Question 1

The TANF program is designed to

Accepted Answer

A)  increase the minimum wage.
B)  shift people from welfare to employment.
C)  provide medical insurance to poverty-level workers.
D)  provide income to the blind and disabled.E) None of the above
F) All of the above

Question 2

The crowding of certain ethnic or racial groups into specific occupations results in

Accepted Answer

A)  lower wages and a less efficient allocation of resources.
B)  lower wages but a more efficient allocation of resources.
C)  lower wages but no effect on the efficient allocation of resources.
D)  higher wages and a more efficient allocation of labor resources.E) All of the above
F) B) and C)

Question 3

The crowding model of occupational discrimination suggests that occupational segregation results in

Accepted Answer

A)  a lower domestic output than would otherwise be the case.
B)  higher levels of total employment than would otherwise be the case.
C)  higher interest rates in the private sector than would otherwise be the case.
D)  a higher rate of inflation than would otherwise be the case.E) All of the above
F) A) and B)

Question 4

The crowding of women, African Americans, and certain ethnic groups into less-desirable, lower-paying occupations is

Accepted Answer

A)  employment discrimination.
B)  human capital discrimination.
C)  statistical discrimination.
D)  occupational segregation.E) C) and D)
F) A) and D)

Question 5

Which of the following helps explain growing income inequality in the United States in recent years?

Accepted Answer

A)  reduced immigration
B)  increased demand for highly skilled workers
C)  the falling labor force participation rate of women
D)  increased power of unionsE) B) and C)
F) A) and D)

Question 6

Unemployment compensation is financed by taxes levied on employers.

Accepted Answer

A) True 
 B)False

Question 7

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) A) and B)
F) A) and C)

Question 8

Which of the following would be considered part of wealth?

Accepted Answer

A)  wages and salaries
B)  rental payments
C)  profits from a corporation
D)  corporate stock holdingsE) All of the above
F) A) and B)

Question 9

An example of a social insurance program is ____________, whereas an example of a public assistance program is _______.

Accepted Answer

A)  Temporary Assistance for Needy Families; unemployment compensation
B)  Supplemental Security Income; unemployment compensation
C)  Social Security; Supplemental Nutrition Assistance Program
D)  Medicaid; MedicareE) B) and C)
F) B) and D)

Question 10

What is the difference between social insurance and public assistance in income maintenance programs? What are examples of each type of government program?

Accepted Answer

Social insurance programs are programs t...

Question 11

The earned-income tax credit (EITC) is, in essence,

Accepted Answer

A)  a tax credit for corporate contributions to charity.
B)  a tax break for businesses that invest in community programs.
C)  an income payment to those individuals who are not able to work.
D)  a wage subsidy for low-income workers to offset Social Security taxes.E) C) and D)
F) A) and B)

Question 12

The debate over income distribution focuses on the trade-off between

Accepted Answer

A)  unemployment and economic freedom.
B)  equality and economic freedom.
C)  economic efficiency and equality.
D)  unemployment and economic growth.E) A) and B)
F) All of the above

Question 13

Since its inception in 1996, the Temporary Assistance for Needy Families (TANF) program

Accepted Answer

A)  increased, rather than reduced, the number of people on welfare.
B)  reduced the number of people on welfare significantly until the recession of 2007-08 swelled the number of recipients.
C)  aided the poor by automatically increasing welfare payments when inflation occurs.
D)  greatly increased the unemployment rate.E) A) and B)
F) All of the above

Question 14

What were four major provisions of the Temporary Assistance to Needy Families (TANF)reform of the welfare system?

Accepted Answer

The four major provisions of the TANF pr...

Question 15

Who are the poor in the United States? How many people and what groups are most affected by poverty?

Accepted Answer

The poor are of all races and ethnicitie...

Question 16

Which of the following would move the Lorenz curve closer to the diagonal?

Accepted Answer

A)  a 20 percent boost in Social Security retirement benefits
B)  increasing payroll taxes
C)  reducing the progressiveness of the federal personal income tax
D)  eliminating the TANF programE) None of the above
F) A) and B)

Question 17

The necessity to maintain incentives to work and incentives to produce output would be a point made by an individual making the case for

Accepted Answer

A)  income equality.
B)  income inequality.
C)  maximizing total utility.
D)  maximizing marginal utility.E) A) and B)
F) All of the above

Question 18

When taxes and transfer payments are taken into account, the distribution of income in the United States

Accepted Answer

A)  is unchanged.
B)  is less equally distributed.
C)  is more equally distributed.
D)  becomes more beneficial for the wealthy.E) B) and C)
F) None of the above

Question 19

The closer the Lorenz curve is to the diagonal, the greater is the degree of income inequality.

Accepted Answer

A) True 
 B)False

Question 20

The TANF program

Accepted Answer

A)  is a form of social insurance.
B)  has been found to be unconstitutional by the Supreme Court.
C)  limits total lifetime welfare benefits to 5 years and requires able-bodied adults to work after receiving benefits for 2 years.
D)  perpetuates the so-called culture of poverty.E) None of the above
F) All of the above

Exam 23: Income Inequality, Poverty, and Discrimination

An example of a social insurance program is ____________, whereas an example of a public assistance program is _______.

Correct AnswerverifiedShow Answer

Since its inception in 1996, the Temporary Assistance for Needy Families (TANF) program

Correct AnswerverifiedShow Answer

The debate over income distribution focuses on the trade-off between

Correct AnswerverifiedShow Answer

Which of the following would move the Lorenz curve closer to the diagonal?

Correct AnswerverifiedShow Answer

The necessity to maintain incentives to work and incentives to produce output would be a point made by an individual making the case for

Correct AnswerverifiedShow Answer

The crowding model of occupational discrimination suggests that occupational segregation results in

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The closer the Lorenz curve is to the diagonal, the greater is the degree of income inequality.

Correct AnswerverifiedShow Answer

The TANF program is designed to

Correct AnswerverifiedShow Answer

Which of the following helps explain growing income inequality in the United States in recent years?

Correct AnswerverifiedShow Answer

What is the difference between social insurance and public assistance in income maintenance programs? What are examples of each type of government program?

Correct AnswerverifiedSocial insurance programs are programs t...View AnswerShow Answer

Which of the following would be considered part of wealth?

Correct AnswerverifiedShow Answer

Who are the poor in the United States? How many people and what groups are most affected by poverty?

Correct AnswerverifiedThe poor are of all races and ethnicitie...View AnswerShow Answer

What were four major provisions of the Temporary Assistance to Needy Families (TANF)reform of the welfare system?

Correct AnswerverifiedThe four major provisions of the TANF pr...View AnswerShow Answer

The crowding of certain ethnic or racial groups into specific occupations results in

Correct AnswerverifiedShow Answer

The TANF program

Correct AnswerverifiedShow Answer

The earned-income tax credit (EITC) is, in essence,

Correct AnswerverifiedShow Answer

Unemployment compensation is financed by taxes levied on employers.

Correct AnswerverifiedShow Answer

The crowding of women, African Americans, and certain ethnic groups into less-desirable, lower-paying occupations is

Correct AnswerverifiedShow Answer

When taxes and transfer payments are taken into account, the distribution of income in the United States

Correct AnswerverifiedShow Answer

An example of a social insurance program is ______, whereas an example of a public assistance program is _.

Correct Answer
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Social insurance programs are programs t...
View Answer

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The poor are of all races and ethnicitie...
View Answer

Correct Answer
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The four major provisions of the TANF pr...
View Answer

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