Exam 20: Poverty, Inequality, and Discrimination

With a negative income tax providing a minimum of $20,000 and a tax rate of 25 percent, what amount of supplement would the government pay to a household earning $10,000?

Which of the following is not a source of income inequality?

The highest-income fifth of the U.S. population earns more than 50 percent of all income.

The Earned Income Tax Credit (EITC)is a more efficient means to redistribute income to people below the poverty line than direct cash transfers.

TANF sets a lifetime cap for benefits at 10 years.

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

The official dividing line between the poor and nonpoor is called the

Which of the following best describes compensating wage differentials ?

Many economists believe that

In 2017, the median income for a household of four was about

Under a relative concept of poverty, poverty

One of the more powerful forces leading to an end in economic discrimination is

If two individuals have identical schooling, their incomes will be equal.

What are the strengths and weaknesses of the negative income tax (NIT)as an alternative to traditional welfare programs?

A free market system tends to

Table 21-1 -Consider the economy described by the income distribution in Table 21-1. From this table, we can conclude that the

The simplest economic definition of discrimination is

Employers near military bases are aware that wives generally accompany their servicemen husbands when they are transferred. When presented with nonservice-wife applicants and wives of servicemen, they hire the nonservice-wife applicants. This is an example of

If a female supervisor is discriminated against by one of her workers who refuses to cooperate, she may earn lower wages.

The United States has less income inequality than most other developed countries.