Exam 20: Income Inequality and Poverty

The political philosophy that views the redistribution of income as a form of social insurance is

Fewer than three percent of families are poor for eight or more years.

The maximin criterion is the idea that the government should aim to maximize the well-being of the worst-off person in society.

Which of the following does not explain why data on income distribution and the poverty rate give an incomplete picture of inequality?

Outline the possible work disincentives created by anti-poverty programs. Is there a way to solve this problem without causing other forms of inefficiency to arise? Explain your answer.

If the U.S. government determines that the cost of feeding an urban family of four is $7,500 per year, then the official poverty line for a family of that type is

Liberalism suggests that public policies should aim to

-Refer to Table 20-13. If the poverty rate in Imagination is 10%, what is the poverty line?

Table 20-7 -Refer to Table 20-7. Which of the following is the best overall conclusion to draw from the data?

A U.S. family earning $80,000 would be in the top 20 percent of income distribution in 2011.

In the United States from 1935 to 2011 the share of total income earned by the bottom fifth of income earners rose and then fell.

Economic mobility in the United States is

Figure 20-3 -Refer to Figure 20-3. In 2011, the percent of elderly aged 65 and over in poverty is

Compare and contrast the "life cycle" hypothesis and the "permanent income" hypothesis. What are their respective implications for inequality in the income distribution?

Figure 20-3 -Refer to Figure 20-3. Which of the following is consistent with the data reported in the figure?

In the US, is it more likely that someone will become a millionaire by making money on his/her own or by inheriting a fortune?

The maximin criterion for government policies is associated with

Aniella believes that the demand for unskilled labor is relatively inelastic. Carmella believes that the demand for unskilled labor is relatively elastic. Which believes that a minimum-wage law will result in significant unemployment?

The poverty rate is the percentage of the population whose family income falls below the poverty line..

The Earned Income Tax Credit (EITC) is a tax provision that allows poor working families to receive income tax refunds greater than the taxes they paid during the year. Therefore, the EITC works much like a .