Question 1

Poverty programs are aimed at:

Accepted Answer

A) keeping people from earning less than $10,000. 
B) people who have run into problems paying for high-priced gas. 
C) reducing the percentage of families living below the poverty line. 
D) Social Security recipients. 
A) keeping people from earning less than $10,000. 
B) people who have run into problems paying for high-priced gas. 
C) reducing the percentage of families living below the poverty line. 
D) Social Security recipients.

Question 2

Food stamps,Medicaid,and housing subsidies are all:

Accepted Answer

A) negative income taxes. 
B) unemployment benefits. 
C) in-kind transfers. 
D) part of the Temporary Assistance for Needy Families program. 
A) negative income taxes. 
B) unemployment benefits. 
C) in-kind transfers. 
D) part of the Temporary Assistance for Needy Families program.

Question 3

In the United States in the first two decades following World War II:

Accepted Answer

A) income distribution became less equal. 
B) income-equality measures stayed the same. 
C) income distribution became more equal. 
D) there was no way to determine income distribution. 
A) income distribution became less equal. 
B) income-equality measures stayed the same. 
C) income distribution became more equal. 
D) there was no way to determine income distribution.

Question 4

There are six households in a rural community.Each household earns $40,000 per year.Suppose that a new resident builds a mansion in the community and that the income in the new household is $4 million per year.After the new resident arrives,the median household income has _____,and the mean household income has _____.

Accepted Answer

A) increased;increased 
B) not changed;increased 
C) increased;not changed 
D) not changed;not changed 
A) increased;increased 
B) not changed;increased 
C) increased;not changed 
D) not changed;not changed

Question 5

Which country gives all of its citizens a choice between private doctors and hospitals and care in a system run directly by the government?

Accepted Answer

A) the United States 
B) Canada 
C) France 
D) Great Britain 
A) the United States 
B) Canada 
C) France 
D) Great Britain

Question 6

Which program provides in-kind transfers?

Accepted Answer

A) the Earned Income Tax Credit 
B) Temporary Assistance for Needy Families 
C) Social Security 
D) Medicaid 
A) the Earned Income Tax Credit 
B) Temporary Assistance for Needy Families 
C) Social Security 
D) Medicaid

Question 7

Unemployment insurance is a(n)_____ that is _____.

Accepted Answer

A) monetary transfer;means-tested 
B) monetary transfer;not means-tested 
C) in-kind benefit;means-tested 
D) in-kind benefit;not means-tested 
A) monetary transfer;means-tested 
B) monetary transfer;not means-tested 
C) in-kind benefit;means-tested 
D) in-kind benefit;not means-tested

Question 8

The mean household income is:

Accepted Answer

A) the income of households lying at the exact middle of the income distribution. 
B) the average income across all households. 
C) the income level that policy makers wish to achieve for all households on average. 
D) also the poverty threshold level. 
A) the income of households lying at the exact middle of the income distribution. 
B) the average income across all households. 
C) the income level that policy makers wish to achieve for all households on average. 
D) also the poverty threshold level.

Question 9

The individual mandate is the requirement that:

Accepted Answer

A) each health care provider must provide care for Medicare patients. 
B) each health care provider must provide care for Medicaid patients. 
C) each individual must purchase health insurance. 
D) everyone must go to school for at least 12 years. 
A) each health care provider must provide care for Medicare patients. 
B) each health care provider must provide care for Medicaid patients. 
C) each individual must purchase health insurance. 
D) everyone must go to school for at least 12 years.

Question 10

Which program is NOT an antipoverty program?

Accepted Answer

A) the Earned Income Tax Credit 
B) Temporary Assistance for Needy Families 
C) Social Security 
D) Medicaid 
A) the Earned Income Tax Credit 
B) Temporary Assistance for Needy Families 
C) Social Security 
D) Medicaid

Question 11

Food stamps are an example of:

Accepted Answer

A) a negative income tax. 
B) an in-kind benefit. 
C) a monetary benefit. 
D) unemployment insurance. 
A) a negative income tax. 
B) an in-kind benefit. 
C) a monetary benefit. 
D) unemployment insurance.

Question 12

Increases in income inequality in the United States are partially attributed to:

Accepted Answer

A) equal and rising increases in the salaries of low-wage workers. 
B) the impact of technological innovation on the demand for labor. 
C) a reduction in the effect of international trade on the economy. 
D) stricter immigration policies. 
A) equal and rising increases in the salaries of low-wage workers. 
B) the impact of technological innovation on the demand for labor. 
C) a reduction in the effect of international trade on the economy. 
D) stricter immigration policies.

Question 13

In the United States since World War II,the distribution of income has:

Accepted Answer

A) become more nearly equal. 
B) become more unequal. 
C) stayed about the same. 
D) changed first toward equality and then,after 1968,toward greater inequality. 
A) become more nearly equal. 
B) become more unequal. 
C) stayed about the same. 
D) changed first toward equality and then,after 1968,toward greater inequality.

Question 14

Which U.S.welfare program is a monetary benefit that is NOT means-tested?

Accepted Answer

A) Earned Income Tax Credit 
B) Social Security 
C) food stamps 
D) Medicaid 
A) Earned Income Tax Credit 
B) Social Security 
C) food stamps 
D) Medicaid

Question 15

If the median household income in 2010 was $49,445:

Accepted Answer

A) the average income for a U.S.household was $49,445. 
B) poverty rates fell during this period. 
C) half of the households in the United States earned less than $49,445,and half earned more than $49,445. 
D) incomes in the United States were rising. 
A) the average income for a U.S.household was $49,445. 
B) poverty rates fell during this period. 
C) half of the households in the United States earned less than $49,445,and half earned more than $49,445. 
D) incomes in the United States were rising.

Question 16

A popular choice for the MOST important cause of the increase in income inequality in recent years is:

Accepted Answer

A) the elimination of many income redistribution programs. 
B) rapid technological change. 
C) the failing education system. 
D) the failing education system and rapid technological change. 
A) the elimination of many income redistribution programs. 
B) rapid technological change. 
C) the failing education system. 
D) the failing education system and rapid technological change.

Question 17

In 2015,which demographic group had the HIGHEST poverty rate?

Accepted Answer

A) African-Americans 
B) Hispanics 
C) Whites 
D) female-headed families with no husband present 
A) African-Americans 
B) Hispanics 
C) Whites 
D) female-headed families with no husband present

Question 18

Insurance companies attempt to minimize adverse selection by:

Accepted Answer

A) relying on the government to pay for health insurance. 
B) screening and employment-based health insurance. 
C) relying on the free market to allocate risk efficiently. 
D) charging high premiums to young,healthy people. 
A) relying on the government to pay for health insurance. 
B) screening and employment-based health insurance. 
C) relying on the free market to allocate risk efficiently. 
D) charging high premiums to young,healthy people.

Question 19

Which factor was NOT mentioned in the textbook as possibly increasing income inequality in the United States since 1968?

Accepted Answer

A) increases in immigration 
B) growth in international trade 
C) technological change 
D) a reduction in the number of people attending college 
A) increases in immigration 
B) growth in international trade 
C) technological change 
D) a reduction in the number of people attending college

Question 20

In 2014,the LARGEST share of health care costs was paid for by:

Accepted Answer

A) the government. 
B) private insurers. 
C) private individuals. 
D) charities. 
A) the government. 
B) private insurers. 
C) private individuals. 
D) charities.

Exam 18: The Economics of the Welfare State

Poverty programs are aimed at:

Food stamps,Medicaid,and housing subsidies are all:

In the United States in the first two decades following World War II:

Which country gives all of its citizens a choice between private doctors and hospitals and care in a system run directly by the government?

Which program provides in-kind transfers?

Unemployment insurance is a(n)_____ that is _____.

The mean household income is:

The individual mandate is the requirement that:

Which program is NOT an antipoverty program?

Food stamps are an example of:

Increases in income inequality in the United States are partially attributed to:

In the United States since World War II,the distribution of income has:

Which U.S.welfare program is a monetary benefit that is NOT means-tested?

If the median household income in 2010 was $49,445:

A popular choice for the MOST important cause of the increase in income inequality in recent years is:

In 2015,which demographic group had the HIGHEST poverty rate?

Insurance companies attempt to minimize adverse selection by:

Which factor was NOT mentioned in the textbook as possibly increasing income inequality in the United States since 1968?

In 2014,the LARGEST share of health care costs was paid for by:

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

Unemployment insurance is a(n)_ that is _.