Question 1

Which of the following groups has the lowest poverty rate?

Accepted Answer

A)  Married-couple families. 
B)  Whites. 
C)  Foreign-born (not citizens). 
D)  Asians. 
A)  Married-couple families. 
B)  Whites. 
C)  Foreign-born (not citizens). 
D)  Asians.

Question 2

(Consider This)According to The Economist magazine,growing income inequality is less of a concern because:

Accepted Answer

A)  it is increasing at a decreasing rate. 
B)  the poor have increasingly better access to goods and services once only available to the rich. 
C)  poverty rates have fallen below 10 percent. 
D)  government transfers eliminate virtually all consumption inequality. 
A)  it is increasing at a decreasing rate. 
B)  the poor have increasingly better access to goods and services once only available to the rich. 
C)  poverty rates have fallen below 10 percent. 
D)  government transfers eliminate virtually all consumption inequality.

Question 3

Discrimination creates a:

Accepted Answer

A)  redistribution of a larger domestic output. 
B)  larger domestic output but no redistribution. 
C)  smaller domestic output but no redistribution. 
D)  redistribution of a smaller domestic output. 
A)  redistribution of a larger domestic output. 
B)  larger domestic output but no redistribution. 
C)  smaller domestic output but no redistribution. 
D)  redistribution of a smaller domestic output.

Question 4

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 5

Labor market discrimination increases the size of the nation's GDP by promoting specialization on the basis of race.

Accepted Answer

A) True 
 B)False

Question 6

The U.S.income-maintenance program consists of two kinds of programs.They are:

Accepted Answer

A)  the minimum wage law and Social Security. 
B)  antidiscrimination law and education and training programs. 
C)  social insurance and public assistance,or "welfare." 
D)  progressive income taxes and transfer payments. 
A)  the minimum wage law and Social Security. 
B)  antidiscrimination law and education and training programs. 
C)  social insurance and public assistance,or "welfare." 
D)  progressive income taxes and transfer payments.

Question 7

For an employer biased against African Americans,the discrimination coefficient d:

Accepted Answer

A)  will decrease if the employer becomes more prejudiced against African Americans. 
B)  must equal the actual ratio of African-American to white wage rates. 
C)  measures the amount an employer is willing to pay to hire a white over hiring an African-American worker. 
D)  varies inversely with the actual African-American-white wage ratio. 
A)  will decrease if the employer becomes more prejudiced against African Americans. 
B)  must equal the actual ratio of African-American to white wage rates. 
C)  measures the amount an employer is willing to pay to hire a white over hiring an African-American worker. 
D)  varies inversely with the actual African-American-white wage ratio.

Question 8

The TANF program is designed to:

Accepted Answer

A)  increase the minimum wage. 
B)  shift people from welfare to employment. 
C)  provide medical insurance to poverty level workers. 
D)  provide income to the blind and disabled. 
A)  increase the minimum wage. 
B)  shift people from welfare to employment. 
C)  provide medical insurance to poverty level workers. 
D)  provide income to the blind and disabled.

Question 9

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 10

The standard data on income distribution do not include the value of noncash transfers as income.

Accepted Answer

A) True 
 B)False

Question 11

The closer the Lorenz curve is to the diagonal,the greater is the degree of income inequality.

Accepted Answer

A) True 
 B)False

Question 12

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 13

An employer whose discrimination coefficient is $4 will:

Accepted Answer

A)  refuse to hire nonpreferred-race workers at any wage rate. 
B)  hire only nonpreferred-race workers if the actual nonpreferred-preferred wage differential is $3 an hour. 
C)  hire only preferred-race workers if the actual nonpreferred-preferred wage differential is $3 an hour. 
D)  hire only preferred-race workers if the nonpreferred-preferred wage differential is $4. 
A)  refuse to hire nonpreferred-race workers at any wage rate. 
B)  hire only nonpreferred-race workers if the actual nonpreferred-preferred wage differential is $3 an hour. 
C)  hire only preferred-race workers if the actual nonpreferred-preferred wage differential is $3 an hour. 
D)  hire only preferred-race workers if the nonpreferred-preferred wage differential is $4.

Question 14

The lowest quintile of households in the income distribution receives about:

Accepted Answer

A)  2.4 percent of the total income. 
B)  3.2 percent of the total income. 
C)  8.4 percent of the total income. 
D)  10 percent of the total income. 
A)  2.4 percent of the total income. 
B)  3.2 percent of the total income. 
C)  8.4 percent of the total income. 
D)  10 percent of the total income.

Question 15

The crowding model of occupational segregation predicts that domestic output will increase if occupational segregation is ended.

Accepted Answer

A) True 
 B)False

Question 16

Since its inception in 1996,the Temporary Assistance for Needy Families (TANF)program has:

Accepted Answer

A)  increased,rather than reduced,the number of people on welfare. 
B)  reduced the number of people on welfare by more than one-half. 
C)  aided the poor by automatically increasing welfare payments when inflation occurs. 
D)  greatly increased the unemployment rate. 
A)  increased,rather than reduced,the number of people on welfare. 
B)  reduced the number of people on welfare by more than one-half. 
C)  aided the poor by automatically increasing welfare payments when inflation occurs. 
D)  greatly increased the unemployment rate.

Question 17

The TANF program:

Accepted Answer

A)  is a form of social insurance. 
B)  has been found to be unconstitutional by the Supreme Court. 
C)  limits total lifetime welfare benefits to 5 years and requires able-bodied adults to work after receiving benefits for 2 years. 
D)  perpetuates the so-called culture of poverty. 
A)  is a form of social insurance. 
B)  has been found to be unconstitutional by the Supreme Court. 
C)  limits total lifetime welfare benefits to 5 years and requires able-bodied adults to work after receiving benefits for 2 years. 
D)  perpetuates the so-called culture of poverty.

Question 18

Statistical discrimination:

Accepted Answer

A)  is malicious. 
B)  is profitable but not malicious. 
C)  cannot persist because of competition. 
D)  explains all occupational discrimination. 
A)  is malicious. 
B)  is profitable but not malicious. 
C)  cannot persist because of competition. 
D)  explains all occupational discrimination.

Question 19

Statistical discrimination:

Accepted Answer

A)  can persist in the long run if differences in average characteristics among groups continue. 
B)  will tend to diminish in the long run because nondiscriminating firms will drive out discriminating firms. 
C)  requires that employers have discrimination coefficients greater than zero. 
D)  is also known as occupational segregation. 
A)  can persist in the long run if differences in average characteristics among groups continue. 
B)  will tend to diminish in the long run because nondiscriminating firms will drive out discriminating firms. 
C)  requires that employers have discrimination coefficients greater than zero. 
D)  is also known as occupational segregation.

Question 20

The U.S.poverty rate for:

Accepted Answer

A)  Hispanics is higher than that for African Americans. 
B)  children under 18 years of age is higher than for the overall population. 
C)  African Americans has increased since 1993. 
D)  foreign-born individuals who are not citizens is below the poverty rate for the general population. 
A)  Hispanics is higher than that for African Americans. 
B)  children under 18 years of age is higher than for the overall population. 
C)  African Americans has increased since 1993. 
D)  foreign-born individuals who are not citizens is below the poverty rate for the general population.

Exam 22: Income Inequality Poverty and Discrimination

Which of the following groups has the lowest poverty rate?

(Consider This)According to The Economist magazine,growing income inequality is less of a concern because:

Discrimination creates a:

By December 2009,the recession that began in December 2007:

Labor market discrimination increases the size of the nation's GDP by promoting specialization on the basis of race.

The U.S.income-maintenance program consists of two kinds of programs.They are:

For an employer biased against African Americans,the discrimination coefficient d:

The TANF program is designed to:

In 2010,the wealthiest 1 percent of U.S.households held about ____ percent of U.S.household wealth.

The standard data on income distribution do not include the value of noncash transfers as income.

The closer the Lorenz curve is to the diagonal,the greater is the degree of income inequality.

The primary purpose of Social Security is to:

An employer whose discrimination coefficient is $4 will:

The lowest quintile of households in the income distribution receives about:

The crowding model of occupational segregation predicts that domestic output will increase if occupational segregation is ended.

Since its inception in 1996,the Temporary Assistance for Needy Families (TANF)program has:

The TANF program:

Statistical discrimination:

Statistical discrimination:

The U.S.poverty rate for:

Health Care

Immigration

An Introduction to Macroeconomics

Measuring Domestic Output and National Income

Economic Growth

Business Cycles, Unemployment, and Inflation

Basic Macroeconomic Relationships

The Aggregate Expenditures Model

Aggregate Demand and Aggregate Supply

The Balance of Payments, Exchange Rates, and Trade Deficits

Money, Banking, and Financial Institutions

Money Creation

Interest Rates and Monetary Policy

Financial Economics

Extending the Analysis of Aggregate Supply

Current Issues in Macro Theory and Policy

International Trade

The Balance of Payments, Exchange Rates, and Trade Deficits

The Economics of Developing Countries

The United States and the Global Economy

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