,the percent of elderly aged 65 and over in poverty is

Correct Answer
verified

Explain the concept of diminishing marginal utility,and describe the role that it plays in the utilitarian argument for the redistribution of income.

Correct Answer
verified
Diminishing marginal utility refers to t...
View Answer

In 2005,the poverty rate in the United States was

Correct Answer
verified

The study by economists Cox and Alm found that the 2006 after-tax income of the richest fifth of U.S.households is

Correct Answer
verified

The marketplace allocates resources

Correct Answer
verified

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

Correct Answer
verified

Income mobility studies suggest that poverty

Correct Answer
verified

In the Temporary Assistance for Needy Families program,most families

Correct Answer
verified

A common criticism of welfare programs is that they

Correct Answer
verified

Which of the following statements is characteristic of utilitarianism?

Correct Answer
verified

The concept of diminishing marginal utility is embedded in the utilitarian rationale for

Correct Answer
verified

The maximin criterion suggests that social policy should

Correct Answer
verified

Exam 20: Income Inequality and Poverty

A negative income tax system would

Correct AnswerverifiedShow Answer

A commonly-used gauge of poverty is the

Correct AnswerverifiedShow Answer

Based on U.S.income data from 2005,the top fifth of all families received

Correct AnswerverifiedShow Answer

"Equality of opportunities is more important than equality of incomes." This statement would be most likely attributed to which political philosophy?

Correct AnswerverifiedShow Answer

Figure 20-3 -Refer to Figure 20-3.An effective minimum wage would be set at a level

Correct AnswerverifiedShow Answer

Figure 20-2 Poverty Rates by Age -Refer to Figure 20-2.In 1968,the percent of children under age 18 in poverty is

Correct AnswerverifiedShow Answer

According to the maximin criterion,income should be transferred from the rich to the poor as long as it

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Figure 20-2 Poverty Rates by Age -Refer to Figure 20-2.In 1968,the percent of elderly aged 65 and over in poverty is

Correct AnswerverifiedShow Answer

Explain the concept of diminishing marginal utility,and describe the role that it plays in the utilitarian argument for the redistribution of income.

Correct AnswerverifiedDiminishing marginal utility refers to t...View AnswerShow Answer

In 2005,the poverty rate in the United States was

Correct AnswerverifiedShow Answer

The study by economists Cox and Alm found that the 2006 after-tax income of the richest fifth of U.S.households is

Correct AnswerverifiedShow Answer

The marketplace allocates resources

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Income mobility studies suggest that poverty

Correct AnswerverifiedShow Answer

In the Temporary Assistance for Needy Families program,most families

Correct AnswerverifiedShow Answer

A common criticism of welfare programs is that they

Correct AnswerverifiedShow Answer

Which of the following statements is characteristic of utilitarianism?

Correct AnswerverifiedShow Answer

The concept of diminishing marginal utility is embedded in the utilitarian rationale for

Correct AnswerverifiedShow Answer

The maximin criterion suggests that social policy should

Correct AnswerverifiedShow Answer

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Diminishing marginal utility refers to t...
View Answer

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