Question 1

One of the provisions of the Temporary Assistance for Needy Families (TANF) program was to

Accepted Answer

A)  guarantee cash assistance for poor families. 
B)  set a 5-year lifelong limit on welfare benefits. 
C)  get the federal government to pay more of the cost of welfare. 
D)  make welfare benefits more equitable among those receiving them. 
A)  guarantee cash assistance for poor families. 
B)  set a 5-year lifelong limit on welfare benefits. 
C)  get the federal government to pay more of the cost of welfare. 
D)  make welfare benefits more equitable among those receiving them.

Question 2

The pizza analogy of income distribution would be most closely associated with which one of the following questions?

Accepted Answer

A)  If resources are used to make pizza, what other goods and services must be given up to do this? 
B)  If cutting a pizza in more equal slices shrinks the pizza, how much shrinkage will society tolerate? 
C)  If pizza workers were paid more money, would they become more productive workers for society? 
D)  If pizza sales increase, would pizza companies redistribute the profits to their employees? 
A)  If resources are used to make pizza, what other goods and services must be given up to do this? 
B)  If cutting a pizza in more equal slices shrinks the pizza, how much shrinkage will society tolerate? 
C)  If pizza workers were paid more money, would they become more productive workers for society? 
D)  If pizza sales increase, would pizza companies redistribute the profits to their employees?

Question 3

(Last Word) In 2010, the wealthiest 1 percent of U.S. households held about percent of U.S. household wealth.

Accepted Answer

A)  35 
B)  77 
C)  23 
D)  32 
A)  35 
B)  77 
C)  23 
D)  32

Question 4

The unemployment compensation social insurance program is a

Accepted Answer

A)  purely federal government program. 
B)  purely state-level government program. 
C)  federal-state program. 
D)  local government program. 
A)  purely federal government program. 
B)  purely state-level government program. 
C)  federal-state program. 
D)  local government program.

Question 5

People's incomes are relatively low when they are young, reach a peak in middle age, and then decline. This fact helps explain

Accepted Answer

A)  the wide variations of Gini ratios among nations. 
B)  the equality-efficiency trade-off. 
C)  why the lifetime distribution of income is more equal than the distribution in any given year. 
D)  why the lifetime distribution of income is less equal than the distribution in any given year. 
A)  the wide variations of Gini ratios among nations. 
B)  the equality-efficiency trade-off. 
C)  why the lifetime distribution of income is more equal than the distribution in any given year. 
D)  why the lifetime distribution of income is less equal than the distribution in any given year.

Question 6

The eligibility basis for the Supplemental Nutrition Assistance Program (or SNAP, formerly called the food-stamp program) is

Accepted Answer

A)  age. 
B)  illness. 
C)  income. 
D)  disability. 
A)  age. 
B)  illness. 
C)  income. 
D)  disability.

Question 7

By December 2009, the recession that began in December 2007

Accepted Answer

A)  had shifted 2 million people out of TANF and into the unemployment compensation system. 
B)  doubled the number of people on welfare. 
C)  raised the number of TANF recipients from 3.9 million to about 4.4 million. 
D)  raised the number of TANF recipients to about 5 percent of the population. 
A)  had shifted 2 million people out of TANF and into the unemployment compensation system. 
B)  doubled the number of people on welfare. 
C)  raised the number of TANF recipients from 3.9 million to about 4.4 million. 
D)  raised the number of TANF recipients to about 5 percent of the population.

Question 8

Which one of the following would increase income inequality as measured by official census data and the quintile distribution?

Accepted Answer

A)  a doubling of Social Security retirement benefits 
B)  elimination of the SNAP program 
C)  elimination of the TANF program 
D)  reduced divorce rates 
A)  a doubling of Social Security retirement benefits 
B)  elimination of the SNAP program 
C)  elimination of the TANF program 
D)  reduced divorce rates

Question 9

African-American worker Jackson earns $30,000 per year; white worker Johnson earns $40,000 per year. On the basis of this information, we can conclude that

Accepted Answer

A)  it is not clear whether discrimination is present in this situation. 
B)  there are no discriminatory forces at work in the labor market. 
C)  Jackson is being discriminated against, but the dollar amount is unclear. 
D)  Jackson is being discriminated against in the amount of $10,000 per year. 
A)  it is not clear whether discrimination is present in this situation. 
B)  there are no discriminatory forces at work in the labor market. 
C)  Jackson is being discriminated against, but the dollar amount is unclear. 
D)  Jackson is being discriminated against in the amount of $10,000 per year.

Question 10

(Consider This) Sandy currently earns wages of $20,000 per year. In her state, that qualifies her for $5,000 worth of housing credits, but those credits are withdrawn for anyone earning $22,000 per year or more. If Sandy were to find a part-time job that earned her $3,000 per year,

Accepted Answer

A)  Sandy would be worse off by $1,000 if she took the job. 
B)  Sandy would be better off by $3,000 if she took the job. 
C)  Sandy is equally well off financially whether she takes the job or not. 
D)  Sandy would be worse off by $2,000 if she took the job. 
A)  Sandy would be worse off by $1,000 if she took the job. 
B)  Sandy would be better off by $3,000 if she took the job. 
C)  Sandy is equally well off financially whether she takes the job or not. 
D)  Sandy would be worse off by $2,000 if she took the job.

Question 11

The crowding model of discrimination suggests that

Accepted Answer

A)  women and selected minorities are systematically excluded from high-paying occupations and crowded into low-paying occupations, decreasing their wages and reducing domestic output. 
B)  employers having high discrimination coefficients will be crowded out by nondiscriminating employers in the long run. 
C)  firms will base hiring decisions on group averages, rather than on individual characteristics and productivity. 
D)  occupational segregation is largely the result of freely made rational choices of women and minorities. 
A)  women and selected minorities are systematically excluded from high-paying occupations and crowded into low-paying occupations, decreasing their wages and reducing domestic output. 
B)  employers having high discrimination coefficients will be crowded out by nondiscriminating employers in the long run. 
C)  firms will base hiring decisions on group averages, rather than on individual characteristics and productivity. 
D)  occupational segregation is largely the result of freely made rational choices of women and minorities.

Question 12

Perfect income equality would yield a Gini ratio of

Accepted Answer

A)  2. 
B)  1. 
C)  0. 
D)  0.5. 
A)  2. 
B)  1. 
C)  0. 
D)  0.5.

Question 13

The judging of an individual on the basis of the average characteristics of the group to which the individual belongs rather than the individual's characteristics is

Accepted Answer

A)  statistical discrimination. 
B)  reverse discrimination. 
C)  human capital discrimination. 
D)  wage discrimination. 
A)  statistical discrimination. 
B)  reverse discrimination. 
C)  human capital discrimination. 
D)  wage discrimination.

Question 14

All social insurance programs are welfare or public charity programs.

Accepted Answer

A) True 
 B)False

Question 15

Statistical discrimination is also known as occupational discrimination.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is not one of the causes of the unequal distribution of income in the United States?

Accepted Answer

A)  ability differences 
B)  education and training 
C)  job preferences and job risks 
D)  income taxes and transfers 
A)  ability differences 
B)  education and training 
C)  job preferences and job risks 
D)  income taxes and transfers

Question 17

A cause of the unequal distribution of income in the United States is

Accepted Answer

A)  differences in work preferences and risks. 
B)  differences in noncash transfers. 
C)  high expenditures for social insurance. 
D)  a low benefit-reduction rate for income. 
A)  differences in work preferences and risks. 
B)  differences in noncash transfers. 
C)  high expenditures for social insurance. 
D)  a low benefit-reduction rate for income.

Question 18

One of the major causes of income inequality is differences in

Accepted Answer

A)  unemployment benefits. 
B)  transportation. 
C)  education. 
D)  housing. 
A)  unemployment benefits. 
B)  transportation. 
C)  education. 
D)  housing.

Question 19

The primary purpose of Social Security is to

Accepted Answer

A)  subsidize families in need. 
B)  offset the progressiveness of the personal income tax. 
C)  provide income for workers who are temporarily unemployed. 
D)  provide income for retired and disabled workers. 
A)  subsidize families in need. 
B)  offset the progressiveness of the personal income tax. 
C)  provide income for workers who are temporarily unemployed. 
D)  provide income for retired and disabled workers.

Question 20

Which is a payment or wage subsidy made by the Federal government to offset Social Security taxes for low-income workers?

Accepted Answer

A)  the food-stamp program 
B)  Supplement Security Income 
C)  the earned-income tax credit 
D)  Temporary Assistance to Needy Families 
A)  the food-stamp program 
B)  Supplement Security Income 
C)  the earned-income tax credit 
D)  Temporary Assistance to Needy Families

Exam 23: Income Inequality, Poverty, and Discrimination

One of the provisions of the Temporary Assistance for Needy Families (TANF) program was to

The pizza analogy of income distribution would be most closely associated with which one of the following questions?

(Last Word) In 2010, the wealthiest 1 percent of U.S. households held about percent of U.S. household wealth.

The unemployment compensation social insurance program is a

People's incomes are relatively low when they are young, reach a peak in middle age, and then decline. This fact helps explain

The eligibility basis for the Supplemental Nutrition Assistance Program (or SNAP, formerly called the food-stamp program) is

By December 2009, the recession that began in December 2007

Which one of the following would increase income inequality as measured by official census data and the quintile distribution?

African-American worker Jackson earns $30,000 per year; white worker Johnson earns $40,000 per year. On the basis of this information, we can conclude that

(Consider This) Sandy currently earns wages of $20,000 per year. In her state, that qualifies her for $5,000 worth of housing credits, but those credits are withdrawn for anyone earning $22,000 per year or more. If Sandy were to find a part-time job that earned her $3,000 per year,

The crowding model of discrimination suggests that

Perfect income equality would yield a Gini ratio of

The judging of an individual on the basis of the average characteristics of the group to which the individual belongs rather than the individual's characteristics is

All social insurance programs are welfare or public charity programs.

Statistical discrimination is also known as occupational discrimination.

Which of the following is not one of the causes of the unequal distribution of income in the United States?

A cause of the unequal distribution of income in the United States is

One of the major causes of income inequality is differences in

The primary purpose of Social Security is to

Which is a payment or wage subsidy made by the Federal government to offset Social Security taxes for low-income workers?

Limits, Alternatives, and Choices

The Market System and the Circular Flow

Demand, Supply, and Market Equilibrium

Market Failures: Public Goods and Externalities

Governments Role and Government Failure

Elasticity

Utility Maximization

Behavioral Economics

Businesses and the Costs of Production

Pure Competition in the Short Run

Pure Competition in the Long Run

Pure Monopoly

Monopolistic Competition

Oligopoly and Strategic Behavior

Technology, Rd, and Efficiency

The Demand for Resources

Wage Determination

Rent, Interest, and Profit

Natural Resource and Energy Economics

Public Finance: Expenditures and Taxes

Antitrust Policy and Regulation

Agriculture: Economics and Policy

Health Care

Immigration

International Trade

The Balance of Payments, Exchange Rates, and Trade Deficits

The Economics of Developing Countries

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