Question 1

Which of the following is not correct?

Accepted Answer

A)  Welfare is a broad term that includes a variety of government programs designed to help poor people.
B)  Since the early 1970s, welfare benefits adjusted for inflation have increased, as has the percentage of children living with only one parent.
C)  Critics of welfare programs argue that they can create incentives for unmarried women to have children.
D)  Supporters argue that welfare doesn't cause the decline of two-parent families.E) B) and C)
F) A) and D)

Question 2

Supplemental Security Income (SSI)  is a type of

Accepted Answer

A)  in-kind transfer.
B)  minimum wage law.
C)  private charity.
D)  welfare payment.E) A) and D)
F) None of the above

Question 3

Critics argue that a disadvantage of minimum-wage laws is that they do not effectively target the working poor because many minimum-wage workers are the teenage children of middle-income families.

Accepted Answer

A) True 
 B)False

Question 4

A goal of libertarians is to provide citizens with equal opportunities rather than to ensure equal outcomes.

Accepted Answer

A) True 
 B)False

Question 5

Table 20-13
The following table shows the distribution of income in Widgetapolis.  ​
-Refer to Table 20-13. If the poverty rate is 19%, where is the poverty line in Widgetapolis?

Accepted Answer

A)  under $39,000
B)  between $39,000 and $59,999
C)  between $60,000 and $81,999
D)  between $82,000 and $109,999E) C) and D)
F) None of the above

Question 6

Table 20-5
Distribution of Income in Umakastan 
-Refer to Table 20-5. Where would the government of Umakastan have to set the poverty line to have a poverty rate of about 28%?

Accepted Answer

A)  $20,000
B)  $34,690
C)  $38,000
D)  $56,000E) None of the above
F) A) and D)

Question 7

Figure 20-5 o, and employment would rise above Qo. B) above Wo, and employment would fall below Qo. C) below Wo, and employment would rise above Qo. D) below Wo, and employment would fall below Qo." class="answers-bank-image d-inline" rel="preload" >
-Refer to Figure 20-5. An effective minimum wage would be set at a level

Accepted Answer

A)  above Wo, and employment would rise above Qo.
B)  above Wo, and employment would fall below Qo.
C)  below Wo, and employment would rise above Qo.
D)  below Wo, and employment would fall below Qo.E) B) and C)
F) None of the above

Question 8

The poverty rate is the percentage of the population whose family income falls below an absolute level called the .

Accepted Answer

The answer of The poverty rate is the percentage of...

Question 9

The poverty rate is

Accepted Answer

A)  a measure of income inequality across families.
B)  the percentage of the population whose family income falls below a specified level.
C)  an absolute level of income set by the federal government for each family size.
D)  measured by the number of in-kind transfers that a family receives.E) A) and B)
F) A) and C)

Question 10

The poverty rate for female households with no spouse present is approximately

Accepted Answer

A)  10 percent.
B)  20 percent.
C)  30 percent.
D)  40 percent.E) A) and C)
F) None of the above

Question 11

When designing public policies, which income group would philosopher John Rawls argue needs the most attention?

Accepted Answer

A)  Individuals located in the bottom fifth of the income distribution.
B)  Individuals located at the average income level.
C)  Individuals located in the top fifth of the income distribution.
D)  Individuals located in the top five percent of the income distribution.E) B) and D)
F) A) and C)

Question 12

Table 20-9
Income Inequality in the United States
The values in the table reflect the percentages of pre-tax-and transfer income.  Source: US Census Bureau
-Refer to Table 20-9. In 2010, the top fifth of the US population had

Accepted Answer

A)  50.2% more income than the remainder of the population.
B)  a lower share of income than the top fifth in 1980.
C)  about 15 times as much income as the bottom fifth.
D)  about 6 times as much income as the middle fifth.E) A) and C)
F) All of the above

Question 13

Scenario 20-8
Suppose the government implemented a negative income tax and used the following formula to compute a family's tax liability:
Taxes owed = (1/4 of income) - $14,000
​
​
-Refer to Scenario 20-8. The government does not have to pay a subsidy to any family through this negative income tax if the family with the lowest income earns $50,000.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following statements is correct?

Accepted Answer

A)  The distribution of annual income accurately reflects the distribution of living standards.
B)  Permanent incomes are more equally distributed than annual incomes.
C)  Transitory changes in income generally have a significant impact on a family's standard of living.
D)  Annual income is more equally distributed than permanent income.E) C) and D)
F) All of the above

Question 15

The founders of utilitarianism include

Accepted Answer

A)  A. C. Pigou and John Maynard Keynes.
B)  Jeremy Bentham and John Stuart Mill.
C)  Augustin Cournot and Jean B. Say.
D)  A. Kondratieff and Thomas Malthus.E) All of the above
F) A) and C)

Question 16

In-kind transfers are politically popular because

Accepted Answer

A)  they provide high quality food and shelter.
B)  they provide cash.
C)  allow resale of food stamps for cash, if needed.
D)  the public believes that the aid is not going to support alcohol and drug addiction.E) B) and C)
F) C) 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) B) and C)
F) None of the above

Question 18

Figure 20-3 
-Refer to Figure 20-3. In 1968, the percent of children under age 18 in poverty is

Accepted Answer

A)  higher than both the percentage of adults aged 18 to 64 and the percentage of elderly aged 65 and over in poverty.
B)  higher than the percentage of adults aged 18 to 64 but is lower than the percentage of elderly aged 65 and over in poverty.
C)  lower than both the percentage of adults aged 18 to 64 and the percentage of elderly aged 65 and over in poverty.
D)  lower than the percentage of adults aged 18 to 64 but is higher than the percentage of elderly aged 65 and over in poverty.E) A) and B)
F) B) and D)

Question 19

Figure 20-3 
-Refer to Figure 20-3. 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) A) and C)
F) B) and C)

Question 20

Suppose a society consists of only two people, John and Jane. A utilitarian would say that the proper role of government in this society is to

Accepted Answer

A)  equalize the incomes of John and Jane.
B)  equalize John's utility and Jane's utility.
C)  equalize John's marginal utility and Jane's marginal utility.
D)  maximize the sum of John's utility and Jane's utility.E) C) and D)
F) None of the above

Exam 20: Income Inequality and Poverty

Supplemental Security Income (SSI) is a type of

Correct Answer
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Correct Answer
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Figure 20-3 -Refer to Figure 20-3. In 1968, the percent of children under age 18 in poverty is

Correct Answer
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A goal of libertarians is to provide citizens with equal opportunities rather than to ensure equal outcomes.

Correct Answer
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The founders of utilitarianism include

Correct Answer
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Table 20-5 Distribution of Income in Umakastan -Refer to Table 20-5. Where would the government of Umakastan have to set the poverty line to have a poverty rate of about 28%?

Correct Answer
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Figure 20-3 -Refer to Figure 20-3. In 1968, the percent of elderly aged 65 and over in poverty is

Correct Answer
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Critics argue that a disadvantage of minimum-wage laws is that they do not effectively target the working poor because many minimum-wage workers are the teenage children of middle-income families.

Correct Answer
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The poverty rate is the percentage of the population whose family income falls below an absolute level called the .

Correct Answer
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Suppose a society consists of only two people, John and Jane. A utilitarian would say that the proper role of government in this society is to

Correct Answer
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Table 20-13 The following table shows the distribution of income in Widgetapolis. -Refer to Table 20-13. If the poverty rate is 19%, where is the poverty line in Widgetapolis?

Correct Answer
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The poverty rate for female households with no spouse present is approximately

Correct Answer
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Figure 20-5 -Refer to Figure 20-5. An effective minimum wage would be set at a level

Correct Answer
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In-kind transfers are politically popular because

Correct Answer
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Which of the following is not correct?

Correct Answer
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The poverty rate is

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

Correct Answer
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Table 20-9 Income Inequality in the United States The values in the table reflect the percentages of pre-tax-and transfer income. Source: US Census Bureau -Refer to Table 20-9. In 2010, the top fifth of the US population had

Correct Answer
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When designing public policies, which income group would philosopher John Rawls argue needs the most attention?

Correct Answer
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Which of the following statements is correct?

Correct Answer
verified

Exam 20: Income Inequality and Poverty

Supplemental Security Income (SSI) is a type of

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Figure 20-3 -Refer to Figure 20-3. In 1968, the percent of children under age 18 in poverty is

Correct AnswerverifiedShow Answer

A goal of libertarians is to provide citizens with equal opportunities rather than to ensure equal outcomes.

Correct AnswerverifiedShow Answer

The founders of utilitarianism include

Correct AnswerverifiedShow Answer

Table 20-5 Distribution of Income in Umakastan -Refer to Table 20-5. Where would the government of Umakastan have to set the poverty line to have a poverty rate of about 28%?

Correct AnswerverifiedShow Answer

Figure 20-3 -Refer to Figure 20-3. In 1968, the percent of elderly aged 65 and over in poverty is

Correct AnswerverifiedShow Answer

Critics argue that a disadvantage of minimum-wage laws is that they do not effectively target the working poor because many minimum-wage workers are the teenage children of middle-income families.

Correct AnswerverifiedShow Answer

The poverty rate is the percentage of the population whose family income falls below an absolute level called the .

Correct AnswerverifiedShow Answer

Suppose a society consists of only two people, John and Jane. A utilitarian would say that the proper role of government in this society is to

Correct AnswerverifiedShow Answer

Table 20-13 The following table shows the distribution of income in Widgetapolis. ​ -Refer to Table 20-13. If the poverty rate is 19%, where is the poverty line in Widgetapolis?

Correct AnswerverifiedShow Answer

The poverty rate for female households with no spouse present is approximately

Correct AnswerverifiedShow Answer

Figure 20-5 -Refer to Figure 20-5. An effective minimum wage would be set at a level

Correct AnswerverifiedShow Answer

In-kind transfers are politically popular because

Correct AnswerverifiedShow Answer

Which of the following is not correct?

Correct AnswerverifiedShow Answer

The poverty rate is

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Table 20-9 Income Inequality in the United States The values in the table reflect the percentages of pre-tax-and transfer income. Source: US Census Bureau -Refer to Table 20-9. In 2010, the top fifth of the US population had

Correct AnswerverifiedShow Answer

When designing public policies, which income group would philosopher John Rawls argue needs the most attention?

Correct AnswerverifiedShow Answer

Which of the following statements is correct?

Correct AnswerverifiedShow Answer

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Table 20-13 The following table shows the distribution of income in Widgetapolis. -Refer to Table 20-13. If the poverty rate is 19%, where is the poverty line in Widgetapolis?

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