Question 1

"The government should choose policies to maximize the total utility of society." This statement is most closely associated with which political philosophy?

Accepted Answer

A)  liberalism
B)  utilitarianism
C)  libertarianism
D)  welfarismE) C) and D)
F) All of the above

Question 2

Opponents of legislation that proposes to limit the time a family can receive welfare benefits are most likely to argue that time limits are undesirable because

Accepted Answer

A)  the money saved will be diverted to defense spending.
B)  children will become innocent victims if parents are forced off welfare.
C)  there is no evidence to suggest a pattern of welfare dependency.
D)  long periods on welfare erode work skills.E) None of the above
F) B) and C)

Question 3

"The government should punish crimes and enforce voluntary agreements but not redistribute income." This statement is most closely associated with which political philosophy?

Accepted Answer

A)  liberalism
B)  utilitarianism
C)  libertarianism
D)  welfarismE) All of the above
F) C) and D)

Question 4

Which of the following statements is not correct?

Accepted Answer

A)  The biggest explanation for international child labor is poverty.
B)  Critics of the welfare system argue that it breaks up families.
C)  One of the problems with measuring income inequality is valuing in-kind transfers.
D)  Utilitarians believe that the government should punish crimes but should not redistribute income.E) B) and D)
F) All of the above

Question 5

Since the early 1970s,average incomes have

Accepted Answer

A)  increased, which has reduced the poverty rate.
B)  increased, yet the poverty rate has not decreased appreciably.
C)  decreased, while the poverty rate has remained unchanged.
D)  remained relatively unchanged, while the poverty rate has decreased.E) A) and B)
F) A) and C)

Question 6

Raising total utility is the prime objective of which political philosophy?

Accepted Answer

A)  utilitarianism
B)  liberalism
C)  libertarianism
D)  None of the above is correct.E) A) and B)
F) All of the above

Question 7

In 2003,what percentage of U.S.families had income levels below $98,200?

Accepted Answer

A)  5 percent
B)  20 percent
C)  80 percent
D)  95 percentE) A) and C)
F) A) and D)

Question 8

Minimum wage laws

Accepted Answer

A)  benefit all unskilled workers.
B)  create unemployment, but if demand is relatively elastic, the unemployment effects will be minor.
C)  may help the nonpoor, such as teenagers from wealthy families.
D)  reduce poverty by reducing unemployment.E) B) and D)
F) B) and C)

Question 9

In 2003,the poverty rate in the United States was approximately

Accepted Answer

A)  2.5 percent.
B)  12.5 percent.
C)  20 percent.
D)  50 percent.E) C) and D)
F) A) and D)

Question 10

Fewer than three percent of families are poor for eight or more years.

Accepted Answer

A) True 
 B)False

Question 11

Economists refer to the regular pattern of income variation over a person's lifetime as the

Accepted Answer

A)  life cycle effect.
B)  life pattern effect.
C)  cyclical redundancy effect.
D)  periodic cycle effect.E) B) and D)
F) All of the above

Question 12

The poverty line in the country of Abbyville is $15,000.The distribution of income for Abbyville is as follows: 
The poverty rate in Abbyville is

Accepted Answer

A)  12 percent.
B)  32 percent.
C)  50 percent.
D)  68 percent.E) A) and B)
F) A) and C)

Question 13

Figure 20-1
Number of Poor
 
-Refer to Figure 20-1.Between 1965 and 2001,during recessions (the shaded bars) the number of individuals in poverty has

Accepted Answer

A)  increased.
B)  decrease.
C)  not changed.
D)  decreased and then increased.E) A) and D)
F) A) and C)

Question 14

Which of the following statements is correct?

Accepted Answer

A)  The poverty line is a relative standard.
B)  Economic growth that raises all incomes will decrease the number of families in poverty.
C)  Increasing income inequality reduces poverty.
D)  Economic growth, by definition, affects all families equally.E) None of the above
F) B) and D)

Question 15

Medicaid and food stamps are

Accepted Answer

A)  available only to the elderly.
B)  forms of in-kind assistance.
C)  forms of cash assistance.
D)  transfer payments.E) None of the above
F) B) and D)

Question 16

When incentives to earn income are distorted by income redistribution programs,

Accepted Answer

A)  losses can exceed potential gains from greater equality of income.
B)  total income in an economy can fall.
C)  total utility in society can fall.
D)  All of the above are correct.E) A) and B)
F) B) and D)

Question 17

Government vouchers to purchase food,also known as food stamps,are an example of

Accepted Answer

A)  an in-kind transfer.
B)  life-cycle income.
C)  a negative income tax.
D)  the earned income tax credit.E) B) and C)
F) A) and B)

Question 18

"An extra dollar of income gives more additional satisfaction to a poor person than to a rich person." This is an important assumption of which political philosophy?

Accepted Answer

A)  utilitarianism
B)  liberalism
C)  libertarianism
D)  All of the above are correct.E) A) and B)
F) B) and D)

Question 19

Table 20-2
Poverty Thresholds in 2002, by Size of Family and Number of Related Children Under 18 Years
[Dollars]
  
Source: U. S. Bureau of the Census, Current Population Survey.
-Refer to Table 20-2.What is the poverty line for a family of eight with two children?

Accepted Answer

A)  $14,494
B)  $32,812
C)  $33,121
D)  $34,780E) B) and C)
F) C) and D)

Question 20

The country that has the highest degree of income inequality is

Accepted Answer

A)  the United States.
B)  Germany.
C)  Russia.
D)  South Africa.E) A) and B)
F) All of the above

Exam 20: Income Inequality and Poverty

Which of the following statements is not correct?

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When incentives to earn income are distorted by income redistribution programs,

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Medicaid and food stamps are

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The country that has the highest degree of income inequality is

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Figure 20-1 Number of Poor -Refer to Figure 20-1.Between 1965 and 2001,during recessions (the shaded bars) the number of individuals in poverty has

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Table 20-2 Poverty Thresholds in 2002, by Size of Family and Number of Related Children Under 18 Years [Dollars] Source: U. S. Bureau of the Census, Current Population Survey. -Refer to Table 20-2.What is the poverty line for a family of eight with two children?

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In 2003,what percentage of U.S.families had income levels below $98,200?

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Government vouchers to purchase food,also known as food stamps,are an example of

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"An extra dollar of income gives more additional satisfaction to a poor person than to a rich person." This is an important assumption of which political philosophy?

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Since the early 1970s,average incomes have

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Opponents of legislation that proposes to limit the time a family can receive welfare benefits are most likely to argue that time limits are undesirable because

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"The government should choose policies to maximize the total utility of society." This statement is most closely associated with which political philosophy?

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In 2003,the poverty rate in the United States was approximately

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Minimum wage laws

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Raising total utility is the prime objective of which political philosophy?

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Fewer than three percent of families are poor for eight or more years.

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Which of the following statements is correct?

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The poverty line in the country of Abbyville is $15,000.The distribution of income for Abbyville is as follows: The poverty rate in Abbyville is

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Economists refer to the regular pattern of income variation over a person's lifetime as the

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"The government should punish crimes and enforce voluntary agreements but not redistribute income." This statement is most closely associated with which political philosophy?

Correct AnswerverifiedShow Answer

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