Question 1

Of the following demographic groups, which has the lowest poverty rate in the U.S.?

Accepted Answer

A)  Families headed by a female with no adult male present. 
B)  Families in which the "head of the household" has not attained a high-school education. 
C)  Families headed by a male with no adult female present. 
D)  Families in which the "head of the household" has attained at least a bachelor's degree from a college or university. 
A)  Families headed by a female with no adult male present. 
B)  Families in which the "head of the household" has not attained a high-school education. 
C)  Families headed by a male with no adult female present. 
D)  Families in which the "head of the household" has attained at least a bachelor's degree from a college or university.

Question 2

The level of money income below which a family is considered poor is called the:

Accepted Answer

A)  bottom 20 percent of the income distribution. 
B)  poverty income level. 
C)  guaranteed income level. 
D)  subsistence income level. 
A)  bottom 20 percent of the income distribution. 
B)  poverty income level. 
C)  guaranteed income level. 
D)  subsistence income level.

Question 3

SNAP (food stamps) and Medicaid are examples of:

Accepted Answer

A)  money transfers 
B)  resource earnings 
C)  in-kind transfers 
D)  tax expenditures 
A)  money transfers 
B)  resource earnings 
C)  in-kind transfers 
D)  tax expenditures

Question 4

Which of the following government programs provides recipients with unrestricted cash payments?

Accepted Answer

A)  Temporary Assistance to Needy Families (TANF). 
B)  Medicaid. 
C)  The food stamp program (SNAP). 
D)  Housing assistance programs. 
A)  Temporary Assistance to Needy Families (TANF). 
B)  Medicaid. 
C)  The food stamp program (SNAP). 
D)  Housing assistance programs.

Question 5

Under a negative income tax system, people can make payments to or receive them from the IRS.

Accepted Answer

A) True 
 B)False

Question 6

Make a case for income inequality.

Accepted Answer

First, by rewarding people for their pro

Question 7

Exhibit 12-1 Income distribution for three countries $$\begin{array} { | l | c | c | c | } 
\hline \text { Quintile } & \text { Country I (\%) } & \text { Country II (\%) } & \text { Country III (\%) } \
\hline\text { Poorest } & 6 & 8 & 4 \
\text { Second } & 12 & 12 & 8 \
\text { Third } & 15 & 15 & 10 \
\text { Fourth } & 27 & 30 & 30 \
\text { Richest } & 40 & 35 & 48 \
\hline
\end{array}$$
-Exhibit 12-1 shows the percentage of income received by each population quintile. In Country II we can conclude that the:

Accepted Answer

A)  least-wealthy 20 percent of the population received 75 percent of the economy's income. 
B)  least-wealthy 20 percent of the population received 25 percent of the economy's income. 
C)  richest 20 percent of the population received 25 percent of the economy's income. 
D)  richest 40 percent of the population received 25 percent of the economy's income. 
E)  least-wealthy 40 percent of the population received 25 percent of the economy's income. 
A)  least-wealthy 20 percent of the population received 75 percent of the economy's income. 
B)  least-wealthy 20 percent of the population received 25 percent of the economy's income. 
C)  richest 20 percent of the population received 25 percent of the economy's income. 
D)  richest 40 percent of the population received 25 percent of the economy's income. 
E)  least-wealthy 40 percent of the population received 25 percent of the economy's income.

Question 8

In an economy where the poorest quintile of the population receives 5 percent of the income, the Lorenz curve:

Accepted Answer

A)  is the diagonal of the box. 
B)  lies below the diagonal in the box. 
C)  lies above the diagonal in the box. 
D)  is the lower right corner of the box. 
E)  is the upper left corner of the box. 
A)  is the diagonal of the box. 
B)  lies below the diagonal in the box. 
C)  lies above the diagonal in the box. 
D)  is the lower right corner of the box. 
E)  is the upper left corner of the box.

Question 9

Exhibit 12-1 Income distribution for three countries $$\begin{array} { | l | c | c | c | } 
\hline \text { Quintile } & \text { Country I (\%) } & \text { Country II (\%) } & \text { Country III (\%) } \
\hline\text { Poorest } & 6 & 8 & 4 \
\text { Second } & 12 & 12 & 8 \
\text { Third } & 15 & 15 & 10 \
\text { Fourth } & 27 & 30 & 30 \
\text { Richest } & 40 & 35 & 48 \
\hline
\end{array}$$
-Exhibit 12-1 shows the percentage of income received by each population quintile. In Country I we can conclude that the:

Accepted Answer

A)  richest 20 percent of the population received 25 percent of the economy's income. 
B)  richest 20 percent of the population received 40 percent of the economy's income. 
C)  richest 20 percent of the population received 80 percent of the economy's income. 
D)  least-wealthy 20 percent of the population received 40 percent of the economy's income. 
E)  richest 40 percent of the population received 25 percent of the economy's income. 
A)  richest 20 percent of the population received 25 percent of the economy's income. 
B)  richest 20 percent of the population received 40 percent of the economy's income. 
C)  richest 20 percent of the population received 80 percent of the economy's income. 
D)  least-wealthy 20 percent of the population received 40 percent of the economy's income. 
E)  richest 40 percent of the population received 25 percent of the economy's income.

Question 10

Exhibit 12-3 Lorenz curve for an economy  
-If this economy's distribution of income becomes more equal, then the Lorenz curve shown in Exhibit 12-3 will:

Accepted Answer

A)  move closer to the 45° line. 
B)  become more bowed outward. 
C)  lie above the 45° line. 
D)  shift down and to the right. 
A)  move closer to the 45° line. 
B)  become more bowed outward. 
C)  lie above the 45° line. 
D)  shift down and to the right.

Question 11

Critics of an equal distribution of income argue that the effect would be to reduce the incentive to be productive.

Accepted Answer

A) True 
 B)False

Question 12

If there is employment discrimination against minorities, this will cause the:

Accepted Answer

A)  supply of their services to increase, and their wages to fall. 
B)  demand for their services to decline, and their wages to fall. 
C)  supply of their services to decline, and their wages to rise. 
D)  demand for their services to decline, and their wages to rise. 
A)  supply of their services to increase, and their wages to fall. 
B)  demand for their services to decline, and their wages to fall. 
C)  supply of their services to decline, and their wages to rise. 
D)  demand for their services to decline, and their wages to rise.

Question 13

Exhibit 12-4 Lorenz curve  
-As shown in Exhibit 12-4, 20 percent of families earned a cumulative share of about ____ percent of income.

Accepted Answer

A)  5 
B)  10 
C)  30 
D)  50 
A)  5 
B)  10 
C)  30 
D)  50

Question 14

Since 1929, the distribution of income in the United States has become:

Accepted Answer

A)  substantially more equal. 
B)  slightly more equal. 
C)  slightly more unequal. 
D)  substantially more unequal. 
A)  substantially more equal. 
B)  slightly more equal. 
C)  slightly more unequal. 
D)  substantially more unequal.

Question 15

The government defines poverty as an income level less than three times the cost of a minimal diet.

Accepted Answer

A) True 
 B)False

Question 16

Describe the comparable worth controversy?

Accepted Answer

Although a comparable worth pay system m

Question 17

In a Lorenz curve diagram, the 45° line represents:

Accepted Answer

A)  perfect income equality. 
B)  zero inflation. 
C)  a negative income tax. 
D)  an extremely unequal distribution of income. 
A)  perfect income equality. 
B)  zero inflation. 
C)  a negative income tax. 
D)  an extremely unequal distribution of income.

Question 18

The official poverty line is defined as:

Accepted Answer

A)  one-half the average family income. 
B)  one-third the average family income. 
C)  three times the cost of a minimal food requirement. 
D)  two times the cost of a minimal food requirement. 
A)  one-half the average family income. 
B)  one-third the average family income. 
C)  three times the cost of a minimal food requirement. 
D)  two times the cost of a minimal food requirement.

Question 19

Exhibit 12-2 Lorenz curve  
-As shown in Exhibit 12-2, the perfect equality line is drawn between points:

Accepted Answer

A)  A and B. 
B)  B and D. 
C)  A and C along the straight line. 
D)  A and C along the curve. 
A)  A and B. 
B)  B and D. 
C)  A and C along the straight line. 
D)  A and C along the curve.

Question 20

Under a negative income tax program,

Accepted Answer

A)  the government guarantees a minimum level of family income. 
B)  a family must pay income taxes on its welfare check. 
C)  a family receives a stated amount of money from the government plus its members can keep all income earned through work. 
D)  the government reduces the welfare payment by any income earned through work. 
E)  a family's income is lower if its members work. 
A)  the government guarantees a minimum level of family income. 
B)  a family must pay income taxes on its welfare check. 
C)  a family receives a stated amount of money from the government plus its members can keep all income earned through work. 
D)  the government reduces the welfare payment by any income earned through work. 
E)  a family's income is lower if its members work.

Of the following demographic groups, which has the lowest poverty rate in the U.S.?

The level of money income below which a family is considered poor is called the:

SNAP (food stamps) and Medicaid are examples of:

Which of the following government programs provides recipients with unrestricted cash payments?

Under a negative income tax system, people can make payments to or receive them from the IRS.

Make a case for income inequality.

In an economy where the poorest quintile of the population receives 5 percent of the income, the Lorenz curve:

Exhibit 12-3 Lorenz curve for an economy -If this economy's distribution of income becomes more equal, then the Lorenz curve shown in Exhibit 12-3 will:

Critics of an equal distribution of income argue that the effect would be to reduce the incentive to be productive.

If there is employment discrimination against minorities, this will cause the:

Exhibit 12-4 Lorenz curve -As shown in Exhibit 12-4, 20 percent of families earned a cumulative share of about ____ percent of income.

Since 1929, the distribution of income in the United States has become:

The government defines poverty as an income level less than three times the cost of a minimal diet.

Describe the comparable worth controversy?

In a Lorenz curve diagram, the 45° line represents:

The official poverty line is defined as:

Exhibit 12-2 Lorenz curve -As shown in Exhibit 12-2, the perfect equality line is drawn between points:

Under a negative income tax program,

Introducing the Economic Way of Thinking

Production Possibilities, Opportunity Cost, and Economic Growth

Market Demand and Supply

Markets in Action

Price Elasticity of Demand and Supply

Consumer Choice Theory

Production Costs

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Labor Markets

Antitrust and Regulation

Environmental Economics

International Trade and Finance

Economies in Transition

Growth and the

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Exam 12: Income Distribution, Poverty, and Discrimination

Of the following demographic groups, which has the lowest poverty rate in the U.S.?

The level of money income below which a family is considered poor is called the:

SNAP (food stamps) and Medicaid are examples of:

Which of the following government programs provides recipients with unrestricted cash payments?

Under a negative income tax system, people can make payments to or receive them from the IRS.

Make a case for income inequality.

In an economy where the poorest quintile of the population receives 5 percent of the income, the Lorenz curve:

Exhibit 12-3 Lorenz curve for an economy -If this economy's distribution of income becomes more equal, then the Lorenz curve shown in Exhibit 12-3 will:

Critics of an equal distribution of income argue that the effect would be to reduce the incentive to be productive.

If there is employment discrimination against minorities, this will cause the:

Exhibit 12-4 Lorenz curve -As shown in Exhibit 12-4, 20 percent of families earned a cumulative share of about ____ percent of income.

Since 1929, the distribution of income in the United States has become:

The government defines poverty as an income level less than three times the cost of a minimal diet.

Describe the comparable worth controversy?

In a Lorenz curve diagram, the 45° line represents:

The official poverty line is defined as:

Exhibit 12-2 Lorenz curve -As shown in Exhibit 12-2, the perfect equality line is drawn between points:

Under a negative income tax program,

Introducing the Economic Way of Thinking

Production Possibilities, Opportunity Cost, and Economic Growth

Market Demand and Supply

Markets in Action

Price Elasticity of Demand and Supply

Consumer Choice Theory

Production Costs

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Labor Markets

Antitrust and Regulation

Environmental Economics

International Trade and Finance

Economies in Transition

Growth and the

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