Exam 20: Income Inequality and Poverty

Scenario 20-7 Zooey is a single mother of two young children whose husband died in a tragic car accident. She earns $20,000 per year working as a cashier at a grocery store. The government uses a negative income tax system in which Taxes owed = (1/4 of income) - $15,000. -Refer to Scenario 20-7. Zooey's friend Alfredo owes $0 in taxes. How much does he earn?

In the United States, long-term poverty affects

Which of the following statements about the minimum wage is correct?

Based on U.S. income data from 2011, the bottom fifth of all families received approximately what percent of all income?

Scenario 20-2 The government is proposing switching from a progressive tax system, in which families pay 15% of the first $40,000 earned, 30% of the next $40,000 earned, and 45% of any income over $80,000 to a tax system in which every family pays 1/4 of its income regardless of how much they earn and all income redistribution is eliminated. That is, the tax revenue generated is used only for infrastructure, public administration, and national defense. -Refer to Scenario 20-2. Which philosopher would be most in favor of the proposed change in tax policy?

Which of the following is an advantage of an in-kind transfer in comparison to a cash payment?

A follower of liberalism would not support a redistribution of income but rather would focus on equalizing opportunities.

Table 20-11 Poverty Thresholds in 2011, by Size of Family and Number of Related Children Under 18 Years [Dollars] Source: U. S. Bureau of the Census, Current Population Survey. -Refer to Table 20-11. What is the poverty line for a 75-year-old individual?

Libertarians believe that in considering economic fairness, one should primarily consider the

Which philosopher claimed that the government should aim to maximize the well-being of the worst-off person in society?

Which of the following statements is not correct?

Over the past 50 years, the U.S. poverty rate was at its lowest level in

In the United States in 2011, the bottom fifth of the income distribution had incomes below $27,218.

Assume that the government proposes a negative income tax that calculates the taxes owed as follows: taxes owed equal 30% of income less $12,000. A family that earns an income of $40,000 will

Based on U.S. income data from 2011, the top fifth of all families received

Table 20-5 Distribution of Income in Umakastan -Refer to Table 20-5. Where would the government of Umakastan have to set the poverty line to have a poverty rate of about 28%?

The percentage of the population whose family income falls below an absolute level is call the

The percentage of families with incomes below the poverty line

The philosopher John Rawls argued that

Ms. Spring currently earns $100,000 a year, while her junior partner, Mr. Fall, earns $55,000 a year. From the perspective of a utilitarian, if both of their incomes are subject to diminishing marginal utility, taking a dollar from Ms. Spring and giving it to Mr. Fall will