Question 1

A negative income tax system would provide all households, including the poor, with:

Accepted Answer

A)  cash payments. 
B)  incentives to earn income. 
C)  higher income levels. 
D)  medical assistance. 
E)  lower tax bills than it does . 
A)  cash payments. 
B)  incentives to earn income. 
C)  higher income levels. 
D)  medical assistance. 
E)  lower tax bills than it does .

Question 2

Exhibit 12-2 Lorenz curve  
-As shown in Exhibit 12-2, 80 percent of families earned a cumulative share of about ____ of income.

Accepted Answer

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

Question 3

Typically, a country's population is divided into how many income groups to find a Lorenz Curve?

Accepted Answer

A)  1 or 2. 
B)  5 or 10. 
C)  10 or 20. 
D)  25 or 50. 
E)  100. 
A)  1 or 2. 
B)  5 or 10. 
C)  10 or 20. 
D)  25 or 50. 
E)  100.

Question 4

The Social Security Act was passed:

Accepted Answer

A)  in 1955. 
B)  just after World War II. 
C)  in 1935. 
D)  in 1964. 
A)  in 1955. 
B)  just after World War II. 
C)  in 1935. 
D)  in 1964.

Question 5

In-kind assistance programs are based on the direct transferring of goods and services to the poor.

Accepted Answer

A) True 
 B)False

Question 6

Discrimination raises the average wage of members of one group of workers in spite of laws that require equal pay for all workers.

Accepted Answer

A) True 
 B)False

Question 7

The incentive to work is an ingredient of the negative income tax because:

Accepted Answer

A)  if families do work, they will be eliminated from the program. 
B)  if families don't work, they will be eliminated from the program. 
C)  the more income earned in the workplace, the higher the family's after-tax income. 
D)  the more income earned in the workplace, the higher the payment from the government. 
E)  the amount earned in the workplace is not subject to income taxes. 
A)  if families do work, they will be eliminated from the program. 
B)  if families don't work, they will be eliminated from the program. 
C)  the more income earned in the workplace, the higher the family's after-tax income. 
D)  the more income earned in the workplace, the higher the payment from the government. 
E)  the amount earned in the workplace is not subject to income taxes.

Question 8

The official U.S. poverty line for a family is calculated by taking 3 times the annual cost of:

Accepted Answer

A)  public housing. 
B)  basic medical care. 
C)  utilities and transportation. 
D)  a minimal diet. 
A)  public housing. 
B)  basic medical care. 
C)  utilities and transportation. 
D)  a minimal diet.

Question 9

In the United States since 1970, the poverty rate for blacks has been about:

Accepted Answer

A)  1−2 percentage points higher than the poverty rate for whites. 
B)  twice the poverty rate for whites. 
C)  three times the poverty rate for whites. 
D)  five times the poverty rate for whites. 
A)  1−2 percentage points higher than the poverty rate for whites. 
B)  twice the poverty rate for whites. 
C)  three times the poverty rate for whites. 
D)  five times the poverty rate for whites.

Question 10

Almost all of the FICA tax deductions from a worker's paycheck is put into an account and saved for that worker's retirement years.

Accepted Answer

A) True 
 B)False

A negative income tax system would provide all households, including the poor, with:

Exhibit 12-2 Lorenz curve -As shown in Exhibit 12-2, 80 percent of families earned a cumulative share of about ____ of income.

Typically, a country's population is divided into how many income groups to find a Lorenz Curve?

The Social Security Act was passed:

In-kind assistance programs are based on the direct transferring of goods and services to the poor.

Discrimination raises the average wage of members of one group of workers in spite of laws that require equal pay for all workers.

The incentive to work is an ingredient of the negative income tax because:

The official U.S. poverty line for a family is calculated by taking 3 times the annual cost of:

In the United States since 1970, the poverty rate for blacks has been about:

Almost all of the FICA tax deductions from a worker's paycheck is put into an account and saved for that worker's retirement years.

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

Filters

Exam 12: Income Distribution, Poverty, and Discrimination

A negative income tax system would provide all households, including the poor, with:

Exhibit 12-2 Lorenz curve -As shown in Exhibit 12-2, 80 percent of families earned a cumulative share of about ____ of income.

Typically, a country's population is divided into how many income groups to find a Lorenz Curve?

The Social Security Act was passed:

In-kind assistance programs are based on the direct transferring of goods and services to the poor.

Discrimination raises the average wage of members of one group of workers in spite of laws that require equal pay for all workers.

The incentive to work is an ingredient of the negative income tax because:

The official U.S. poverty line for a family is calculated by taking 3 times the annual cost of:

In the United States since 1970, the poverty rate for blacks has been about:

Almost all of the FICA tax deductions from a worker's paycheck is put into an account and saved for that worker's retirement years.

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

Filters