Question 1

Compared to the 1970s,the poverty rate in the early 1980s was:

Accepted Answer

A)   significantly lower.
B)   slightly lower.
C)   higher.
D)   about the same.E) C) and D)
F) B) and D)

Question 2

Under a guaranteed minimum annual income plan,if the minimum income level is $5000 with a benefit-reduction rate of 50 percent,the earnings level at which benefits (transfer payments) would be zero is:

Accepted Answer

A)   $2500.
B)   $5000.
C)   $8000.
D)   $10,000.The worker is guaranteed an income of $5000.If the worker made $10,000,he would have 50 percent of the earned income taken away.This means the guaranteed income disappears.E) A) and D)
F) B) and D)

Question 3

Complete income inequality using the Gini ratio would be reflected by a value of:

Accepted Answer

A)   2.
B)   3.
C)   0.
D)   1.E) B) and D)
F) C) and D)

Question 4

The degree of inequality in the distribution of income in an economy is depicted in a:

Accepted Answer

A)   Lorenz curve.
B)   Phillips curve.
C)   Laffer curve.
D)   supply curve.E) A) and C)
F) A) and B)

Question 5

In 2009,about what percentage of households had personal income of $100,000 or more?

Accepted Answer

A)   3 percent
B)   8 percent
C)   16 percent
D)   20 percentE) None of the above
F) C) and D)

Question 6

Based on 2009 data on the distribution of personal income:

Accepted Answer

A)   7 percent of all households receive $100,000 and above.
B)   17 percent of all households receive $100,000 and above.
C)   20 percent of all households receive $100,000 and above.
D)   26 percent of all households receive $100,000 and above.E) A) and D)
F) All of the above

Question 7

Which of the following provides public assistance to those who are blind and otherwise disabled?

Accepted Answer

A)   Medicare
B)   Supplemental Security Income (SSI) 
C)   Medicaid
D)   SNAPE) B) and C)
F) A) and B)

Question 8

The Gini ratio is determined by:

Accepted Answer

A)   adding the area between the Lorenz curve and the diagonal to the total area below the diagonal.
B)   dividing the area between the Lorenz curve and the diagonal by the total area below the diagonal.
C)   multiplying the area between the Lorenz curve and the diagonal by the total area below the diagonal.
D)   subtracting the area between the Lorenz curve and the diagonal from the total area below the diagonal.E) A) and D)
F) A) and C)

Question 9

Which is designed to provide cash assistance to families with children?

Accepted Answer

A)   SSI
B)   FFS
C)   TANF
D)   Social SecurityE) C) and D)
F) All of the above

Question 10

About what percentage of the population in the United States lived in poverty in 2009?

Accepted Answer

A)   14 percent
B)   24 percent
C)   34 percent
D)   44 percentE) B) and D)
F) All of the above

Question 11

The eligibility basis for food stamps (SNAP) is:

Accepted Answer

A)   age.
B)   illness.
C)   income.
D)   disability.E) A) and D)
F) B) and C)

Question 12

Refer to the above graph,which shows four different Lorenz curves (I,II,III,and IV) .Which change would indicate that there has been an increase in income equality? A movement from point:

Accepted Answer

A)   c to a.
B)   a to d.
C)   d to a.
D)   b to e.E) A) and B)
F) A) and C)

Question 13

In 2009,the poverty line for a family of four was:

Accepted Answer

A)   $8300.
B)   $10,460.
C)   $21,954.
D)   $26,541.E) None of the above
F) A) and D)

Question 14

Refer to the above graph,which shows four different Lorenz curves (I,II,III,and IV) .What point indicates that 60 percent of the households receive only 40 percent of the income?

Accepted Answer

A)   a
B)   b
C)   c
D)   dE) All of the above
F) B) and C)

Question 15

Which statement about the distribution of poverty is correct?

Accepted Answer

A)   About 30 percent of households headed by females live in poverty.
B)   About 33 percent of households headed by whites live in poverty.
C)   About 50 percent of children under the age of 18 live in poverty.
D)   About 50 percent of the elderly (65 or older) live in poverty.E) A) and B)
F) B) and D)

Question 16

Using the data in the above table,what percentage should be reported in blank D of column 3?

Accepted Answer

A)   21
B)   35
C)   85
D)   94The blank in column 3 is found by adding the value in column 2 to the previous value in column 3.Thus,D is 72 + 13 = 85.E) A) and D)
F) A) and C)

Question 17

In 2009,an unattached individual would be defined as living in poverty if his or her income was less than:

Accepted Answer

A)   $10,956.
B)   $11,243.
C)   $14,654.
D)   $15,726.E) A) and B)
F) A) and C)

Question 18

Those who have been critical of welfare contend that it reduces motivation to work.

Accepted Answer

A) True 
 B)False

Question 19

Government programs,such as Social Security,food stamps,AFDC,SSI,Medicare,and Medicaid,that guarantee particular levels of transfer payments to all who fit the programs' criteria are called:

Accepted Answer

A)   public assistance programs.
B)   social insurance programs.
C)   benefit-reduction programs.
D)   entitlement programs.E) C) and D)
F) A) and D)

Question 20

In 2009,about what percentage of households had personal income of $50,000-$74,999?

Accepted Answer

A)   2 percent
B)   5 percent
C)   11 percent
D)   18 percentE) B) and C)
F) A) and C)

Exam 11: Income Inequality and Poverty

The Gini ratio is determined by:

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Refer to the above graph,which shows four different Lorenz curves (I,II,III,and IV) .What point indicates that 60 percent of the households receive only 40 percent of the income?

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In 2009,the poverty line for a family of four was:

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Those who have been critical of welfare contend that it reduces motivation to work.

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Complete income inequality using the Gini ratio would be reflected by a value of:

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About what percentage of the population in the United States lived in poverty in 2009?

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The eligibility basis for food stamps (SNAP) is:

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Compared to the 1970s,the poverty rate in the early 1980s was:

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Which of the following provides public assistance to those who are blind and otherwise disabled?

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In 2009,about what percentage of households had personal income of $100,000 or more?

Correct AnswerverifiedShow Answer

Under a guaranteed minimum annual income plan,if the minimum income level is $5000 with a benefit-reduction rate of 50 percent,the earnings level at which benefits (transfer payments) would be zero is:

Correct AnswerverifiedShow Answer

The degree of inequality in the distribution of income in an economy is depicted in a:

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Which is designed to provide cash assistance to families with children?

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In 2009,an unattached individual would be defined as living in poverty if his or her income was less than:

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Using the data in the above table,what percentage should be reported in blank D of column 3?

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Government programs,such as Social Security,food stamps,AFDC,SSI,Medicare,and Medicaid,that guarantee particular levels of transfer payments to all who fit the programs' criteria are called:

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Based on 2009 data on the distribution of personal income:

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Refer to the above graph,which shows four different Lorenz curves (I,II,III,and IV) .Which change would indicate that there has been an increase in income equality? A movement from point:

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In 2009,about what percentage of households had personal income of $50,000-$74,999?

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Which statement about the distribution of poverty is correct?

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