Question 1

Which of the following countries has lower income mobility than the United States?

Accepted Answer

A)  India
B)  Germany
C)  Vietnam
D)  ChinaE) None of the above
F) A) and B)

Question 2

The PPP index describes the overall:

Accepted Answer

A)  inequality present in one country compared to another.
B)  difference in poverty levels between countries.
C)  difference in prices of goods between countries.
D)  None of these are true.E) B) and D)
F) A) and B)

Question 3

When businesses discriminate in response to the preferences of consumers, the discrimination:

Accepted Answer

A)  is consistent with efficient markets.
B)  will be eliminated by the market.
C)  will not persist even though it's what the customers want.
D)  is not consistent with efficient markets.E) B) and D)
F) A) and B)

Question 4

Which of the following U.S. programs is an in-kind transfer?

Accepted Answer

A)  Supplemental Nutrition Assistance Program (SNAP) 
B)  the Earned Income Tax Credit (EIT
C)  
C)  Aid to Families with Dependent Children (AFD
C)  
D)  Temporary Assistance to Needy Families (TANF) E) C) and D)
F) A) and C)

Question 5

The most common international poverty measure is the:

Accepted Answer

A)  number of people living on less than $1.90 per day.
B)  number of people living on less than $5 per day.
C)  absolute poverty line, as defined by the U.S. Census Bureau.
D)  poorest one percent of income earners within a given country.E) None of the above
F) All of the above

Question 6

The global pattern of inequality has:

Accepted Answer

A)  remained surprisingly unchanged for the past several decades.
B)  changed significantly after each World War.
C)  been changing in recent decades.
D)  not changed since the Great Depression redefined inequality for the world.E) A) and B)
F) None of the above

Question 7

In the United States, the top 20 percent of income earners earn:

Accepted Answer

A)  approximately 20 percent of total income.
B)  over 70 percent of total income.
C)  approximately 50 percent of total income.
D)  less than 20 percent of total income.E) B) and C)
F) C) and D)

Question 8

Which of the following programs can be used to fight transient poverty?

Accepted Answer

A)  Unemployment insurance
B)  Health insurance
C)  Job training
D)  All of these are effective at fighting transient poverty.E) B) and C)
F) B) and D)

Question 9

Median income is the:

Accepted Answer

A)  level earned by the household exactly in the middle of the national income distribution.
B)  total national income divided by the total population.
C)  total national income divided by the total number of households.
D)  halfway point of the top quintile level of income.E) A) and C)
F) All of the above

Question 10

Progressive taxation serves which of the following goals of economic welfare policy?

Accepted Answer

A)  Social insurance
B)  Economic growth
C)  Efficiency maximization
D)  Redistribution of wealthE) All of the above
F) None of the above

Question 11

Social insurance programs are designed to:

Accepted Answer

A)  keep those in chronic poverty fed, clothed, and housed.
B)  aid communities that become impoverished.
C)  protect against the temporary hard times that can lead to transient poverty.
D)  All of these are true.E) A) and D)
F) All of the above

Question 12

Over the last few decades, the poverty rate in the U.S. has:

Accepted Answer

A)  increased.
B)  decreased slightly.
C)  changed little.
D)  decreased dramatically.E) B) and C)
F) None of the above

Question 13

To understand how poverty, inequality, and discrimination affect an economy, _______ analysis is used. To determine whether a government should try to reduce inequality in the name of social justice, _______ analysis is used.

Accepted Answer

A)  positive; objective
B)  subjective; normative
C)  normative; positive
D)  positive; normativeE) C) and D)
F) B) and C)

Question 14

An absolute poverty line is usually based on:

Accepted Answer

A)  the cost of certain essential goods.
B)  a certain percentage below the average income in a society.
C)  the lowest quartile of income earners in a society.
D)  the lowest 1 percent of all income earners in a society.E) All of the above
F) A) and B)

Question 15

The term "welfare state" describes the idea that:

Accepted Answer

A)  government has a responsibility to promote the economic well-being of its citizens.
B)  some areas suffer a disproportionate amount of chronic poverty.
C)  some areas suffer from stagnant economic growth.
D)  a country has become dependent on welfare benefits.E) A) and D)
F) C) and D)

Question 16

Over the last 50 years, poverty has been _______ and inequality has been _______.

Accepted Answer

A)  falling; rising
B)  falling; falling
C)  rising; rising
D)  rising; fallingE) A) and D)
F) None of the above

Question 17

Today, black and Hispanic Americans have poverty rates _______ as high as white Americans.

Accepted Answer

A)  three times
B)  twice
C)  half
D)  four timesE) All of the above
F) B) and C)

Question 18

Over the last century, the United States has had _______ absolute mobility and _______ relative mobility.

Accepted Answer

A)  low; even lower
B)  low; high
C)  high; low
D)  high; even higherE) C) and D)
F) None of the above

Question 19

Programs such as unemployment insurance, disability or health insurance, and job training can be effective in fighting:

Accepted Answer

A)  both transient and chronic poverty.
B)  transient poverty, but not chronic poverty.
C)  chronic poverty, but not transient poverty.
D)  unemployment, but not poverty.E) B) and D)
F) A) and C)

Question 20

U.S. households headed by _______ are especially likely to be poor.

Accepted Answer

A)  Hispanic males
B)  those under age 18
C)  single males
D)  single womenE) B) and C)
F) B) and D)

Exam 21: Poverty, Inequality, and Discrimination

Which of the following U.S. programs is an in-kind transfer?

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U.S. households headed by _______ are especially likely to be poor.

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Which of the following countries has lower income mobility than the United States?

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The term "welfare state" describes the idea that:

Correct AnswerverifiedShow Answer

Progressive taxation serves which of the following goals of economic welfare policy?

Correct AnswerverifiedShow Answer

When businesses discriminate in response to the preferences of consumers, the discrimination:

Correct AnswerverifiedShow Answer

An absolute poverty line is usually based on:

Correct AnswerverifiedShow Answer

The global pattern of inequality has:

Correct AnswerverifiedShow Answer

The most common international poverty measure is the:

Correct AnswerverifiedShow Answer

In the United States, the top 20 percent of income earners earn:

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The PPP index describes the overall:

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Over the last few decades, the poverty rate in the U.S. has:

Correct AnswerverifiedShow Answer

Which of the following programs can be used to fight transient poverty?

Correct AnswerverifiedShow Answer

To understand how poverty, inequality, and discrimination affect an economy, _______ analysis is used. To determine whether a government should try to reduce inequality in the name of social justice, _______ analysis is used.

Correct AnswerverifiedShow Answer

Over the last 50 years, poverty has been _______ and inequality has been _______.

Correct AnswerverifiedShow Answer

Social insurance programs are designed to:

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Over the last century, the United States has had _______ absolute mobility and _______ relative mobility.

Correct AnswerverifiedShow Answer

Programs such as unemployment insurance, disability or health insurance, and job training can be effective in fighting:

Correct AnswerverifiedShow Answer

Today, black and Hispanic Americans have poverty rates _______ as high as white Americans.

Correct AnswerverifiedShow Answer

Median income is the:

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To understand how poverty, inequality, and discrimination affect an economy, _ analysis is used. To determine whether a government should try to reduce inequality in the name of social justice, _ analysis is used.

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Over the last 50 years, poverty has been _ and inequality has been _.

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Over the last century, the United States has had _ absolute mobility and _ relative mobility.

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