Question 1

Which of the following is not an example of in-kind transfers?

Accepted Answer

A)   food stamps
B)   Medicaid
C)   the Earned Income Tax Credit
D)   housing vouchersE) None of the above
F) B) and C)

Question 2

Table 20-15
Income Inequality in 2010 in the United States by Race
The values in the table reflect the percentages of pre-tax-and-transfer income.  Source: US Census Bureau
-Refer to Table 20-15. Which race shows the least equal distribution of income?

Accepted Answer

The answer of Table 20-15
Income Inequality in 2010 in the...

Question 3

When designing public policies, which income group would philosopher John Rawls argue needs the most attention?

Accepted Answer

A)   Individuals located in the bottom fifth of the income distribution.
B)   Individuals located at the average income level.
C)   Individuals located in the top fifth of the income distribution.
D)   Individuals located in the top five percent of the income distribution.E) A) and B)
F) B) and C)

Question 4

Miguel is a 20 year old college student who works part-time and earns an annual income of $12,000. To smooth out his life cycle changes in income, Miguel can

Accepted Answer

A)   save his earnings to use when he is middle-aged.
B)   lend money to a friend to purchase a new car.
C)   borrow money to pay for college, which he will later repay when his income rises.
D)   attempt to pay for college from his current earnings.E) None of the above
F) All of the above

Question 5

Based on data from 2011, the top fifth of all families received approximately what percent of all income in the United States?

Accepted Answer

A)   83 percent
B)   49 percent
C)   41 percent
D)   21 percentE) None of the above
F) All of the above

Question 6

If the U.S. government determines that the cost of feeding an urban family of four is $5,200 per year, then the official poverty line for a family of that type is

Accepted Answer

A)   $10,400.
B)   $15,600.
C)   $20,800.
D)   $26,000.E) A) and B)
F) All of the above

Question 7

Table 20-7 
-Refer to Table 20-7. Which of the following is the best overall conclusion to draw from the data?

Accepted Answer

A)   The most alarming statistic is the lowering of the top income level that defines the bottom fifth of the income distribution because this indicates that the income distribution is becoming more unequal.
B)   The greatest cause for concern is the increase in the minimum income level that defines the top fifth of the income distribution because this indicates that the rich have become richer.
C)   The income distribution has been relatively unchanged from 2001 to 2011.
D)   Both a and b are correct.E) None of the above
F) A) and C)

Question 8

The income distribution in the United States shows that the income share of the top fifth of all families is

Accepted Answer

A)   over 60 percent.
B)   around 21 percent.
C)   more than 12 times the income of the bottom fifth.
D)   less than 10 times the income of the bottom fifth.E) B) and C)
F) All of the above

Question 9

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 10

Which of the following is not a question that economists try to answer when measuring the distribution of income?

Accepted Answer

A)   How many people live in poverty?
B)   How often do people receive a raise at work?
C)   How often do people move among income classes?
D)   What problems arise in measuring the amount of inequality?E) A) and B)
F) None of the above

Question 11

In 2011, what percentage of U.S. families had income levels above $115,866?

Accepted Answer

A)   10 percent
B)   20 percent
C)   60 percent
D)   80 percentE) A) and D)
F) B) and C)

Question 12

The poverty line is based on the percentage of people who cannot afford an adequate diet.

Accepted Answer

A) True 
 B)False

Question 13

The goal of liberalism is to

Accepted Answer

A)   redistribute income based on the assumption of diminishing marginal utility.
B)   redistribute income in order to improve the well-being of the worst-off person in society.
C)   punish crimes and enforce voluntary agreements but not to redistribute income.
D)   measure happiness and satisfaction.E) A) and B)
F) B) and D)

Question 14

The Supplemental Security Income (SSI) program focuses on the poor who are sick or disabled.

Accepted Answer

A) True 
 B)False

Question 15

A government's policy of redistributing income makes the income distribution

Accepted Answer

A)   more equal, distorts incentives, alters behavior, and makes the allocation of resources more efficient.
B)   more equal, distorts incentives, alters behavior, and makes the allocation of resources less efficient.
C)   less equal, distorts incentives, alters behavior, and makes the allocation of resources more efficient.
D)   less equal, distorts incentives, alters behavior, and makes the allocation of resources less efficient.E) A) and B)
F) A) and D)

Exam 20: Income Inequality and Poverty

Based on data from 2011, the top fifth of all families received approximately what percent of all income in the United States?

Correct Answer
verified

In 2011, what percentage of U.S. families had income levels above $115,866?

Correct Answer
verified

A government's policy of redistributing income makes the income distribution

Correct Answer
verified

Table 20-15 Income Inequality in 2010 in the United States by Race The values in the table reflect the percentages of pre-tax-and-transfer income. Source: US Census Bureau -Refer to Table 20-15. Which race shows the least equal distribution of income?

Correct Answer
verified

Which of the following is not an example of in-kind transfers?

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

When designing public policies, which income group would philosopher John Rawls argue needs the most attention?

Correct Answer
verified

The income distribution in the United States shows that the income share of the top fifth of all families is

Correct Answer
verified

The goal of liberalism is to

Correct Answer
verified

The Supplemental Security Income (SSI) program focuses on the poor who are sick or disabled.

Correct Answer
verified

The poverty line is based on the percentage of people who cannot afford an adequate diet.

Correct Answer
verified

Table 20-7 -Refer to Table 20-7. Which of the following is the best overall conclusion to draw from the data?

Correct Answer
verified

If the U.S. government determines that the cost of feeding an urban family of four is $5,200 per year, then the official poverty line for a family of that type is

Correct Answer
verified

Which of the following is not a question that economists try to answer when measuring the distribution of income?

Correct Answer
verified

Miguel is a 20 year old college student who works part-time and earns an annual income of $12,000. To smooth out his life cycle changes in income, Miguel can

Correct Answer
verified

Exam 20: Income Inequality and Poverty

Based on data from 2011, the top fifth of all families received approximately what percent of all income in the United States?

Correct AnswerverifiedShow Answer

In 2011, what percentage of U.S. families had income levels above $115,866?

Correct AnswerverifiedShow Answer

A government's policy of redistributing income makes the income distribution

Correct AnswerverifiedShow Answer

Table 20-15 Income Inequality in 2010 in the United States by Race The values in the table reflect the percentages of pre-tax-and-transfer income. Source: US Census Bureau -Refer to Table 20-15. Which race shows the least equal distribution of income?

Correct AnswerverifiedShow Answer

Which of the following is not an example of in-kind transfers?

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

When designing public policies, which income group would philosopher John Rawls argue needs the most attention?

Correct AnswerverifiedShow Answer

The income distribution in the United States shows that the income share of the top fifth of all families is

Correct AnswerverifiedShow Answer

The goal of liberalism is to

Correct AnswerverifiedShow Answer

The Supplemental Security Income (SSI) program focuses on the poor who are sick or disabled.

Correct AnswerverifiedShow Answer

The poverty line is based on the percentage of people who cannot afford an adequate diet.

Correct AnswerverifiedShow Answer

Table 20-7 -Refer to Table 20-7. Which of the following is the best overall conclusion to draw from the data?

Correct AnswerverifiedShow Answer

If the U.S. government determines that the cost of feeding an urban family of four is $5,200 per year, then the official poverty line for a family of that type is

Correct AnswerverifiedShow Answer

Which of the following is not a question that economists try to answer when measuring the distribution of income?

Correct AnswerverifiedShow Answer

Miguel is a 20 year old college student who works part-time and earns an annual income of $12,000. To smooth out his life cycle changes in income, Miguel can

Correct AnswerverifiedShow Answer

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

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Correct Answer
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