Question 1

Over the last two decades, the share of income going to the rich has declined in the United States.

Accepted Answer

A) True 
 B)False  False

Question 2

The _______ a Lorenz curve lies to (from) the 45-degree line, the _______ the distribution of income.

Accepted Answer

A)  further; more equal 
B)  closer; less equal 
C)  further; more unequal 
D)  closer; better as far as economists are concerned. 
A)  further; more equal 
B)  closer; less equal 
C)  further; more unequal 
D)  closer; better as far as economists are concerned. C

Question 3

-(Exhibit: Discrimination) If blacks and whites have the same supply curve S, while blacks have demand curve D and whites have demand curve D', employment for blacks will be given by:

Accepted Answer

A)  L - M. 
B)  L + M. 
C)  L. 
D)  M. 
A)  L - M. 
B)  L + M. 
C)  L. 
D)  M. C

Question 4

Research by Rob Grunewald and Art Rolnick, cited in the Case in Point on early intervention programs suggested that governments can better promote economic development by supporting early childhood programs rather than by:

Accepted Answer

A)  replacing noncash assistance with cash assistance. 
B)  increasing class sizes at universities. 
C)  curtailing budgets and reducing deficits. 
D)  offering subsidies to new businesses or building sports stadiums. 
A)  replacing noncash assistance with cash assistance. 
B)  increasing class sizes at universities. 
C)  curtailing budgets and reducing deficits. 
D)  offering subsidies to new businesses or building sports stadiums.

Question 5

A money payment that a recipient may spend as he or she wishes is:

Accepted Answer

A)  the income effect. 
B)  the wealth effect. 
C)  noncash assistance. 
D)  cash assistance. 
A)  the income effect. 
B)  the wealth effect. 
C)  noncash assistance. 
D)  cash assistance.

Question 6

The text concludes that poor people are better off, from their own perspective, with noncash aid rather than cash grants.

Accepted Answer

A) True 
 B)False

Question 7

The poverty line is described by which of the following?

Accepted Answer

A)  It is a dollar figure. When a household income is equal to or less than this figure, the household is not considered to be poor. 
B)  It is a dollar figure above which a household's income is considered to be in the poor category. 
C)  In 2010 in the United States, the poverty line for a family of four was an income of $22,314. 
D)  The poverty line is the same for all family sizes. 
A)  It is a dollar figure. When a household income is equal to or less than this figure, the household is not considered to be poor. 
B)  It is a dollar figure above which a household's income is considered to be in the poor category. 
C)  In 2010 in the United States, the poverty line for a family of four was an income of $22,314. 
D)  The poverty line is the same for all family sizes.

Question 8

If you establish the value of goods and services necessary to provide a minimum standard of living below which people are poor, you have come up with an income test that is called a(n):

Accepted Answer

A)  means-tested test. 
B)  relative income test. 
C)  absolute income test. 
D)  nominal income test. 
A)  means-tested test. 
B)  relative income test. 
C)  absolute income test. 
D)  nominal income test.

Question 9

An income test devised to indicate poverty for those people whose incomes fall at the bottom quintile of the income distribution list is called an absolute income test.

Accepted Answer

A) True 
 B)False

Question 10

-(Exhibit: Income Distribution) Curve B shows that the lowest quintile of families gets approximately _______ percent of the income.

Accepted Answer

A)  2-4 
B)  7-10 
C)  12-14 
D)  17-19 
A)  2-4 
B)  7-10 
C)  12-14 
D)  17-19

Question 11

In 2010, approximately _______ percent of people below the poverty line received some form of cash assistance.

Accepted Answer

A)  4 
B)  14 
C)  20 
D)  54 
A)  4 
B)  14 
C)  20 
D)  54

Question 12

-(Exhibit: Income Distribution in the United States) In 2010, the lowest ________ percent of the families received _______ of the income.

Accepted Answer

A)  8.5; 20 
B)  20; 20 
C)  40; 11.8 
D)  40; 8.5 
A)  8.5; 20 
B)  20; 20 
C)  40; 11.8 
D)  40; 8.5

Question 13

In the United States in the 1990s and 2000s, the gap between the wages of college- and high-school-trained workers _______ and contributed to _______ .

Accepted Answer

A)  narrowed; rising equality 
B)  widened; rising inequality 
C)  narrowed; decreasing inequality 
D)  widened; rising equality 
A)  narrowed; rising equality 
B)  widened; rising inequality 
C)  narrowed; decreasing inequality 
D)  widened; rising equality

Question 14

The poverty line for a household with one person in 2010 was:

Accepted Answer

A)  about $8,000. 
B)  between $11,000 and $12,000. 
C)  between $16,000 and $17,000. 
D)  between $22,000 and $23,000. 
A)  about $8,000. 
B)  between $11,000 and $12,000. 
C)  between $16,000 and $17,000. 
D)  between $22,000 and $23,000.

Question 15

To the extent that labor market discrimination exists in a country:

Accepted Answer

A)  the country will not be allocating resources efficiently. 
B)  the country will be operating on its production possibilities curve. 
C)  the country will be operating beyond its production possibilities curve. 
D)  None of the above are true. 
A)  the country will not be allocating resources efficiently. 
B)  the country will be operating on its production possibilities curve. 
C)  the country will be operating beyond its production possibilities curve. 
D)  None of the above are true.

Question 16

The Case in Point titled "Welfare Reform in Britain and the United States indicated that the program in _____ did not require recipients to obtain jobs and that the reduction in case loads was smaller in _____.

Accepted Answer

A)  Britain; Britain 
B)  Britain; the United States 
C)  the United States; Britain 
D)  Britain; the United States. 
A)  Britain; Britain 
B)  Britain; the United States 
C)  the United States; Britain 
D)  Britain; the United States.

Question 17

Reform to the welfare system in the United States in 1996 eliminated:

Accepted Answer

A)  work requirements. 
B)  poverty. 
C)  noncash benefits. 
D)  the entitlement aspect of welfare. 
A)  work requirements. 
B)  poverty. 
C)  noncash benefits. 
D)  the entitlement aspect of welfare.

Question 18

For the most part, poverty programs are funded by _______ government(s).

Accepted Answer

A)  state 
B)  the federal 
C)  municipal 
D)  a combination of state and local 
A)  state 
B)  the federal 
C)  municipal 
D)  a combination of state and local

Question 19

An income test devised to indicate poverty for those people whose incomes fall at the bottom of the income distribution is called a(n):

Accepted Answer

A)  means-tested test. 
B)  relative income test. 
C)  absolute income test. 
D)  nominal income test. 
A)  means-tested test. 
B)  relative income test. 
C)  absolute income test. 
D)  nominal income test.

Question 20

Studies of family income over time reveal that:

Accepted Answer

A)  most people in the lowest quintile tend to stay there over their lifetimes. 
B)  income mobility is rare for all quintiles of the income distribution. 
C)  many people who move down the income ladder tend to be young. 
D)  many people who start out at the bottom of the income ladder when they are young move up the income ladder as they age. 
A)  most people in the lowest quintile tend to stay there over their lifetimes. 
B)  income mobility is rare for all quintiles of the income distribution. 
C)  many people who move down the income ladder tend to be young. 
D)  many people who start out at the bottom of the income ladder when they are young move up the income ladder as they age.

Over the last two decades, the share of income going to the rich has declined in the United States.

The _ a Lorenz curve lies to (from) the 45-degree line, the _ the distribution of income.

-(Exhibit: Discrimination) If blacks and whites have the same supply curve S, while blacks have demand curve D and whites have demand curve D', employment for blacks will be given by:

Research by Rob Grunewald and Art Rolnick, cited in the Case in Point on early intervention programs suggested that governments can better promote economic development by supporting early childhood programs rather than by:

A money payment that a recipient may spend as he or she wishes is:

The text concludes that poor people are better off, from their own perspective, with noncash aid rather than cash grants.

The poverty line is described by which of the following?

If you establish the value of goods and services necessary to provide a minimum standard of living below which people are poor, you have come up with an income test that is called a(n):

An income test devised to indicate poverty for those people whose incomes fall at the bottom quintile of the income distribution list is called an absolute income test.

-(Exhibit: Income Distribution) Curve B shows that the lowest quintile of families gets approximately _______ percent of the income.

In 2010, approximately _______ percent of people below the poverty line received some form of cash assistance.

-(Exhibit: Income Distribution in the United States) In 2010, the lowest __ percent of the families received _ of the income.

In the United States in the 1990s and 2000s, the gap between the wages of college- and high-school-trained workers _ and contributed to _ .

The poverty line for a household with one person in 2010 was:

To the extent that labor market discrimination exists in a country:

The Case in Point titled "Welfare Reform in Britain and the United States indicated that the program in _ did not require recipients to obtain jobs and that the reduction in case loads was smaller in _.

Reform to the welfare system in the United States in 1996 eliminated:

For the most part, poverty programs are funded by _______ government(s).

An income test devised to indicate poverty for those people whose incomes fall at the bottom of the income distribution is called a(n):

Studies of family income over time reveal that:

Economics: the Study of Choice

Demand and Supply

Applications of Demand and Supply

Macroeconomics: the Big Picture

Measuring Total Output and Income

Aggregate Demand and Aggregate Supply

Economic Growth

The Nature and Creation of Money

Financial Markets and the Economy

Monetary Policy and the Fed

Government and Fiscal Policy

Consumption and the Aggregate Expenditures Model

Investment and Economic Activity

Net Exports and International Finance

Inflation and Unemployment

A Brief History of Macroeconomic Thought and Policy

Economic Development

Socialist Economies in Transition

Filters

Exam 18: Inequality, Poverty, and Discrimination

Over the last two decades, the share of income going to the rich has declined in the United States.

The _______ a Lorenz curve lies to (from) the 45-degree line, the _______ the distribution of income.

-(Exhibit: Discrimination) If blacks and whites have the same supply curve S, while blacks have demand curve D and whites have demand curve D', employment for blacks will be given by:

Research by Rob Grunewald and Art Rolnick, cited in the Case in Point on early intervention programs suggested that governments can better promote economic development by supporting early childhood programs rather than by:

A money payment that a recipient may spend as he or she wishes is:

The text concludes that poor people are better off, from their own perspective, with noncash aid rather than cash grants.

The poverty line is described by which of the following?

If you establish the value of goods and services necessary to provide a minimum standard of living below which people are poor, you have come up with an income test that is called a(n):

An income test devised to indicate poverty for those people whose incomes fall at the bottom quintile of the income distribution list is called an absolute income test.

-(Exhibit: Income Distribution) Curve B shows that the lowest quintile of families gets approximately _______ percent of the income.

In 2010, approximately _______ percent of people below the poverty line received some form of cash assistance.

-(Exhibit: Income Distribution in the United States) In 2010, the lowest ________ percent of the families received _______ of the income.

In the United States in the 1990s and 2000s, the gap between the wages of college- and high-school-trained workers _______ and contributed to _______ .

The poverty line for a household with one person in 2010 was:

To the extent that labor market discrimination exists in a country:

The Case in Point titled "Welfare Reform in Britain and the United States indicated that the program in _____ did not require recipients to obtain jobs and that the reduction in case loads was smaller in _____.

Reform to the welfare system in the United States in 1996 eliminated:

For the most part, poverty programs are funded by _______ government(s).

An income test devised to indicate poverty for those people whose incomes fall at the bottom of the income distribution is called a(n):

Studies of family income over time reveal that:

Economics: the Study of Choice

Demand and Supply

Applications of Demand and Supply

Macroeconomics: the Big Picture

Measuring Total Output and Income

Aggregate Demand and Aggregate Supply

Economic Growth

The Nature and Creation of Money

Financial Markets and the Economy

Monetary Policy and the Fed

Government and Fiscal Policy

Consumption and the Aggregate Expenditures Model

Investment and Economic Activity

Net Exports and International Finance

Inflation and Unemployment

A Brief History of Macroeconomic Thought and Policy

Economic Development

Socialist Economies in Transition

Filters

The _ a Lorenz curve lies to (from) the 45-degree line, the _ the distribution of income.

-(Exhibit: Income Distribution in the United States) In 2010, the lowest __ percent of the families received _ of the income.

In the United States in the 1990s and 2000s, the gap between the wages of college- and high-school-trained workers _ and contributed to _ .

The Case in Point titled "Welfare Reform in Britain and the United States indicated that the program in _ did not require recipients to obtain jobs and that the reduction in case loads was smaller in _.