Question 1

Table 20-14
Income Inequality in the United States
The values in the table reflect the percentages of pre-tax-and transfer income.  Source: US Census Bureau
-Refer to Table 20-14. In 2010, what percentage of total income in the US did the bottom 20% of families have?

Accepted Answer

The answer of Table 20-14
Income Inequality in the United States
The...

Question 2

Libertarianism identifies a redistribution of income role for government when

Accepted Answer

A)   the utility of the worst-off could be improved.
B)   the income distribution is altered by illegal means (e.g. theft) .
C)   the total utility for society can be improved through redistribution of income.
D)   a "veil of ignorance" would result in a recommendation of redistribution of income.E) A) and C)
F) A) and D)

Question 3

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 4

In 2011, the top 20% of US families had more than times as much income as the bottom 20%.

Accepted Answer

The answer of In 2011, the top 20% of US...

Question 5

Table 20-4  Source: U.S. Bureau of Census
-Refer to Table 20-4. Comparing data from 2000 and 2011, which of the following statements is correct?

Accepted Answer

A)   There has been no change in overall income inequality because the share of income held by the fourth fifth is nearly identical.
B)   Overall income inequality has worsened slightly, as shown by the simultaneous increase in the share of income held by the top fifth and the decrease in the share of income held by the bottom fifth.
C)   Overall income inequality has improved because the share held by the second fifth has declined by 0.5%.
D)   None of the above is correct.E) All of the above
F) C) and D)

Question 6

Table 20-3
The Distribution of Income in Edgerton 
-Refer to Table 20-3. According to the table, what percent of families in Edgerton have income levels below $76,000?

Accepted Answer

A)   20 percent.
B)   40 percent.
C)   60 percent.
D)   80 percent.E) None of the above
F) A) and B)

Question 7

One way of expressing the tradeoff between income equality and efficiency is to say the more equally the pie is divided, the .

Accepted Answer

smaller th...

Question 8

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) A) and D)
F) All of the above

Question 9

Scenario 20-7
Zooey is a single mother of two young children whose husband died in a tragic car accident. She earns $20,000 per year working as a cashier at a grocery store. The government uses a negative income tax system in which Taxes owed = (1/4 of income) - $15,000.
-Refer to Scenario 20-7. Does Zooey owe or receive money from the government? How much?

Accepted Answer

She receiv...

Question 10

In the United States, long-term poverty, defined as a family having an income below the poverty line for eight or more years, is

Accepted Answer

A)   common, affecting approximately 25 percent of all American families.
B)   common, affecting approximately 15 percent of all American families.
C)   uncommon, affecting approximately 8 percent of all American families.
D)   rare, affecting approximately 3 percent of all American families.E) A) and B)
F) C) and D)

Question 11

Table 20-13
Distribution of Income in Imagination 
-Refer to Table 20-13. The Human Development Report computes a measure of inequality by dividing the income of the richest 10% of the population by the income of the poorest 10%. What is the value for this measure of inequality in Imagination?

Accepted Answer

The answer of Table 20-13
Distribution of Income in Imagination 
-Refer...

Question 12

A binding minimum wage

Accepted Answer

A)   affects employees but not employers.
B)   lowers the productivity of workers.
C)   raises the cost of labor to firms.
D)   All of the above are correct.E) All of the above
F) A) and B)

Question 13

Standard measurements of the degree of income inequality take both money income and in-kind transfers into account.

Accepted Answer

A) True 
 B)False

Question 14

Liberalism suggests that public policies should aim to

Accepted Answer

A)   maximize the sum of utility of everyone in society.
B)   maximize the well-being of the average person in society.
C)   maximize the well-being of the worst-off person in society.
D)   minimize the difference between the utility of the best-off person in the society and the utility of the worst-off person in society.E) A) and D)
F) A) and C)

Question 15

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 16

A disadvantage associated with a minimum wage law to reduce poverty is that it

Accepted Answer

A)   encourages illegitimate births because single women with children receive higher payments.
B)   rewards laziness because it provides payments to those with low incomes regardless of their work effort.
C)   focuses on children and the disabled while neglecting the working poor.
D)   may benefit the teenage children of families who are not poor.E) A) and C)
F) All of the above

Question 17

Economic mobility in the United States is

Accepted Answer

A)   uncommon. Over 50 percent of poor families remain poor for 8 or more years.
B)   uncommon. Over 75 percent of poor families remain poor for 8 or more years.
C)   common. Fewer than 3 percent of poor families remain poor for 8 or more years.
D)   common. Fewer than 1 percent of poor families remain poor for 8 or more years.E) A) and B)
F) None of the above

Question 18

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 D)
F) None of the above

Question 19

Since 1970, has the distribution of income in the US become more equal, less equal, or remained unchanged?

Accepted Answer

The answer of Since 1970, has the distribution of income...

Question 20

The English philosophers Jeremy Bentham and John Stuart Mill founded the school of thought called

Accepted Answer

A)   liberalism.
B)   libertarianism.
C)   mobilism.
D)   utilitarianism.E) A) and B)
F) A) and C)

Exam 20: Income Inequality and Poverty

A disadvantage associated with a minimum wage law to reduce poverty is that it

Correct Answer
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A binding minimum wage

Correct Answer
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Liberalism suggests that public policies should aim to

Correct Answer
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Table 20-3 The Distribution of Income in Edgerton -Refer to Table 20-3. According to the table, what percent of families in Edgerton have income levels below $76,000?

Correct Answer
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Table 20-4 Source: U.S. Bureau of Census -Refer to Table 20-4. Comparing data from 2000 and 2011, which of the following statements is correct?

Correct Answer
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Standard measurements of the degree of income inequality take both money income and in-kind transfers into account.

Correct Answer
verified

Libertarianism identifies a redistribution of income role for government when

Correct Answer
verified

The English philosophers Jeremy Bentham and John Stuart Mill founded the school of thought called

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

In 2011, the top 20% of US families had more than times as much income as the bottom 20%.

Correct Answer
verified

One way of expressing the tradeoff between income equality and efficiency is to say the more equally the pie is divided, the .

Correct Answer
verified
smaller th...
View Answer

Since 1970, has the distribution of income in the US become more equal, less equal, or remained unchanged?

Correct Answer
verified

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

Correct Answer
verified

Table 20-14 Income Inequality in the United States The values in the table reflect the percentages of pre-tax-and transfer income. Source: US Census Bureau -Refer to Table 20-14. In 2010, what percentage of total income in the US did the bottom 20% of families have?

Correct Answer
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She receiv...
View Answer

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

Correct Answer
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A negative income tax system would

Correct Answer
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Table 20-13 Distribution of Income in Imagination -Refer to Table 20-13. The Human Development Report computes a measure of inequality by dividing the income of the richest 10% of the population by the income of the poorest 10%. What is the value for this measure of inequality in Imagination?

Correct Answer
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In the United States, long-term poverty, defined as a family having an income below the poverty line for eight or more years, is

Correct Answer
verified

Economic mobility in the United States is

Correct Answer
verified

Exam 20: Income Inequality and Poverty

A disadvantage associated with a minimum wage law to reduce poverty is that it

Correct AnswerverifiedShow Answer

A binding minimum wage

Correct AnswerverifiedShow Answer

Liberalism suggests that public policies should aim to

Correct AnswerverifiedShow Answer

Table 20-3 The Distribution of Income in Edgerton -Refer to Table 20-3. According to the table, what percent of families in Edgerton have income levels below $76,000?

Correct AnswerverifiedShow Answer

Table 20-4 Source: U.S. Bureau of Census -Refer to Table 20-4. Comparing data from 2000 and 2011, which of the following statements is correct?

Correct AnswerverifiedShow Answer

Standard measurements of the degree of income inequality take both money income and in-kind transfers into account.

Correct AnswerverifiedShow Answer

Libertarianism identifies a redistribution of income role for government when

Correct AnswerverifiedShow Answer

The English philosophers Jeremy Bentham and John Stuart Mill founded the school of thought called

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

In 2011, the top 20% of US families had more than times as much income as the bottom 20%.

Correct AnswerverifiedShow Answer

One way of expressing the tradeoff between income equality and efficiency is to say the more equally the pie is divided, the .

Correct Answerverifiedsmaller th...View AnswerShow Answer

Since 1970, has the distribution of income in the US become more equal, less equal, or remained unchanged?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Table 20-14 Income Inequality in the United States The values in the table reflect the percentages of pre-tax-and transfer income. Source: US Census Bureau -Refer to Table 20-14. In 2010, what percentage of total income in the US did the bottom 20% of families have?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShe receiv...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

A negative income tax system would

Correct AnswerverifiedShow Answer

Table 20-13 Distribution of Income in Imagination -Refer to Table 20-13. The Human Development Report computes a measure of inequality by dividing the income of the richest 10% of the population by the income of the poorest 10%. What is the value for this measure of inequality in Imagination?

Correct AnswerverifiedShow Answer

In the United States, long-term poverty, defined as a family having an income below the poverty line for eight or more years, is

Correct AnswerverifiedShow Answer

Economic mobility in the United States is

Correct AnswerverifiedShow Answer

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smaller th...
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She receiv...
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