Question 1

About what percentage of the poor are children?

Accepted Answer

A)  13 percent
B)  24 percent
C)  36 percent
D)  60 percentE) None of the above
F) A) and B)

Question 2

Which of the following is not a source of income inequality?

Accepted Answer

A)  Inherited wealth
B)  Differences in ability
C)  Negative income taxes
D)  LuckE) None of the above
F) A) and D)

Question 3

If two individuals have identical schooling, their incomes will be equal.

Accepted Answer

A) True 
 B)False

Question 4

The basic idea behind a negative income tax is to

Accepted Answer

A)  help local government agencies deliver more services to the poor.
B)  increase the in-kind income of the poor.
C)  help the poor get job skills.
D)  help the poor without destroying incentives to work.E) All of the above
F) C) and D)

Question 5

Compared to most other industrialized nations, the United States has greater income inequality.

Accepted Answer

A) True 
 B)False

Question 6

Explain why greater equality is inevitably gained at the expense of efficiency.

Accepted Answer

Achieving greater equality requires redu...

Question 7

Who would receive payments from the government under a negative income tax system?

Accepted Answer

A)  Everyone
B)  Only people with no earnings
C)  Only people with incomes below a certain level
D)  Only people with incomes above a certain levelE) C) and D)
F) All of the above

Question 8

In the United States, the distribution of income after the income tax is ____ the distribution of income before the income tax.

Accepted Answer

A)  slightly less equal than
B)  about as equal as
C)  slightly more equal than
D)  a great deal more equal thanE) B) and D)
F) All of the above

Question 9

The distribution of income in the United States has grown substantially more unequal since about

Accepted Answer

A)  1970
B)  1980
C)  1990
D)  2000E) A) and C)
F) None of the above

Question 10

If you fall short of a certain minimum standard of living, you are poor; once you pass this standard, you are no longer poor.This refers to the ____ definition of poverty.

Accepted Answer

A)  average
B)  absolute
C)  relative
D)  thresholdE) A) and C)
F) B) and C)

Question 11

Which of the following is not a policy to combat poverty?

Accepted Answer

A)  TANF
B)  Supplemental Nutrition Assistance Program
C)  Earned income tax credit
D)  Mortgage interest deductionsE) A) and D)
F) C) and D)

Question 12

TANF compels welfare recipients to go to work after a period of two years.

Accepted Answer

A) True 
 B)False

Question 13

The public assistance program that economists believe can promote economic equality at the least cost in economic efficiency is

Accepted Answer

A)  Aid to Families with Dependent Children (AFD
C)  .
B)  a negative income tax (NIT) .
C)  food stamps.
D)  Medicaid.E) B) and C)
F) A) and B)

Question 14

Discrimination can come from many groups of people, including employers and fellow employees.

Accepted Answer

A) True 
 B)False

Question 15

If the United States is to reduce poverty by using a negative income tax, the guaranteed income should be

Accepted Answer

A)  two times the tax rate.
B)  close to the poverty line.
C)  close to the median income of all families.
D)  above the poverty line.E) B) and C)
F) All of the above

Question 16

Employers near military bases are aware that wives generally accompany their servicemen husbands when they are transferred.When presented with nonservice-wife applicants and wives of servicemen, they hire the nonservice-wife applicants.This is an example of

Accepted Answer

A)  gender discrimination.
B)  statistical discrimination.
C)  economic discrimination.
D)  prejudicial discrimination.E) A) and B)
F) A) and C)

Question 17

The concept of absolute poverty states that anyone who falls too far behind the average income should be considered poor.

Accepted Answer

A) True 
 B)False

Question 18

Programs that reduce the incentive to work make income redistribution inefficient.

Accepted Answer

A) True 
 B)False

Question 19

Affirmative action programs are intended to combat

Accepted Answer

A)  poverty.
B)  economic inequality.
C)  discriminatory practices by employers.
D)  "comparable worth" systems of compensation.E) C) and D)
F) None of the above

Question 20

The highest-income fifth of the U.S.population earns more than 50 percent of all income.

Accepted Answer

A) True 
 B)False

Exam 20: Poverty, Inequality, and Discrimination

Explain why greater equality is inevitably gained at the expense of efficiency.

Correct AnswerverifiedAchieving greater equality requires redu...View AnswerShow Answer

About what percentage of the poor are children?

Correct AnswerverifiedShow Answer

The public assistance program that economists believe can promote economic equality at the least cost in economic efficiency is

Correct AnswerverifiedShow Answer

Which of the following is not a source of income inequality?

Correct AnswerverifiedShow Answer

Who would receive payments from the government under a negative income tax system?

Correct AnswerverifiedShow Answer

Discrimination can come from many groups of people, including employers and fellow employees.

Correct AnswerverifiedShow Answer

Which of the following is not a policy to combat poverty?

Correct AnswerverifiedShow Answer

TANF compels welfare recipients to go to work after a period of two years.

Correct AnswerverifiedShow Answer

The distribution of income in the United States has grown substantially more unequal since about

Correct AnswerverifiedShow Answer

The highest-income fifth of the U.S.population earns more than 50 percent of all income.

Correct AnswerverifiedShow Answer

Employers near military bases are aware that wives generally accompany their servicemen husbands when they are transferred.When presented with nonservice-wife applicants and wives of servicemen, they hire the nonservice-wife applicants.This is an example of

Correct AnswerverifiedShow Answer

If the United States is to reduce poverty by using a negative income tax, the guaranteed income should be

Correct AnswerverifiedShow Answer

The basic idea behind a negative income tax is to

Correct AnswerverifiedShow Answer

If two individuals have identical schooling, their incomes will be equal.

Correct AnswerverifiedShow Answer

Programs that reduce the incentive to work make income redistribution inefficient.

Correct AnswerverifiedShow Answer

Compared to most other industrialized nations, the United States has greater income inequality.

Correct AnswerverifiedShow Answer

Affirmative action programs are intended to combat

Correct AnswerverifiedShow Answer

The concept of absolute poverty states that anyone who falls too far behind the average income should be considered poor.

Correct AnswerverifiedShow Answer

In the United States, the distribution of income after the income tax is ____ the distribution of income before the income tax.

Correct AnswerverifiedShow Answer

If you fall short of a certain minimum standard of living, you are poor; once you pass this standard, you are no longer poor.This refers to the ____ definition of poverty.

Correct AnswerverifiedShow Answer

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Achieving greater equality requires redu...
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