Question 1

The goal of programs such as government-subsidized housing,food stamps,and Medicaid are to:

Accepted Answer

A)   spur economic growth.
B)   redistribute wealth from the rich to the poor.
C)   reduce the time people spend in transient poverty.
D)   None of these is true.E) C) and D)
F) B) and C)

Question 2

The relative poverty line defines poverty:

Accepted Answer

A)   in relation to the income of the rest of the population.
B)   based on the expenditure on food relative to total income.
C)   as the price of basic food, clothing, shelter and utilities, and adjusts for geographic differences in the cost of living.
D)   None of these is true.E) A) and C)
F) A) and B)

Question 3

U.S.households headed by __________ are the most likely to be poor.

Accepted Answer

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

Question 4

The percent of population that experiences transient poverty at some point in their lives is:

Accepted Answer

A)   less than 10 percent.
B)   approximately 12 percent.
C)   more than 25 percent.
D)   approximately 40 percent.E) C) and D)
F) B) and D)

Question 5

Which of the following types of countries has experienced decreasing inequality in recent decades?

Accepted Answer

A)   Rich countries
B)   Countries with high economic growth
C)   Countries with low economic growth
D)   None of these has experienced decreasing inequality.E) A) and B)
F) A) and C)

Question 6

The basics of the welfare state in the United States started as part of:

Accepted Answer

A)   reparations after WWI in the late 1910s.
B)   the Bretton Woods plan after WWII in the 1940s.
C)   the New Deal legislation in the 1930s.
D)   the Great Recession Recovery and Aid Acts in the 2000s.E) C) and D)
F) All of the above

Question 7

The region with the highest percentage of people who live on less than $1.90 a day is:

Accepted Answer

A)   sub-Saharan Africa.
B)   South Asia.
C)   China.
D)   None of these is true.E) C) and D)
F) All of the above

Question 8

Aid to Families with Dependent Children was a government program with the goal of:

Accepted Answer

A)   redistribution.
B)   social insurance.
C)   economic growth.
D)   None of these is true.E) C) and D)
F) B) and C)

Question 9

In recent decades,countries with high economic growth have experienced _______ inequality,and those with low rates of growth have experienced __________ inequality.

Accepted Answer

A)   increasing; decreasing
B)   increasing; increasing
C)   decreasing; increasing
D)   decreasing; decreasingE) All of the above
F) B) and D)

Question 10

Research suggests that about ______ percent of people living under the poverty line in any given year are chronically poor.

Accepted Answer

A)   3
B)   8
C)   13
D)   38E) A) and B)
F) None of the above

Question 11

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) C) and D)
F) A) and C)

Question 12

Temporary Assistance to Needy Families:

Accepted Answer

A)   is an "unconditional" cash-transfer program
B)   is a conditional cash transfer program.
C)   is more redistributive in nature than social insurance.
D)   is provided long term to help people in chronic poverty.E) A) and B)
F) B) and C)

Question 13

By monitoring financial diaries of several of the world's poorest families,economists found that a challenge facing the poor was:

Accepted Answer

A)   they did save any money to pay down debts.
B)   their income fluctuated a lot, in addition to being low.
C)   they often did not diversify their savings and had "their eggs all in one basket".
D)   All of these are true.E) A) and D)
F) All of the above

Question 14

Some say in-kind transfers are inefficient because:

Accepted Answer

A)   cash transfers allow utility-maximizing individuals to make the best decisions about items they need.
B)   some of them get traded in a secondary market, implying inefficient distribution.
C)   it's not what most people want.
D)   everyone always prefers cash to goods and services.E) A) and B)
F) A) and C)

Question 15

An effective program used to fight transient poverty is:

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) None of the above

Question 16

You acquire human capital by:

Accepted Answer

A)   getting an education.
B)   investing in health care.
C)   gaining experience in jobs.
D)   All of these are true.E) C) and D)
F) A) and B)

Question 17

The absolute poverty line looks at _____________,and the relative poverty line captures ____________

Accepted Answer

A)   who cannot afford the basic necessities; what people can afford compared to those around them.
B)   what people can afford compared to those around them; who cannot afford the basic necessities.
C)   the percentage of the population that falls within the lowest quartile of income earners; the percentage of the population that earns 40 percent less than the median income.
D)   the percentage of the population that falls within the lowest quartile of income earners; what people can afford compared to those around them.E) A) and C)
F) All of the above

Question 18

In situations where businesses who choose to discriminate because they are prejudiced are few in an industry,discrimination:

Accepted Answer

A)   will be eliminated by the competitive market.
B)   will persist because customers will not give them patronage.
C)   will persist in an efficient market.
D)   None of these is true.E) None of the above
F) C) and D)

Question 19

Over the last 50 years,the poor have:

Accepted Answer

A)   become richer at a slower rate than the rich, and so inequality has grown.
B)   become richer at a slower rate than the rich, and so inequality has decreased.
C)   become richer at the same rate as the rich, and so inequality has stayed the same.
D)   become poorer, while the rich have become richer, and so inequality has grown.E) B) and C)
F) A) and D)

Question 20

A credit constraint is:

Accepted Answer

A)   the inability to get a loan even though a person expects to be able to repay the loan plus interest.
B)   the inability to repay a loan even though a person has acceptable credit history.
C)   the ability to take on more loans than one can repay.
D)   the maximum amount of load one is entitled to take.E) A) and B)
F) B) and D)

Exam 21: Poverty, Inequality, and Discrimination

By monitoring financial diaries of several of the world's poorest families,economists found that a challenge facing the poor was:

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In situations where businesses who choose to discriminate because they are prejudiced are few in an industry,discrimination:

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The percent of population that experiences transient poverty at some point in their lives is:

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Research suggests that about ______ percent of people living under the poverty line in any given year are chronically poor.

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The relative poverty line defines poverty:

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Which of the following types of countries has experienced decreasing inequality in recent decades?

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The absolute poverty line looks at _____________,and the relative poverty line captures ____________

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The basics of the welfare state in the United States started as part of:

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A credit constraint is:

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Some say in-kind transfers are inefficient because:

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In recent decades,countries with high economic growth have experienced _______ inequality,and those with low rates of growth have experienced __________ inequality.

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The region with the highest percentage of people who live on less than $1.90 a day is:

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An effective program used to fight transient poverty is:

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Temporary Assistance to Needy Families:

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You acquire human capital by:

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The goal of programs such as government-subsidized housing,food stamps,and Medicaid are to:

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Aid to Families with Dependent Children was a government program with the goal of:

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The global pattern of inequality has:

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Over the last 50 years,the poor have:

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U.S.households headed by __________ are the most likely to be poor.

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The absolute poverty line looks at _,and the relative poverty line captures

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In recent decades,countries with high economic growth have experienced _ inequality,and those with low rates of growth have experienced ____ inequality.

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