Exam 21: Poverty, Inequality, and Discrimination

The "War on Poverty" was declared by President Ronald Reagan in 1982.

With a negative income tax, the larger the difference between the break-even income level and the guaranteed level,

Taken as a whole, antipoverty programs may actually put a poor family in a position in which the family becomes worse off if its earnings rise.

Figure 21-1 -In Figure 21-1, a reform in the distribution system that achieves the same distribution with less damage to work incentives is represented by a move from which points?

The economic theory of discrimination suggests that the practice of apartheid in South Africa should have

Programs that reduce the incentive to work make income redistribution inefficient.

The basic problem with the government setting an absolute poverty line is that it is

The lowest-income fifth of the population ordinarily earns about 20 percent of the income in the United States.

Which of the following situations is the most common? Men and women

Define the following terms and explain their importance to the study of economics. a.poverty line b.economic discrimination c.optimal inequality d.negative income tax

Which of the following is a source of inequality in incomes?

Which of the following observations concerning the absolute definition of poverty is true?

Competition reduces some but not all discrimination.Where can one expect competition to reduce discrimination, and where is discrimination likely to go on even if there is competition?

Large income differences will be eradicated if the market mechanism is working well.

Table 21-1 Share of Lowest fifth 6 Second fifth 9 Third fifth 17 Fourth fffth 19 Highest ffth 49 -Consider the economy described by the income distribution in Table 21-1.From this table, we can conclude that the poorest 60 percent of the population earns

A minority candidate may not have the same chances as a white candidate for a job simply based on an employer's misconceptions about minorities.

The two ways to define poverty are which of the following?

In their 1994 book, The Bell Curve, Murray and Herrnstein presented evidence that IQ is an important determinant of economic success.

Discuss the controversy surrounding affirmative action.How does this controversy illustrate the trade-off between equality and efficiency?

The fundamental criticism from the efficiency perspective of AFDC and other antipoverty programs is that