Question 1

Analysis of the poverty rates in the United States indicates that:​

Accepted Answer

A)  there has been a feminization of poverty.
B)  outsourcing has increased the incidence of poverty among educated workers.
C)  outsourcing has decreased the incidence of poverty among educated workers.
D)  the elderly have benefitted the least from the welfare benefit programs.
E)  the poverty rate was low during recessions.F) D) and E)
G) A) and B) A

Question 2

The same households do not necessarily remain rich or poor over time because:​

Accepted Answer

A)  the normal life cycle pattern of income changes over time.
B)  the productivity of workers vary with on-the-job training.
C)  an economy experiences fluctuations in the level of economic activities.
D)  an economy experiences changes in inflation rates over time.
E)  technological changes influence the income earned by workers.F) All of the above
G) A) and D)

Question 3

Which of the following would not account for the observed wage differential between African Americans and whites in the United States?​

Accepted Answer

A)  Differences in the quantity of on-the-job training
B)  Differences in the quality of education
C)  Discrimination by employers
D)  Differences in job experience
E)  Differences in access to public assistance programsF) All of the above
G) C) and D)

Question 4

The requirement that firms doing business with the federal government set numerical hiring, promotion, and training goals was meant to:​

Accepted Answer

A)  increase the income level of households headed by females.
B)  lower the disparity in wages between white and black workers.
C)  increase the demand for skilled labor.
D)  organize the unskilled labor force and help them form labor unions.
E)  protect the rights of workers affiliated to labor unions.F) A) and C)
G) None of the above

Question 5

One feature of the Temporary Assistance for Needy Families (TANF)  program is that it:​

Accepted Answer

A)  provides low-cost housing to needy and poor families.
B)  provides free accommodation and food to needy families.
C)  is controlled by state governments and does not carry any federal entitlement.
D)  is a federal entitlement program.
E)  is a part of Social Security and collects contributions from employed people.F) C) and D)
G) D) and E)

Question 6

Temporary Assistance for Needy Families and Supplemental Security Income are:​

Accepted Answer

A)  cash transfers for income assistance.
B)  cash transfers for social insurance.
C)  in-kind transfers for income assistance.
D)  in-kind transfers for social insurance.
E)  intended to provide health care for the poor.F) A) and B)
G) A) and C)

Question 7

Welfare data shows that:​

Accepted Answer

A)  there may be unfavorable long-term consequences of welfare benefits.
B)  welfare encourages young women to have children.
C)  children brought up on welfare never remain on welfare as adults.
D)  welfare benefits and other sources of income are directly related.
E)  income-assistance programs increase the supply of labor by 40 percent.F) A) and E)
G) B) and C) A

Question 8

Transfer payments have reduced poverty among the elderly, but poverty among females has not reduced.​

Accepted Answer

A) True 
 B)False

Question 9

Children of female headed-households are five times more likely to live in poverty than other children.​

Accepted Answer

A) True 
 B)False

Question 10

If the official U.S. poverty statistics included the effect of in-kind transfer payments, _____.​

Accepted Answer

A)  the poverty rate would be higher
B)  the poverty rate would be lower
C)  the unemployment rate would be lower
D)  the unemployment rate would be higher
E)  the top 10 percent of the population would be wealthierF) C) and D)
G) C) and E)

Question 11

In the United States, _____.​

Accepted Answer

A)  insurance premiums are deducted from workers' pay to pay for social insurance programs
B)  anyone with children is entitled to receive the benefits of social insurance programs
C)  anyone over 65 is eligible to receive the benefits of social insurance programs
D)  all taxpayers are eligible to receive the benefits of social insurance programs
E)  all poor families with children are eligible to receive the benefits of social insurance programsF) C) and E)
G) C) and D)

Question 12

The largest welfare program in the United States, costing more than all cash and other in-kind transfer programs combined, is:​

Accepted Answer

A)  Social Security.
B)  Medicaid.
C)  Temporary Assistance for Needy Families.
D)  Unemployment insurance.
E)  General Assistance.F) B) and E)
G) C) and E)

Question 13

In the United States, the poverty rate is highest among young families with a head of household under 25.​

Accepted Answer

A) True 
 B)False

Question 14

The lower the unemployment rate, the higher the poverty rate.​

Accepted Answer

A) True 
 B)False

Question 15

When income is distributed perfectly equally in an economy, the Lorenz curve is a 45-degree straight line from the origin.​

Accepted Answer

A) True 
 B)False

Question 16

A major difference between social insurance and income assistance programs is that:​

Accepted Answer

A)  social insurance programs are run by the state governments and income assistance programs are run by the federal government.
B)  funding for social insurance programs comes exclusively from the federal government, whereas income assistance programs are funded both by the state and federal governments.
C)  benefits from social insurance programs are related to a worker's work history, whereas benefits from income assistance programs are not.
D)  social insurance programs are available only to households with children, whereas income assistance programs are available to all citizens above the age of 18 years.
E)  income assistance programs are available only to households without children, whereas income assistance programs are available only to single mothers with children.F) A) and D)
G) B) and D)

Question 17

The problem with allocating income according to productivity is that some people would have difficulty earning income.​

Accepted Answer

A) True 
 B)False

Question 18

Most people on welfare benefit programs in the United States are:​

Accepted Answer

A)  immigrants.
B)  poorly educated and have limited job skills.
C)  not eligible for food stamps, child care, or Medicaid.
D)  employed part-time.
E)  below the age of 16 years.F) A) and D)
G) None of the above

Question 19

The income earned by less-educated workers has decreased primarily because of:​

Accepted Answer

A)  progressive taxation.
B)  immigration.
C)  free international trade.
D)  marriage trends.
E)  affirmative action.F) All of the above
G) B) and C) C

Question 20

Measurement of the official poverty level in the United States:​

Accepted Answer

A)  includes all transfer payments.
B)  excludes all transfers payments.
C)  includes cash transfers but not in-kind transfers.
D)  includes in-kind transfers but not cash transfers.
E)  is always measured in real rather than nominal terms.F) D) and E)
G) A) and C)

Exam 18: Poverty and Redistribution

Analysis of the poverty rates in the United States indicates that:​

Correct AnswerverifiedA

The same households do not necessarily remain rich or poor over time because:​

Correct AnswerverifiedShow Answer

Which of the following would not account for the observed wage differential between African Americans and whites in the United States?​

Correct AnswerverifiedShow Answer

The requirement that firms doing business with the federal government set numerical hiring, promotion, and training goals was meant to:​

Correct AnswerverifiedShow Answer

One feature of the Temporary Assistance for Needy Families (TANF) program is that it:​

Correct AnswerverifiedShow Answer

Temporary Assistance for Needy Families and Supplemental Security Income are:​

Correct AnswerverifiedShow Answer

Welfare data shows that:​

Correct AnswerverifiedA

Transfer payments have reduced poverty among the elderly, but poverty among females has not reduced.​

Correct AnswerverifiedShow Answer

Children of female headed-households are five times more likely to live in poverty than other children.​

Correct AnswerverifiedShow Answer

If the official U.S. poverty statistics included the effect of in-kind transfer payments, _____.​

Correct AnswerverifiedShow Answer

In the United States, _____.​

Correct AnswerverifiedShow Answer

The largest welfare program in the United States, costing more than all cash and other in-kind transfer programs combined, is:​

Correct AnswerverifiedShow Answer

In the United States, the poverty rate is highest among young families with a head of household under 25.​

Correct AnswerverifiedShow Answer

The lower the unemployment rate, the higher the poverty rate.​

Correct AnswerverifiedShow Answer

When income is distributed perfectly equally in an economy, the Lorenz curve is a 45-degree straight line from the origin.​

Correct AnswerverifiedShow Answer

A major difference between social insurance and income assistance programs is that:​

Correct AnswerverifiedShow Answer

The problem with allocating income according to productivity is that some people would have difficulty earning income.​

Correct AnswerverifiedShow Answer

Most people on welfare benefit programs in the United States are:​

Correct AnswerverifiedShow Answer

The income earned by less-educated workers has decreased primarily because of:​

Correct AnswerverifiedC

Measurement of the official poverty level in the United States:​

Correct AnswerverifiedShow Answer

Analysis of the poverty rates in the United States indicates that:

Correct Answer
verified
A

The same households do not necessarily remain rich or poor over time because:

Correct Answer
verified

Which of the following would not account for the observed wage differential between African Americans and whites in the United States?

Correct Answer
verified

The requirement that firms doing business with the federal government set numerical hiring, promotion, and training goals was meant to:

Correct Answer
verified

One feature of the Temporary Assistance for Needy Families (TANF) program is that it:

Correct Answer
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Temporary Assistance for Needy Families and Supplemental Security Income are:

Correct Answer
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Welfare data shows that:

Correct Answer
verified
A

Transfer payments have reduced poverty among the elderly, but poverty among females has not reduced.

Correct Answer
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Children of female headed-households are five times more likely to live in poverty than other children.

Correct Answer
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If the official U.S. poverty statistics included the effect of in-kind transfer payments, _____.

Correct Answer
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In the United States, _____.

Correct Answer
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The largest welfare program in the United States, costing more than all cash and other in-kind transfer programs combined, is:

Correct Answer
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In the United States, the poverty rate is highest among young families with a head of household under 25.

Correct Answer
verified

The lower the unemployment rate, the higher the poverty rate.

Correct Answer
verified

When income is distributed perfectly equally in an economy, the Lorenz curve is a 45-degree straight line from the origin.

Correct Answer
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A major difference between social insurance and income assistance programs is that:

Correct Answer
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The problem with allocating income according to productivity is that some people would have difficulty earning income.

Correct Answer
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Most people on welfare benefit programs in the United States are:

Correct Answer
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The income earned by less-educated workers has decreased primarily because of:

Correct Answer
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C

Measurement of the official poverty level in the United States:

Correct Answer
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