Question 1

Which of the following is not a policy to combat poverty?

Accepted Answer

A) TANF 
B) Supplemental Nutrition Assistance Program 
C) Earned income tax credit 
D) Mortgage interest deductions 
A) TANF 
B) Supplemental Nutrition Assistance Program 
C) Earned income tax credit 
D) Mortgage interest deductions

Question 2

The relative concept of poverty is based on how far behind average income a particular family gets.

Accepted Answer

A) True 
 B)False

Question 3

In 2017, about what percentage of total income was earned by the richest fifth of all U.S. households?

Accepted Answer

A) 30 percent 
B) 50 percent 
C) 70 percent 
D) 90 percent 
A) 30 percent 
B) 50 percent 
C) 70 percent 
D) 90 percent

Question 4

A negative income tax does not

Accepted Answer

A) increase work incentives for those who receive cash payments. 
B) increase work incentives for those who do not receive cash payments. 
C) affect incentives for the poor but affects incentives for low earners who are not poor. 
D) affect incentives, which is why it is efficient. 
A) increase work incentives for those who receive cash payments. 
B) increase work incentives for those who do not receive cash payments. 
C) affect incentives for the poor but affects incentives for low earners who are not poor. 
D) affect incentives, which is why it is efficient.

Question 5

What does a market do poorly?

Accepted Answer

A) Incentivize individuals to efficiently use society's resources 
B) Price labor based actually on marginal productivity 
C) Promote equal income distribution 
D) Allocate resources to their highest value uses 
A) Incentivize individuals to efficiently use society's resources 
B) Price labor based actually on marginal productivity 
C) Promote equal income distribution 
D) Allocate resources to their highest value uses

Question 6

Redistribution programs that reduce poverty and income inequality

Accepted Answer

A) always increase GDP. 
B) always decrease GDP. 
C) usually increase GDP. 
D) usually decrease GDP. 
A) always increase GDP. 
B) always decrease GDP. 
C) usually increase GDP. 
D) usually decrease GDP.

Question 7

If you fall short of a certain minimum standard of living, you are poor; once you pass this standard, you are no longer poor. This refers to the ____ definition of poverty.

Accepted Answer

A) average 
B) absolute 
C) relative 
D) threshold 
A) average 
B) absolute 
C) relative 
D) threshold

Question 8

An example of an in-kind benefit is

Accepted Answer

A) a welfare payment. 
B) capital gains. 
C) a charitable contribution of money. 
D) public housing. 
A) a welfare payment. 
B) capital gains. 
C) a charitable contribution of money. 
D) public housing.

Question 9

Which of the following is not true of employers who discriminate in a competitive market?

Accepted Answer

A) The employer will likely have to pay higher wages. 
B) The employer will likely be at a competitive disadvantage. 
C) The employer will likely have higher productivity. 
D) The employer will likely have higher costs than non-discriminating firms. 
A) The employer will likely have to pay higher wages. 
B) The employer will likely be at a competitive disadvantage. 
C) The employer will likely have higher productivity. 
D) The employer will likely have higher costs than non-discriminating firms.

Question 10

How is the dividing line between poverty and nonpoverty measured? Does this method overstate the degree of poverty?

Accepted Answer

Originally, the poverty line was establi

Question 11

Is education the swiftest method to eliminate poverty. Explain.

Accepted Answer

Evidence points clearly to the conclusio

Question 12

Is wage discrimination more likely in competitive or monopolistic markets?

Accepted Answer

Competitive firms that discriminate may

Question 13

Affirmative action laws require employers to search for qualified minority applicants but not to necessarily give them jobs.

Accepted Answer

A) True 
 B)False

Question 14

The public assistance program that economists believe can promote economic equality at the least cost in economic efficiency is

Accepted Answer

A) Aid to Families with Dependent Children (AFD
C) . 
B) a negative income tax (NIT). 
C) food stamps. 
D) Medicaid. 
A) Aid to Families with Dependent Children (AFD
C) . 
B) a negative income tax (NIT). 
C) food stamps. 
D) Medicaid.

Question 15

Which of the following countries has the most equal income distribution?

Accepted Answer

A) Sweden 
B) Japan 
C) United States 
D) The Netherlands 
A) Sweden 
B) Japan 
C) United States 
D) The Netherlands

Question 16

The relative concept of poverty is based on income relative to the

Accepted Answer

A) poverty line. 
B) average income. 
C) lowest 10 percent of incomes. 
D) highest 10 percent of incomes. 
A) poverty line. 
B) average income. 
C) lowest 10 percent of incomes. 
D) highest 10 percent of incomes.

Question 17

The concept of poverty is culturally determined, and hence people are defined as "poor" in relation to others.

Accepted Answer

A) True 
 B)False

Question 18

The marginal productivity principle does not

Accepted Answer

A) assign higher prices to scarcer resources. 
B) create incentives for firms to discriminate.. 
C) guide firms to use society's resources efficiently. 
D) distribute incomes unequally among society. 
A) assign higher prices to scarcer resources. 
B) create incentives for firms to discriminate.. 
C) guide firms to use society's resources efficiently. 
D) distribute incomes unequally among society.

Question 19

The factor accounting for most of the earnings difference between equally educated and experienced men and women is that women

Accepted Answer

A) receive less pay for equal work. 
B) are segregated into low-paying occupations. 
C) receive comparable pay only when they do work of comparable value to the employer. 
D) are prohibited by law from doing certain kinds of work. 
A) receive less pay for equal work. 
B) are segregated into low-paying occupations. 
C) receive comparable pay only when they do work of comparable value to the employer. 
D) are prohibited by law from doing certain kinds of work.

Question 20

Actual experiments show that negative income taxes destroy work incentives.

Accepted Answer

A) True 
 B)False

Exam 20: Poverty, Inequality, and Discrimination

Which of the following is not a policy to combat poverty?

The relative concept of poverty is based on how far behind average income a particular family gets.

In 2017, about what percentage of total income was earned by the richest fifth of all U.S. households?

A negative income tax does not

What does a market do poorly?

Redistribution programs that reduce poverty and income inequality

If you fall short of a certain minimum standard of living, you are poor; once you pass this standard, you are no longer poor. This refers to the ____ definition of poverty.

An example of an in-kind benefit is

Which of the following is not true of employers who discriminate in a competitive market?

How is the dividing line between poverty and nonpoverty measured? Does this method overstate the degree of poverty?

Is education the swiftest method to eliminate poverty. Explain.

Is wage discrimination more likely in competitive or monopolistic markets?

Affirmative action laws require employers to search for qualified minority applicants but not to necessarily give them jobs.

The public assistance program that economists believe can promote economic equality at the least cost in economic efficiency is

Which of the following countries has the most equal income distribution?

The relative concept of poverty is based on income relative to the

The concept of poverty is culturally determined, and hence people are defined as "poor" in relation to others.

The marginal productivity principle does not

The factor accounting for most of the earnings difference between equally educated and experienced men and women is that women

Actual experiments show that negative income taxes destroy work incentives.

What Is Economics

The Economy: Myth and Reality

The Fundamental Economic Problem: Scarcity and Choice

Supply and Demand: an Initial Look

Consumer Choice: Individual and Market Demand

Demand and Elasticity

Production, Inputs, and Cost: Building Blocks for Supply Analysis

Output, Price, and Profit: the Importance of Marginal Analysis

The Financial Markets and the Economy: the Tail That Wags the Dog

The Firm and the Industry Under Perfect Competition

The Case for Free Markets: the Price System

Monopoly

Between Competition and Monopoly

Limiting Market Power: Antitrust and Regulation

The Shortcomings of Free Markets

Externalities, Externaliteis, the Environment, and Natural Resources

Taxation and Resource Allocation

Pricing the Factors of Production

Labor and Entrepreneurship: the Human Inputs

International Trade and Comparative Advantage

Contemporary Issues in the Us Economy

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