Exam 12: Income Distribution, Poverty, and Discrimination

In determining the poverty level, the Census Bureau counts cash transfers, but not in-kind transfers, thereby understating the actual amount of antipoverty transfers made.

Wage discrimination means minority workers are paid unequal wages.

The largest in-kind transfer program is:

The social security tax is called FICA, which stands for:

The poverty line:

Which of the following statements is true?

In the United States, approximately what percentage of the total income is earned by the highest 5 percent of the families?

Which of the following countries has a Lorenz curve that is furthest away from the perfect equality line?​

Between 1929 and 2005 in the United States, as measured by the Lorenz curve, income inequality:

If we compare median family income in the U.S. for families headed by an adult with no more than a high school education to that of families headed by an adult with a bachelor's degree, which of the following best describes what we will find?

Exhibit 12-2 Lorenz curve -As shown in Exhibit 12-2, 60 percent of families earned a cumulative share of about ____ of income.

The poverty rate for African Americans has remained approximately equal in the U.S. since the late 1950s.

Exhibit 12-5 Economic curves -In Exhibit 12-5, a Lorenz curve is shown in diagram:

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

Which of the following is not an in-kind subsidy?

Which of the following statements is true?

Which of the following most closely represents the share of total U.S. income to the poorest 20 percent of all U.S. families?

What is the official definition of the poverty line? What are some causes of poverty?

Describe the advantages that a negative income tax has over other programs that have the same purpose.

Statistics on families below the poverty line may be overstated because: