Exam 15: Income Inequality and Poverty

As the War on Poverty programs were instituted and transfer payments expanded in the last half of the 1960s, what happened to the poverty rate?

Which of the following is true about income distribution?

When a person who receives welfare benefits earns income, those benefits are reduced as earned income rises. This is referred to as

-As shown in Figure 15-1, 60 percent of families earned a cumulative share of about ____ of income.

Data on income inequality in the United States indicate that

Income mobility studies suggest that poverty

The poverty threshold income level is

Assume that DeShawn is a single parent who is in poverty. He receives food stamps and Medicaid. For every $100 that he earns, DeShawn loses $35 of his food stamp benefits and $20 in his Medicaid benefits. Also, DeShawn's income is taxed at a rate of 10 percent. Then, Peter's effective marginal tax rate is

The poverty threshold income level equals the

The poverty threshold income level is

-As shown in Figure 15-3, the perfect equality line is drawn between points

When determining whether an income places a family or individual in poverty, the official poverty rate excludes

The phenomenon that describes how transfer programs, which significantly reduce the adversities of poverty, also reduce the opportunity cost of choices that often lead to poverty is known as

If a family earned an additional $6,000 and, as a consequence, sustained a reduction of $3,600 in government benefits, the implicit marginal tax rate for this family would be

Means-tested income transfers refer to

Which of the following contributed to the increase in income inequality among families in the United States during the 1980s and 1990s?

Suppose you had the choice of attending two universities. University A pays all of its professors the same wage and awards the same raises. University B pays each professor according to market wages and productivity. Which university would you rather attend and why?

Which of the following is true about income inequality?

Which of the following is not counted as income when the official poverty rate is calculated?

The amount of additional earnings that must be paid explicitly in taxes or implicitly in the form of a reduction in income supplements is known as the