Question 1

In determining the official poverty rate in the United States:

Accepted Answer

A)  only cash income is counted. 
B)  cash and noncash income are counted. 
C)  cash, food stamps, and TANF payments are all that is counted. 
D)  food and medical care are counted. 
A)  only cash income is counted. 
B)  cash and noncash income are counted. 
C)  cash, food stamps, and TANF payments are all that is counted. 
D)  food and medical care are counted.

Question 2

Use the following to answer questions .
Exhibit: Income Distribution in the United States
  
-(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 3

Poverty, in large measure (and according to the authors of the text), is a(n) ________ concept.

Accepted Answer

A)  worthless 
B)  absolute 
C)  relative 
D)  irrelevant 
A)  worthless 
B)  absolute 
C)  relative 
D)  irrelevant

Question 4

Use the following to answer questions .
Exhibit: Discrimination Model  
-(Exhibit: Discrimination Model) If there is no discrimination in the market and blacks have the same demand and supply curves as whites, then the wage will be _______ and the quantity of labor hired will be _______ .

Accepted Answer

A)  W1; L1  
B)  W; L1  
C)  W; L 
D)  W1; L 
A)  W1; L1  
B)  W; L1  
C)  W; L 
D)  W1; L

Question 5

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.

Question 6

Which of the following statements about the distribution of income in the United States is true?

Accepted Answer

A)  Since 1967, the distribution of income has become more unequal. 
B)  Since 1967, the share of income going to the richest families has decreased. 
C)  Since 1967, the share of income going to the poorest families has risen. 
D)  The degree of inequality in the distribution of income remained stable between 1967 and 2015. 
A)  Since 1967, the distribution of income has become more unequal. 
B)  Since 1967, the share of income going to the richest families has decreased. 
C)  Since 1967, the share of income going to the poorest families has risen. 
D)  The degree of inequality in the distribution of income remained stable between 1967 and 2015.

Question 7

Use the following to answer questions.
Exhibit: Discrimination  
-(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 whites 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.

Question 8

The provision of specific goods and services to poor people 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 9

Relative poverty might be defined based on the:

Accepted Answer

A)  ratio of food expenditures to housing expenditures. 
B)  ratio of housing expenditures to total expenditures. 
C)  relative proportion of income spent on food. 
D)  upper limit of income in the lowest one-fifth of the income distribution. 
A)  ratio of food expenditures to housing expenditures. 
B)  ratio of housing expenditures to total expenditures. 
C)  relative proportion of income spent on food. 
D)  upper limit of income in the lowest one-fifth of the income distribution.

Question 10

Use the following to answer questions .
Exhibit: Income Distribution in the United States
  
-(Exhibit: Income Distribution in the United States) Which of the following statements is true?

Accepted Answer

A)  For 1968, a point on the Lorenz curve would show the lowest 40 percent of the families receiving 15.3 percent of the income. 
B)  For 2010, a point on the Lorenz curve would show the lowest 80 percent of the families receiving 49.4 percent of the income. 
C)  For 1968, a point on the Lorenz curve would show the lowest 80 percent of the families receiving 24.5 percent of the income. 
D)  For 2010, the lowest 40 percent of the families received 8.9 percent of the income. 
A)  For 1968, a point on the Lorenz curve would show the lowest 40 percent of the families receiving 15.3 percent of the income. 
B)  For 2010, a point on the Lorenz curve would show the lowest 80 percent of the families receiving 49.4 percent of the income. 
C)  For 1968, a point on the Lorenz curve would show the lowest 80 percent of the families receiving 24.5 percent of the income. 
D)  For 2010, the lowest 40 percent of the families received 8.9 percent of the income.

Question 11

A factor that has been associated with the increase in income inequality in the United States is the:

Accepted Answer

A)  increase in households headed by single women. 
B)  reduction in the percentage of the population over the age of 65. 
C)  smaller gap between the wages of skilled and unskilled workers. 
D)  slowdown in technological change. 
A)  increase in households headed by single women. 
B)  reduction in the percentage of the population over the age of 65. 
C)  smaller gap between the wages of skilled and unskilled workers. 
D)  slowdown in technological change.

Question 12

Use the following to answer questions .
Exhibit: Income Distribution in the United States
  
-(Exhibit: Income Distribution in the United States) From 1968 to 2010, the distribution of income in the United States became:

Accepted Answer

A)  more equal. 
B)  more unequal. 
C)  unmeasurable. 
D)  closer to the 45-degree line. 
A)  more equal. 
B)  more unequal. 
C)  unmeasurable. 
D)  closer to the 45-degree line.

Question 13

The poverty rate for Hispanics of any race in the United States in 2015 was about _______ percent.

Accepted Answer

A)  3 
B)  10 
C)  22 
D)  40 
A)  3 
B)  10 
C)  22 
D)  40

Question 14

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

Accepted Answer

A)  defined a maximum period of eligibility. 
B)  gave states less scope in designing their own welfare programs. 
C)  increased noncash benefits after 2 years. 
D)  increased cash benefits after 2 years. 
A)  defined a maximum period of eligibility. 
B)  gave states less scope in designing their own welfare programs. 
C)  increased noncash benefits after 2 years. 
D)  increased cash benefits after 2 years.

Question 15

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

Question 16

Gary Becker concluded that discrimination occurs because of people's preferences or attitudes.

Accepted Answer

A) True 
 B)False

Question 17

Between 1968 and 2015, the Lorenz curve of the United States became:

Accepted Answer

A)  a straight line. 
B)  closer to the 45-degree line. 
C)  more bowed out. 
D)  more bowed in. 
A)  a straight line. 
B)  closer to the 45-degree line. 
C)  more bowed out. 
D)  more bowed in.

Question 18

Use the following to answer questions.
Exhibit: Income Distribution  
-(Exhibit: Income Distribution) Curve B shows that the fourth quintile of families gets approximately _______ percent of the income.

Accepted Answer

A)  20 
B)  40 
C)  60 
D)  80 
A)  20 
B)  40 
C)  60 
D)  80

Question 19

Compare and contrast the issues involved in making a policy choice between the use of cash versus noncash assistance to alleviate poverty.

Accepted Answer

When making a policy choice between the

Question 20

In 2015, approximately _______ percent of people below the poverty line received some form of cash assistance.

Accepted Answer

A)  4 
B)  10 
C)  18 
D)  54 
A)  4 
B)  10 
C)  18 
D)  54

In determining the official poverty rate in the United States:

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

Poverty, in large measure (and according to the authors of the text), is a(n) ________ concept.

Use the following to answer questions . Exhibit: Discrimination Model -(Exhibit: Discrimination Model) If there is no discrimination in the market and blacks have the same demand and supply curves as whites, then the wage will be _ and the quantity of labor hired will be _ .

Studies of family income over time reveal that:

Which of the following statements about the distribution of income in the United States is true?

Use the following to answer questions. Exhibit: Discrimination -(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 whites will be given by:

The provision of specific goods and services to poor people is:

Relative poverty might be defined based on the:

Use the following to answer questions . Exhibit: Income Distribution in the United States -(Exhibit: Income Distribution in the United States) Which of the following statements is true?

A factor that has been associated with the increase in income inequality in the United States is the:

Use the following to answer questions . Exhibit: Income Distribution in the United States -(Exhibit: Income Distribution in the United States) From 1968 to 2010, the distribution of income in the United States became:

The poverty rate for Hispanics of any race in the United States in 2015 was about _______ percent.

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

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

Gary Becker concluded that discrimination occurs because of people's preferences or attitudes.

Between 1968 and 2015, the Lorenz curve of the United States became:

Use the following to answer questions. Exhibit: Income Distribution -(Exhibit: Income Distribution) Curve B shows that the fourth quintile of families gets approximately _______ percent of the income.

Compare and contrast the issues involved in making a policy choice between the use of cash versus noncash assistance to alleviate poverty.

In 2015, approximately _______ percent of people below the poverty line received some form of cash assistance.

Economics: the Study of Choice

Demand and Supply

Applications of Supply and Demand

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

Filters

Exam 18: Inequality, Poverty, and Discrimination

In determining the official poverty rate in the United States:

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

Poverty, in large measure (and according to the authors of the text), is a(n) ________ concept.

Use the following to answer questions . Exhibit: Discrimination Model -(Exhibit: Discrimination Model) If there is no discrimination in the market and blacks have the same demand and supply curves as whites, then the wage will be _______ and the quantity of labor hired will be _______ .

Studies of family income over time reveal that:

Which of the following statements about the distribution of income in the United States is true?

Use the following to answer questions. Exhibit: Discrimination -(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 whites will be given by:

The provision of specific goods and services to poor people is:

Relative poverty might be defined based on the:

Use the following to answer questions . Exhibit: Income Distribution in the United States -(Exhibit: Income Distribution in the United States) Which of the following statements is true?

A factor that has been associated with the increase in income inequality in the United States is the:

Use the following to answer questions . Exhibit: Income Distribution in the United States -(Exhibit: Income Distribution in the United States) From 1968 to 2010, the distribution of income in the United States became:

The poverty rate for Hispanics of any race in the United States in 2015 was about _______ percent.

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

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

Gary Becker concluded that discrimination occurs because of people's preferences or attitudes.

Between 1968 and 2015, the Lorenz curve of the United States became:

Use the following to answer questions. Exhibit: Income Distribution -(Exhibit: Income Distribution) Curve B shows that the fourth quintile of families gets approximately _______ percent of the income.

Compare and contrast the issues involved in making a policy choice between the use of cash versus noncash assistance to alleviate poverty.

In 2015, approximately _______ percent of people below the poverty line received some form of cash assistance.

Economics: the Study of Choice

Demand and Supply

Applications of Supply and Demand

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

Filters

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

Use the following to answer questions . Exhibit: Discrimination Model -(Exhibit: Discrimination Model) If there is no discrimination in the market and blacks have the same demand and supply curves as whites, then the wage will be _ and the quantity of labor hired will be _ .