Question 1

In 2015, the poverty line for a family of four in the United States was an income of about $24,000.

Accepted Answer

A) True 
 B)False

Question 2

In some ways, poverty is an absolute concept, but more generally it is a relative one.

Accepted Answer

A) True 
 B)False

Question 3

In the 1990s and early 2000s, the gap between the wages of skilled workers and unskilled workers in the United States decreased.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following demographic groups in the United States has the highest poverty rate?

Accepted Answer

A)  married couple families 
B)  college graduates 
C)  non-Hispanic whites 
D)  People aged 18 to 64 who did not work at least a week 
A)  married couple families 
B)  college graduates 
C)  non-Hispanic whites 
D)  People aged 18 to 64 who did not work at least a week

Question 5

Setting a specific income level and then defining a person as poor if his or her income falls below that level is called a relative income test.

Accepted Answer

A) True 
 B)False

Question 6

Use the following to answer questions.
Exhibit: Income Distribution  
-(Exhibit: Income Distribution) Curve A represents:

Accepted Answer

A)  a line of unequal income distribution. 
B)  a line of equal distribution of income. 
C)  a distribution of income where 20 percent of the families get 60 percent of the income, and 60 percent of the families get 20 percent of the income. 
D)  the ideal distribution of income, according to market economists. 
A)  a line of unequal income distribution. 
B)  a line of equal distribution of income. 
C)  a distribution of income where 20 percent of the families get 60 percent of the income, and 60 percent of the families get 20 percent of the income. 
D)  the ideal distribution of income, according to market economists.

Question 7

Discrimination has been a major source of higher wages for blacks and other nonwhite minorities in the United States since the 1950s.

Accepted Answer

A) True 
 B)False

Question 8

Although poor people receive more cash assistance than noncash assistance, noncash assistance would tend to make them better off.

Accepted Answer

A) True 
 B)False

Question 9

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 10

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 11

Most welfare assistance in the United States is in the form of cash payments.

Accepted Answer

A) True 
 B)False

Question 12

The age group in the United States with the highest poverty rate is _______ years old.

Accepted Answer

A)  under 18 
B)  25-44 
C)  35-44 
D)  45-64 
A)  under 18 
B)  25-44 
C)  35-44 
D)  45-64

Question 13

In 2015, only about 30 percent of the people below the poverty line in the United States received some form of assistance.

Accepted Answer

A) True 
 B)False

Question 14

According to the text, it is generally agreed that in the United States since World War II, the distribution of income has:

Accepted Answer

A)  become more equal. 
B)  become less equal. 
C)  stayed about the same. 
D)  changed first toward greater equality and then, after the late 1960s, toward greater inequality. 
A)  become more equal. 
B)  become less equal. 
C)  stayed about the same. 
D)  changed first toward greater equality and then, after the late 1960s, toward greater inequality.

Question 15

The economist Gary Becker concluded that discrimination occurs because of people's:

Accepted Answer

A)  preferences. 
B)  innate meanness. 
C)  lack of education. 
D)  greed. 
A)  preferences. 
B)  innate meanness. 
C)  lack of education. 
D)  greed.

Question 16

The total number of poor people in the United States in 2015 was about ________ million.

Accepted Answer

A)  10 
B)  25 
C)  32 
D)  43 
A)  10 
B)  25 
C)  32 
D)  43

Question 17

According to the text, a number of studies have concluded that black male workers earn about ________ percent less than white males due to labor-market discrimination.

Accepted Answer

A)  5 
B)  15 
C)  30 
D)  50 
A)  5 
B)  15 
C)  30 
D)  50

Question 18

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

Accepted Answer

A)  defined a minimum period of eligibility. 
B)  gave states the power to design their own welfare programs. 
C)  increased noncash benefits after 2 years. 
D)  increased cash benefits after 2 years. 
A)  defined a minimum period of eligibility. 
B)  gave states the power to design their own welfare programs. 
C)  increased noncash benefits after 2 years. 
D)  increased cash benefits after 2 years.

Question 19

Poverty tends to be more severe for the elderly over the age of 65 than for females who are the head of a household without husbands present.

Accepted Answer

A) True 
 B)False

Question 20

If a female professor receives a higher salary than a male professor, this must be due to discrimination.

Accepted Answer

A) True 
 B)False

In 2015, the poverty line for a family of four in the United States was an income of about $24,000.

In some ways, poverty is an absolute concept, but more generally it is a relative one.

In the 1990s and early 2000s, the gap between the wages of skilled workers and unskilled workers in the United States decreased.

Which of the following demographic groups in the United States has the highest poverty rate?

Setting a specific income level and then defining a person as poor if his or her income falls below that level is called a relative income test.

Use the following to answer questions. Exhibit: Income Distribution -(Exhibit: Income Distribution) Curve A represents:

Discrimination has been a major source of higher wages for blacks and other nonwhite minorities in the United States since the 1950s.

Although poor people receive more cash assistance than noncash assistance, noncash assistance would tend to make them better off.

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

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

Most welfare assistance in the United States is in the form of cash payments.

The age group in the United States with the highest poverty rate is _______ years old.

In 2015, only about 30 percent of the people below the poverty line in the United States received some form of assistance.

According to the text, it is generally agreed that in the United States since World War II, the distribution of income has:

The economist Gary Becker concluded that discrimination occurs because of people's:

The total number of poor people in the United States in 2015 was about ________ million.

According to the text, a number of studies have concluded that black male workers earn about ________ percent less than white males due to labor-market discrimination.

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

Poverty tends to be more severe for the elderly over the age of 65 than for females who are the head of a household without husbands present.

If a female professor receives a higher salary than a male professor, this must be due to discrimination.

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

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Exam 18: Inequality, Poverty, and Discrimination

In 2015, the poverty line for a family of four in the United States was an income of about $24,000.

In some ways, poverty is an absolute concept, but more generally it is a relative one.

In the 1990s and early 2000s, the gap between the wages of skilled workers and unskilled workers in the United States decreased.

Which of the following demographic groups in the United States has the highest poverty rate?

Setting a specific income level and then defining a person as poor if his or her income falls below that level is called a relative income test.

Use the following to answer questions. Exhibit: Income Distribution -(Exhibit: Income Distribution) Curve A represents:

Discrimination has been a major source of higher wages for blacks and other nonwhite minorities in the United States since the 1950s.

Although poor people receive more cash assistance than noncash assistance, noncash assistance would tend to make them better off.

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

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

Most welfare assistance in the United States is in the form of cash payments.

The age group in the United States with the highest poverty rate is _______ years old.

In 2015, only about 30 percent of the people below the poverty line in the United States received some form of assistance.

According to the text, it is generally agreed that in the United States since World War II, the distribution of income has:

The economist Gary Becker concluded that discrimination occurs because of people's:

The total number of poor people in the United States in 2015 was about ________ million.

According to the text, a number of studies have concluded that black male workers earn about ________ percent less than white males due to labor-market discrimination.

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

Poverty tends to be more severe for the elderly over the age of 65 than for females who are the head of a household without husbands present.

If a female professor receives a higher salary than a male professor, this must be due to discrimination.

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