Question 1

Which U.S.welfare program is a means-tested,in-kind benefit?

Accepted Answer

A) Social Security 
B) Temporary Assistance to Needy Families 
C) food stamps 
D) unemployment insurance 
A) Social Security 
B) Temporary Assistance to Needy Families 
C) food stamps 
D) unemployment insurance

Question 2

An advantage for an individual of having employment-based insurance is that it:

Accepted Answer

A) increases moral hazard. 
B) increases the likelihood of adverse selection. 
C) increases government tax revenues. 
D) receives favorable tax treatment. 
A) increases moral hazard. 
B) increases the likelihood of adverse selection. 
C) increases government tax revenues. 
D) receives favorable tax treatment.

Question 3

Which factor is/are associated with poverty? I.lack of adequate employment
II.lack of education
III.lack of proficiency in English

Accepted Answer

A) I and II only 
B) I and III only 
C) II and III only 
D) I,II,and III 
A) I and II only 
B) I and III only 
C) II and III only 
D) I,II,and III

Question 4

In the United States,income inequality fell:

Accepted Answer

A) during the 1930s and 1940s. 
B) after 1980. 
C) during the years following World War II. 
D) after 1917 and has remained consistent since then. 
A) during the 1930s and 1940s. 
B) after 1980. 
C) during the years following World War II. 
D) after 1917 and has remained consistent since then.

Question 5

In the United States,inequality has increased over the past 25 years,in part because of rapid technological change.

Accepted Answer

A) True 
 B)False

Question 6

John Rawls believed that:

Accepted Answer

A) government has a small role in achieving an economically fair society. 
B) we should do unto others as we would like them to do unto us if we were in the same place. 
C) Robert Nozick's views of economic fairness are similar to his own view. 
D) government has no right to force people with high incomes to support others with lower incomes. 
A) government has a small role in achieving an economically fair society. 
B) we should do unto others as we would like them to do unto us if we were in the same place. 
C) Robert Nozick's views of economic fairness are similar to his own view. 
D) government has no right to force people with high incomes to support others with lower incomes.

Question 7

Poverty can be defined either in absolute terms or in relative terms.

Accepted Answer

A) True 
 B)False

Question 8

The Gini coefficient:

Accepted Answer

A) varies between 0 and 1. 
B) is also equal to the mean household income for a country. 
C) is the same for most industrially developed countries. 
D) is seldom used since it does not help one understand income inequality. 
A) varies between 0 and 1. 
B) is also equal to the mean household income for a country. 
C) is the same for most industrially developed countries. 
D) is seldom used since it does not help one understand income inequality.

Question 9

A social insurance program is aimed at:

Accepted Answer

A) keeping people from earning less than $10,000. 
B) people who have encountered unexpected financial distress. 
C) reducing the percentage of families living below the poverty line. 
D) households with children. 
A) keeping people from earning less than $10,000. 
B) people who have encountered unexpected financial distress. 
C) reducing the percentage of families living below the poverty line. 
D) households with children.

Question 10

The means-tested U.S.government health insurance program is:

Accepted Answer

A) Medicare. 
B) Medicaid. 
C) the Veterans Administration. 
D) health savings accounts. 
A) Medicare. 
B) Medicaid. 
C) the Veterans Administration. 
D) health savings accounts.

Question 11

In 2014,health care expenditures in the United States were approximately _____ per person.

Accepted Answer

A) $500 
B) $1,200 
C) $9,500 
D) $12,000 
A) $500 
B) $1,200 
C) $9,500 
D) $12,000

Question 12

If a nation's Gini coefficient is rising over time,it is an indicator of a(n):

Accepted Answer

A) increase in the poverty rate. 
B) decrease in the poverty rate. 
C) increase in income inequality. 
D) decrease in income inequality. 
A) increase in the poverty rate. 
B) decrease in the poverty rate. 
C) increase in income inequality. 
D) decrease in income inequality.

Question 13

People with more education have a lower poverty rate.

Accepted Answer

A) True 
 B)False

Question 14

Much of the rise in income inequality in the past 20 years in the United States comes from:

Accepted Answer

A) a rising gap among the incomes of highly educated workers. 
B) the use of median income levels instead of mean income levels. 
C) a predictable rising gap between the incomes of highly educated and less well educated workers. 
D) declining government controls on wage supports. 
A) a rising gap among the incomes of highly educated workers. 
B) the use of median income levels instead of mean income levels. 
C) a predictable rising gap between the incomes of highly educated and less well educated workers. 
D) declining government controls on wage supports.

Question 15

Most Americans receive their health insurance through:

Accepted Answer

A) Medicare. 
B) Medicaid. 
C) their employer. 
D) direct purchase. 
A) Medicare. 
B) Medicaid. 
C) their employer. 
D) direct purchase.

Question 16

A _____ program is one for which the recipient qualifies on the basis of _____.

Accepted Answer

A) social insurance;income 
B) means-tested;age 
C) means-tested;income 
D) social insurance;need 
A) social insurance;income 
B) means-tested;age 
C) means-tested;income 
D) social insurance;need

Question 17

Political conservatives and liberals:

Accepted Answer

A) both oppose programs associated with the welfare state. 
B) generally agree on their support of programs associated with the welfare state but disagree on the appropriate extent of these programs. 
C) have conflicting views;conservatives support programs associated with the welfare state,while liberals oppose such programs. 
D) have conflicting views;liberals support programs associated with the welfare state,while conservatives oppose such programs. 
A) both oppose programs associated with the welfare state. 
B) generally agree on their support of programs associated with the welfare state but disagree on the appropriate extent of these programs. 
C) have conflicting views;conservatives support programs associated with the welfare state,while liberals oppose such programs. 
D) have conflicting views;liberals support programs associated with the welfare state,while conservatives oppose such programs.

Question 18

Temporary Assistance for Needy Families is a means-tested program that:

Accepted Answer

A) offers assistance to anyone who is defined as below the poverty threshold. 
B) provides limited assistance to poor households with children. 
C) is essentially an in-kind benefit. 
D) is the same thing as Medicaid. 
A) offers assistance to anyone who is defined as below the poverty threshold. 
B) provides limited assistance to poor households with children. 
C) is essentially an in-kind benefit. 
D) is the same thing as Medicaid.

Question 19

The largest _____ program in the United States is _____.

Accepted Answer

A) social insurance;Medicaid 
B) social insurance;Social Security payments to retired persons 
C) means-tested;farmers' aid 
D) means-tested;Social Security payments to retired persons 
A) social insurance;Medicaid 
B) social insurance;Social Security payments to retired persons 
C) means-tested;farmers' aid 
D) means-tested;Social Security payments to retired persons

Question 20

Government payments to individuals for which no good or service is exchanged are:

Accepted Answer

A) spending. 
B) purchases. 
C) spending on goods and services. 
D) transfer payments. 
A) spending. 
B) purchases. 
C) spending on goods and services. 
D) transfer payments.

Exam 18: The Economics of the Welfare State

Which U.S.welfare program is a means-tested,in-kind benefit?

An advantage for an individual of having employment-based insurance is that it:

Which factor is/are associated with poverty? I.lack of adequate employment II.lack of education III.lack of proficiency in English

In the United States,income inequality fell:

In the United States,inequality has increased over the past 25 years,in part because of rapid technological change.

John Rawls believed that:

Poverty can be defined either in absolute terms or in relative terms.

The Gini coefficient:

A social insurance program is aimed at:

The means-tested U.S.government health insurance program is:

In 2014,health care expenditures in the United States were approximately _____ per person.

If a nation's Gini coefficient is rising over time,it is an indicator of a(n):

People with more education have a lower poverty rate.

Much of the rise in income inequality in the past 20 years in the United States comes from:

Most Americans receive their health insurance through:

A _____ program is one for which the recipient qualifies on the basis of _____.

Political conservatives and liberals:

Temporary Assistance for Needy Families is a means-tested program that:

The largest _____ program in the United States is _____.

Government payments to individuals for which no good or service is exchanged are:

First Principles

Economic Models: Trade-Offs and Trade

Consumer and Producer Surplus

Supply and Demand

Price Controls and Quotas: Meddling With Markets

Elasticity

Taxes

International Trade

Decision Making by Individuals and Firms

The Rational Consumer

Behind the Supply Curve: Inputs and Costs

Perfect Competition and the Supply Curve

Monopoly

Oligopoly

Monopolistic Competition and Product Differentiation

Externalities

Public Goods and Common Resources

Factor Markets and the Distribution of Income

Uncertainty, Risk, and Private Information

Graphs in Economics

Consumer Preferences and Consumer Choice

Filters

A _ program is one for which the recipient qualifies on the basis of _.

The largest _ program in the United States is _.