Exam 20: Income Inequality and Poverty

The Hicks family owns a blueberry farm in Maine. The Ward family owns a blueberry farm in Massachusetts. A drought in Massachusetts destroys half of the Ward family's harvest for one year. For the Ward family, their

Which of the following groups has the lowest poverty rate?

Which of the three political philosophies discussed in the textbook, if any, think the government should not take from some individuals and give to others to achieve any particular distribution of income?

What is one argument made by proponents of in-kind transfers over cash payments to the needy?

Table 20-6 -Refer to Table 20-6. In both 2011 and 2012, approximately 25% of the population earned less than

The study by economists Cox and Alm found

Suppose that Family A borrows money when its car breaks down and saves money when the wife receives a holiday bonus from her employer. Suppose that Family B borrows money to buy elaborate birthday presents for the children and spends the husband's holiday bonus on a vacation to Florida. Which of the following is correct?

A negative income tax system is designed to

One existing government program that works much like a negative income tax is Medicaid.

Liberalism aims to raise the welfare of the worst-off person in society. This rule is called the

The distribution of income for Abbyville is as follows: Number of Families Income 300 less than $15,000 500 between $15,000 and $20,000 900 between $20,000 and $25,000 600 between $25,000 and $30,000 200 over $30,000 If the poverty rate in Abbyville is 12 percent, what is the poverty line in Abbyville?

The poverty line in the country of Abbyville is $15,000. The distribution of income for Abbyville is as follows: Number of Families Income 300 less than $15,000 500 between $15,000 and $20,000 900 between $20,000 and $25,000 600 between $25,000 and $30,000 200 over $30,000 The poverty rate in Abbyville is

Comparing the US to other countries ranked by inequality,

Assume that the government proposes a negative income tax that calculates the taxes owed as follows: taxes owed equal 30% of income less $12,000. A family that earns an income of $40,000 will

Which of the following is not correct?

Figure 20-3 -Refer to Figure 20-3. In 2011, the percent of elderly aged 65 and over in poverty is

Poverty is found to be correlated with

Despite continued growth in average income since the early 1970s, the poverty rate has not declined below the level reached in 1973.

"Only individual members of society earn income, not society itself." This statement is most closely associated with the political philosophy of a

Which of the following is not correct?