Question 1

A system in which anyone collecting antipoverty program benefits must accept a government-provided job is called .

Accepted Answer

The answer of A system in which anyone collecting antipoverty...

Question 2

Explain what is meant by "in-kind transfer" programs. Briefly outline the advantages and disadvantages of an in-kind transfer program.

Accepted Answer

An in-kind transfer program distributes

Question 3

In-kind transfers are transfers to the poor

Accepted Answer

A) in the form of goods and services rather than cash. 
B) in the form of goods, services, and cash. 
C) from private charitable organizations only. 
D) from the federal government only. 
A) in the form of goods and services rather than cash. 
B) in the form of goods, services, and cash. 
C) from private charitable organizations only. 
D) from the federal government only.

Question 4

People can borrow and lend money to smooth out short term variations in income known as what kind of changes?

Accepted Answer

The answer of People can borrow and lend money to...

Question 5

Poverty is found to be correlated with

Accepted Answer

A) age and race but not family composition. 
B) race only. 
C) race and family composition but not age. 
D) age, race, and family composition. 
A) age and race but not family composition. 
B) race only. 
C) race and family composition but not age. 
D) age, race, and family composition.

Question 6

Which political philosophy concludes that equality of opportunities is more important than equality of outcomes?

Accepted Answer

The answer of Which political philosophy concludes that equality of...

Question 7

The study by economists Cox and Alm found

Accepted Answer

A) the gap between rich and poor shrinks greatly if using after-tax income compared with pre-tax income. 
B) the gap between rich and poor shrinks slightly if using after-tax income compared with pre-tax income. 
C) the gap between rich and poor widens slightly if using after-tax income compared with pre-tax income. 
D) the gap between rich and poor widens greatly if using after-tax income compared with pre-tax income. 
A) the gap between rich and poor shrinks greatly if using after-tax income compared with pre-tax income. 
B) the gap between rich and poor shrinks slightly if using after-tax income compared with pre-tax income. 
C) the gap between rich and poor widens slightly if using after-tax income compared with pre-tax income. 
D) the gap between rich and poor widens greatly if using after-tax income compared with pre-tax income.

Question 8

Table 20-13
The following table shows the distribution of income in Widgetapolis.   ​
-Refer to Table 20-13. If the poverty rate is 19%, where is the poverty line in Widgetapolis?

Accepted Answer

A) under $39,000 
B) between $39,000 and $59,999 
C) between $60,000 and $81,999 
D) between $82,000 and $109,999 
A) under $39,000 
B) between $39,000 and $59,999 
C) between $60,000 and $81,999 
D) between $82,000 and $109,999

Question 9

The income level below which families are said to be poor is known as the

Accepted Answer

A) income maintenance threshold. 
B) poverty line. 
C) bottom quintile of the income distribution. 
D) minimum wage. 
A) income maintenance threshold. 
B) poverty line. 
C) bottom quintile of the income distribution. 
D) minimum wage.

Question 10

The 2011 U.S. distribution of income shows that the top 20 percent of families have approximately what share of income?

Accepted Answer

A) 20 percent 
B) 35 percent 
C) 50 percent 
D) 80 percent 
A) 20 percent 
B) 35 percent 
C) 50 percent 
D) 80 percent

Question 11

In 2011, the top 20% of US families had more than times as much income as the bottom 20%.

Accepted Answer

The answer of In 2011, the top 20% of US...

Question 12

In a typical 10-year period, about one in four families falls below the poverty line in at least one year. What percentage of families are poor for eight or more years?

Accepted Answer

The answer of In a typical 10-year period, about one...

Question 13

Table 20-3
The Distribution of Income in Edgerton  
-Refer to Table 20-3. According to the table, what percent of families in Edgerton have income levels below $44,000?

Accepted Answer

A) 80 percent 
B) 60 percent 
C) 50 percent 
D) 40 percent 
A) 80 percent 
B) 60 percent 
C) 50 percent 
D) 40 percent

Question 14

The poverty line in the country of Inequalia is $10,000. The distribution of income for Inequalia is as follows:   The poverty rate in Inequalia is

Accepted Answer

A) 11.1 percent. 
B) 16.7 percent. 
C) 27.8 percent. 
D) 55.5 percent. 
A) 11.1 percent. 
B) 16.7 percent. 
C) 27.8 percent. 
D) 55.5 percent.

Question 15

Table 20-15
Income Inequality in 2010 in the United States by Race
The values in the table reflect the percentages of pre-tax-and-transfer income.   Source: US Census Bureau
-Refer to Table 20-15. Which race shows the least equal distribution of income?

Accepted Answer

The answer of Table 20-15
Income Inequality in 2010 in the...

Question 16

Which of the following statements is correct?

Accepted Answer

A) Followers of the liberalism political philosophy believe that society should maximize the total of individual utilities. 
B) The poverty line is adjusted for regional differences in the costs of raising children. 
C) One advantage to the Earned Income Tax Credit (EIT
C)  is that it benefits the working poor. 
D) Libertarians pursue policies to redistribute income from the rich to the poor. 
A) Followers of the liberalism political philosophy believe that society should maximize the total of individual utilities. 
B) The poverty line is adjusted for regional differences in the costs of raising children. 
C) One advantage to the Earned Income Tax Credit (EIT
C)  is that it benefits the working poor. 
D) Libertarians pursue policies to redistribute income from the rich to the poor.

Question 17

A common criticism of welfare programs is that they

Accepted Answer

A) create self-reliant individuals. 
B) encourage strong family values. 
C) encourage illegitimate births. 
D) have increasing benefits over time, in real terms. 
A) create self-reliant individuals. 
B) encourage strong family values. 
C) encourage illegitimate births. 
D) have increasing benefits over time, in real terms.

Question 18

Scenario 20-8
Suppose the government implemented a negative income tax and used the following formula to compute a family's tax liability:
Taxes owed = (1/4 of income) - $14,000
​
​
-Refer to Scenario 20-8. The government does not have to pay a subsidy to any family through this negative income tax if the family with the lowest income earns $50,000.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following programs would be opposed by philosopher John Rawls?

Accepted Answer

A) a negative income tax 
B) the Supplemental Security Income (SSI) program 
C) a tax plan creating a perfectly egalitarian income distribution 
D) Rawls would oppose all of the programs. 
A) a negative income tax 
B) the Supplemental Security Income (SSI) program 
C) a tax plan creating a perfectly egalitarian income distribution 
D) Rawls would oppose all of the programs.

Question 20

"The government should punish crimes and enforce voluntary agreements but not redistribute income." This statement is most closely associated with which political philosophy?

Accepted Answer

A) liberalism 
B) utilitarianism 
C) libertarianism 
D) welfarism 
A) liberalism 
B) utilitarianism 
C) libertarianism 
D) welfarism

Exam 20: Income Inequality and Poverty

A system in which anyone collecting antipoverty program benefits must accept a government-provided job is called .

Explain what is meant by "in-kind transfer" programs. Briefly outline the advantages and disadvantages of an in-kind transfer program.

In-kind transfers are transfers to the poor

People can borrow and lend money to smooth out short term variations in income known as what kind of changes?

Poverty is found to be correlated with

Which political philosophy concludes that equality of opportunities is more important than equality of outcomes?

The study by economists Cox and Alm found

Table 20-13 The following table shows the distribution of income in Widgetapolis. ​ -Refer to Table 20-13. If the poverty rate is 19%, where is the poverty line in Widgetapolis?

The income level below which families are said to be poor is known as the

The 2011 U.S. distribution of income shows that the top 20 percent of families have approximately what share of income?

In 2011, the top 20% of US families had more than times as much income as the bottom 20%.

In a typical 10-year period, about one in four families falls below the poverty line in at least one year. What percentage of families are poor for eight or more years?

Table 20-3 The Distribution of Income in Edgerton -Refer to Table 20-3. According to the table, what percent of families in Edgerton have income levels below $44,000?

The poverty line in the country of Inequalia is $10,000. The distribution of income for Inequalia is as follows: The poverty rate in Inequalia is

Table 20-15 Income Inequality in 2010 in the United States by Race The values in the table reflect the percentages of pre-tax-and-transfer income. Source: US Census Bureau -Refer to Table 20-15. Which race shows the least equal distribution of income?

Which of the following statements is correct?

A common criticism of welfare programs is that they

Which of the following programs would be opposed by philosopher John Rawls?

"The government should punish crimes and enforce voluntary agreements but not redistribute income." This statement is most closely associated with which political philosophy?

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Elasticity and Its Application

Supply, Demand, and Government Policies

Consumers, Producers, and the Efficiency of Markets

Applications: the Costs of Taxation

Application: International Trade

Externalities

Public Goods and Common Resources

The Design of the Tax System

The Costs of Production

Firms in Competitive Markets

Monopoly

Monopolistic Competition

Oligopoly

The Markets for the Factors of Production

Earnings and Discrimination

The Theory of Consumer Choice

Frontiers in Microeconomics

Measuring a Nation S Income

Measuring the Cost of Living

Production and Growth

Saving, Investment, and the Financial System

Tools of Finance

Unemployment and Its Natural Rate

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short-Run Tradeoff Between Inflation and Unemployment

Six Debates Over Macroeconomic Policy

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Table 20-13 The following table shows the distribution of income in Widgetapolis. -Refer to Table 20-13. If the poverty rate is 19%, where is the poverty line in Widgetapolis?