Question 1

An advantage of a negative income tax is that it does not encourage the breakup of families because the only criterion for assistance is family income.

Accepted Answer

A) True 
 B)False

Question 2

Libertarians believe that

Accepted Answer

A)   the government should choose just policies as evaluated by an impartial observer behind a "veil of ignorance."
B)   the government should aim to maximize the well-being of the worst-off person in society.
C)   everyone in society should have equal utility.
D)   the government should not redistribute income.E) All of the above
F) B) and C)

Question 3

The United States has less income inequality than

Accepted Answer

A)   Japan.
B)   Canada.
C)   Germany.
D)   South Africa.E) B) and C)
F) A) and B)

Question 4

Table 20-1
Distribution of Income in Imagination
 
-Refer to Table 20-1.Where would the government of Imagination have to set the poverty line to have a poverty rate of about 28%?

Accepted Answer

A)   $0
B)   $18,000
C)   $36,000
D)   $54,000E) C) and D)
F) A) and B)

Question 5

The United States has a more equal income distribution than many developing economies such as Mexico,South Africa,and Brazil.

Accepted Answer

A) True 
 B)False

Question 6

The poverty line in the country of Abbyville is $15,000.The distribution of income for Abbyville is as follows:  The poverty rate in Abbyville is

Accepted Answer

A)   12 percent.
B)   32 percent.
C)   50 percent.
D)   68 percent.E) A) and D)
F) A) and C)

Question 7

Standard measurements of the degree of income inequality take both money income and in-kind transfers into account.

Accepted Answer

A) True 
 B)False

Question 8

The top 5 percent of U.S.annual family income in 2008 was $200,000 or more.

Accepted Answer

A) True 
 B)False

Question 9

A society consists of three individuals: Arthur,Billie,and Chris.In terms of income and utility,Arthur is currently best-off,Billie ranks in the middle,and Chris is worst-off.Which of the following statements is correct?

Accepted Answer

A)   Utilitarianism suggests that government policies should strive to maximize Billie's utility.
B)   Liberalism suggests that government policies should strive to increase Chris's utility.
C)   Libertarianism suggests that government policies should strive to maximize Arthur's utility.
D)   Mobilism suggests that government policies should strive to make Chris better off than Billie.E) A) and C)
F) None of the above

Question 10

Which of the following is an advantage of an in-kind transfer in comparison to a cash payment?

Accepted Answer

A)   In-kind transfers cost less to administer than cash transfers.
B)   In-kind transfers restrict the use of the benefit;thus,recipients receive necessities such as food and health care.
C)   In-kind transfers are more efficient than cash transfers.
D)   In-kind transfers give the recipient more utility than cash transfers.E) None of the above
F) B) and C)

Question 11

Since the early 1970s,welfare benefits have declined,

Accepted Answer

A)   which is largely due to the success of the negative income tax program.
B)   which is largely due to the success of private charities.
C)   yet the percentage of children living with only one parent has increased.
D)   and the percentage of children living with only one parent has decreased.E) C) and D)
F) A) and B)

Question 12

Table 20-1
Distribution of Income in Imagination
 
-Refer to Table 20-1.If the poverty line in Imagination is $18,000,what is the poverty rate?

Accepted Answer

The answer of Table 20-1
Distribution of Income in Imagination
 
-Refer...

Question 13

Many Democrats who campaigned in the 2006 elections supported raising the U.S.minimum wage.Critics of raising the minimum wage argue that minimum-wage laws are

Accepted Answer

A)   too expensive for local governments to fund.
B)   too expensive for local governments to administer.
C)   imprecise in their ability to help the working poor.
D)   easy for businesses to pay.E) A) and B)
F) B) and C)

Question 14

Table 20-1
Distribution of Income in Imagination
 
-Refer to Table 20-1.The Human Development Report computes a measure of inequality by dividing the income of the richest 10% of the population by the income of the poorest 10%.If the value for this measure of inequality in the US is 15.9 and the value for India is 8.6,how does Imagination compare to these two nations?

Accepted Answer

Imagination has a mo...

Question 15

Which of the following statements is correct?

Accepted Answer

A)   An advantage of a minimum-wage law is that it may benefit unskilled workers who are not low-income workers.
B)   An advantage of a negative income tax program is that a poor person who chooses not to work many hours would receive a cash benefit.
C)   An advantage of an Earned Income Tax Credit (EIT
C)  is that a person who is unable to work due to a disability does not benefit from the program.
D)   Welfare reform enacted in 1996 limited the amount of time recipients could stay on welfare.E) B) and D)
F) C) and D)

Question 16

Table 20-9
Poverty Thresholds in 2002,by Size of Family and Number of Related Children Under 18 Years
[Dollars]
  Source: U.S.Bureau of the Census,Current Population Survey.
-Refer to Table 20-9.What is the poverty line for a family of three with one child?

Accepted Answer

A)   $12,072
B)   $12,400
C)   $14,480
D)   $14,494E) All of the above
F) B) and D)

Question 17

Libertarians believe that in considering economic fairness,one should primarily consider the

Accepted Answer

A)   outcome of the system.
B)   process by which outcomes arise.
C)   maximin criterion.
D)   maximization total social utility.E) All of the above
F) C) and D)

Question 18

Figure 20-4
Poverty Rates by Age 
-Refer to Figure 20-4.In 1968,the percent of elderly aged 65 and over in poverty is

Accepted Answer

A)   higher than both the percentage of adults aged 18 to 64 and the percentage of children under age 18 in poverty.
B)   higher than the percentage of adults aged 18 to 64 but is lower than the percentage of children under age 18 in poverty.
C)   lower than both the percentage of adults aged 18 to 64 and the percentage of children under age 18 in poverty.
D)   is lower than the percentage of adults aged 18 to 64 but is higher than the percentage of children under age 18 in poverty.E) None of the above
F) A) and C)

Question 19

Which of the following is correct?

Accepted Answer

A)   Incomes tend to be high for young workers.
B)   Incomes tend to rise sharply at retirement.
C)   Incomes tend to peak at around age 50.
D)   Current income is more equally distributed than permanent income.E) C) and D)
F) B) and D)

Question 20

If the value of in-kind transfers are taken into account,the number of families living in poverty in the United States would

Accepted Answer

A)   increase by about 1 percent.
B)   decrease by about 1 percent.
C)   decrease by about 5 percent.
D)   decrease by about 10 percent.E) A) and B)
F) B) and C)

Exam 20: Income Inequality and Poverty

Table 20-1 Distribution of Income in Imagination -Refer to Table 20-1.Where would the government of Imagination have to set the poverty line to have a poverty rate of about 28%?

Correct Answer
verified

Since the early 1970s,welfare benefits have declined,

Correct Answer
verified

Libertarians believe that in considering economic fairness,one should primarily consider the

Correct Answer
verified

Many Democrats who campaigned in the 2006 elections supported raising the U.S.minimum wage.Critics of raising the minimum wage argue that minimum-wage laws are

Correct Answer
verified

The top 5 percent of U.S.annual family income in 2008 was $200,000 or more.

Correct Answer
verified

Table 20-1 Distribution of Income in Imagination -Refer to Table 20-1.If the poverty line in Imagination is $18,000,what is the poverty rate?

Correct Answer
verified

An advantage of a negative income tax is that it does not encourage the breakup of families because the only criterion for assistance is family income.

Correct Answer
verified

Libertarians believe that

Correct Answer
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Which of the following is correct?

Correct Answer
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A society consists of three individuals: Arthur,Billie,and Chris.In terms of income and utility,Arthur is currently best-off,Billie ranks in the middle,and Chris is worst-off.Which of the following statements is correct?

Correct Answer
verified

If the value of in-kind transfers are taken into account,the number of families living in poverty in the United States would

Correct Answer
verified

Table 20-9 Poverty Thresholds in 2002,by Size of Family and Number of Related Children Under 18 Years [Dollars] Source: U.S.Bureau of the Census,Current Population Survey. -Refer to Table 20-9.What is the poverty line for a family of three with one child?

Correct Answer
verified

Standard measurements of the degree of income inequality take both money income and in-kind transfers into account.

Correct Answer
verified

The United States has a more equal income distribution than many developing economies such as Mexico,South Africa,and Brazil.

Correct Answer
verified

Which of the following is an advantage of an in-kind transfer in comparison to a cash payment?

Correct Answer
verified

Which of the following statements is correct?

Correct Answer
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Correct Answer
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Imagination has a mo...
View Answer

The United States has less income inequality than

Correct Answer
verified

Figure 20-4 Poverty Rates by Age -Refer to Figure 20-4.In 1968,the percent of elderly aged 65 and over in poverty is

Correct Answer
verified

The poverty line in the country of Abbyville is $15,000.The distribution of income for Abbyville is as follows: The poverty rate in Abbyville is

Correct Answer
verified

Exam 20: Income Inequality and Poverty

Table 20-1 Distribution of Income in Imagination -Refer to Table 20-1.Where would the government of Imagination have to set the poverty line to have a poverty rate of about 28%?

Correct AnswerverifiedShow Answer

Since the early 1970s,welfare benefits have declined,

Correct AnswerverifiedShow Answer

Libertarians believe that in considering economic fairness,one should primarily consider the

Correct AnswerverifiedShow Answer

Many Democrats who campaigned in the 2006 elections supported raising the U.S.minimum wage.Critics of raising the minimum wage argue that minimum-wage laws are

Correct AnswerverifiedShow Answer

The top 5 percent of U.S.annual family income in 2008 was $200,000 or more.

Correct AnswerverifiedShow Answer

Table 20-1 Distribution of Income in Imagination -Refer to Table 20-1.If the poverty line in Imagination is $18,000,what is the poverty rate?

Correct AnswerverifiedShow Answer

An advantage of a negative income tax is that it does not encourage the breakup of families because the only criterion for assistance is family income.

Correct AnswerverifiedShow Answer

Libertarians believe that

Correct AnswerverifiedShow Answer

Which of the following is correct?

Correct AnswerverifiedShow Answer

A society consists of three individuals: Arthur,Billie,and Chris.In terms of income and utility,Arthur is currently best-off,Billie ranks in the middle,and Chris is worst-off.Which of the following statements is correct?

Correct AnswerverifiedShow Answer

If the value of in-kind transfers are taken into account,the number of families living in poverty in the United States would

Correct AnswerverifiedShow Answer

Table 20-9 Poverty Thresholds in 2002,by Size of Family and Number of Related Children Under 18 Years [Dollars] Source: U.S.Bureau of the Census,Current Population Survey. -Refer to Table 20-9.What is the poverty line for a family of three with one child?

Correct AnswerverifiedShow Answer

Standard measurements of the degree of income inequality take both money income and in-kind transfers into account.

Correct AnswerverifiedShow Answer

The United States has a more equal income distribution than many developing economies such as Mexico,South Africa,and Brazil.

Correct AnswerverifiedShow Answer

Which of the following is an advantage of an in-kind transfer in comparison to a cash payment?

Correct AnswerverifiedShow Answer

Which of the following statements is correct?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedImagination has a mo...View AnswerShow Answer

The United States has less income inequality than

Correct AnswerverifiedShow Answer

Figure 20-4 Poverty Rates by Age -Refer to Figure 20-4.In 1968,the percent of elderly aged 65 and over in poverty is

Correct AnswerverifiedShow Answer

The poverty line in the country of Abbyville is $15,000.The distribution of income for Abbyville is as follows: The poverty rate in Abbyville is

Correct AnswerverifiedShow Answer

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Imagination has a mo...
View Answer

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