Exam 15: Income Inequality and Poverty

The Samaritan's dilemma describes the problem that exists when transfer programs, designed to help the poor, encourage choices that can promote or perpetuate

In a market economy, individuals have a strong incentive to develop their skills and provide others with resources, goods, and services that they value because these activities generally

Over the past two decades, the earnings gap between college graduates and those with only a high school education has

The poverty threshold income level is

Analysis of the economic status of poor people reveals that

Programs that limit the eligibility of transfer recipients to those with low income are called

Assume that Peter is a single parent who is in poverty. He receives food stamps and Medicaid. For every $100 that he earns, Peter loses $35 of his food stamp benefits and $20 in his Medicaid benefits. Also, Peter's income is taxed at a rate of 10 percent. Then, Peter's effective marginal tax rate is

Because the United States has a progressive tax system, the distribution of income after taking into account the effects of taxes and transfers is

Which of the following contributed most to the large increases in poverty since 1960?

Which of the following is true?

Data indicate that the large increase in government spending on income transfers that started with the War on Poverty during the latter half of the 1960s has resulted in

In a market economy, differences in incomes will

Figure 15-1 As shown in Figure 15-1, the perfect equality line is drawn between points

Compared to low-income families, high-income families tend to

If the marginal productivity of labor was the sole determinant of household income in the U.S., then

Why does the government provide benefits in-kind? Why don't we just give money to low-income people?

Which of the following is accurate regarding income statistics?

"Annual income during the prime working years may overstate the economic well-being of most households over their lifetime." This statement is

Figure 15-1 As shown in Figure 15-1, 60 percent of families earned a cumulative share of about ____ of income.

(I) In 2009, a family of four making $22,050 would be considered living in poverty. (II) The poverty threshold level of income is adjusted for family size and for inflation (price level changes) through time.