Question 1

Which of the following statements is correct?

Accepted Answer

A)   The United States has a more equal distribution of income than other developed countries such as Japan and Germany.
B)   The statement "a rising tide lifts all boats" illustrates how economic growth reduces the number of people with income levels below the poverty line.
C)   The economic life cycle explains why people base spending decisions on transitory income.
D)   The United States has more income inequality than developing countries, including Mexico and Brazil.E) All of the above
F) None of the above

Question 2

Table 20-13
Distribution of Income in Imagination 
-Refer to Table 20-13. If the poverty line in Imagination is $18,000, what is the poverty rate?

Accepted Answer

The answer of Table 20-13
Distribution of Income in Imagination 
-Refer...

Question 3

The income level below which families are said to be poor is known as the

Accepted Answer

A)   income maintenance threshold.
B)   poverty line.
C)   bottom quintile of the income distribution.
D)   minimum wage.E) B) and C)
F) A) and B)

Question 4

Table 20-11
Poverty Thresholds in 2011, 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 20-11. What is the poverty line for a family with one 35-year-old adult and one child?

Accepted Answer

A)   $11,702
B)   $15,446
C)   $15,504
D)   $18,106E) B) and C)
F) A) and D)

Question 5

Table 20-15
Income Inequality in 2010 in the United States by Race
The values in the table reflect the percentages of pre-tax-and-transfer income.  Source: US Census Bureau
-Refer to Table 20-15. In percentage point terms, how much more did the top 5% of the Asian population earn than it would have if income were distributed equally?

Accepted Answer

The answer of Table 20-15
Income Inequality in 2010 in the...

Question 6

Table 20-11
Poverty Thresholds in 2011, 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 20-11. What is the poverty line for a family of eight with two children?

Accepted Answer

A)   $18,123
B)   $36,463
C)   $41,027
D)   $43,487E) All of the above
F) B) and C)

Question 7

A tax provision that works much like a negative income tax is the

Accepted Answer

A)   Earned Income Tax Credit (EIT
C)  .
B)   Temporary Assistance for Needy Families (TANF) .
C)   deduction for charitable contributions.
D)   mortgage interest rate deduction.E) C) and D)
F) A) and B)

Question 8

The 2011 U.S. distribution of income shows that the top 5 percent of families earn approximately how much income per year?

Accepted Answer

A)   $170,000 and over
B)   $205,000 and over
C)   $250,000 and over
D)   $325,000 and overE) B) and C)
F) B) and D)

Question 9

The poverty line in the country of Dismal is $20,000. The distribution of income for Dismal is as follows: Number of Families Income   1,000 less than $10,000
2,000 between $10,000 and $20,000
2,000 between $20,000 and $30,000
800 between $30,000 and $40,000
200 over $40,000  The poverty rate in Dismal is

Accepted Answer

A)   16.7 percent.
B)   33.3 percent.
C)   50 percent.
D)   83.3 percent.E) A) and D)
F) A) and B)

Question 10

Explain how a "leaky bucket" can be used to illustrate the utilitarian argument that governments should not attempt to completely equalize individual incomes.

Accepted Answer

Utilitarians reject complete equalizatio...

Question 11

"The government should choose policies deemed to be just, as evaluated by an impartial observer behind a 'veil of ignorance.'" This statement is most closely associated with which political philosophy?

Accepted Answer

A)   liberalism
B)   utilitarianism
C)   libertarianism
D)   welfarismE) A) and B)
F) C) and D)

Question 12

In the United States from 1935 to 2011 the share of total income earned by the bottom fifth of income earners rose and then fell.

Accepted Answer

A) True 
 B)False

Question 13

According to libertarians, the government should redistribute income from rich individuals to poor individuals to achieve a more equal distribution of income.

Accepted Answer

A) True 
 B)False

Question 14

Explain what is meant by "in-kind transfer" programs. Briefly outline the advantages and disadvantages of an in-kind transfer program.

Accepted Answer

An in-kind transfer program distributes ...

Question 15

If the government decided that each family needs a minimum income of $25,000 and promised to make up the difference between whatever a family earned and $25,000, which of the following is correct?

Accepted Answer

A)   The government is effectively taxing every dollar earned up to $25,000 at a rate of 100%.
B)   This program would reduce the incentive to work to earn any wage up to $25,000.
C)   If workers are discouraged from working due to this program, they will miss any on-the-job training that would have otherwise occurred, limiting their ability to improve their skills.
D)   All of the above are correct.E) B) and C)
F) A) and D)

Question 16

Figure 20-5 
-Refer to Figure 20-5. If the government imposes a minimum wage above Wo, it is likely to

Accepted Answer

A)   increase employment to a level above Qo.
B)   reduce employment to a level below Qo.
C)   provide more income to the working poor than they collectively received before the minimum wage was set.
D)   have no effect on employment.E) B) and D)
F) A) and B)

Question 17

Figure 20-3 
-Refer to Figure 20-3. In 2011, the percent of adults between ages 18 and 64 in poverty is

Accepted Answer

A)   higher than both the percentage of children under age 18 and the percentage of elderly aged 65 and over in poverty.
B)   higher than the percentage of children under age 18 but is lower than the percentage of elderly aged 65 and over in poverty.
C)   is lower than the percentage of children under age 18 but is higher than the percentage of elderly aged 65 and over in poverty.
D)   is lower than the percentage of children under age 18 and is equal to the percentage of elderly aged 65 and over in poverty.E) B) and D)
F) B) and C)

Question 18

The United States has more income inequality than Brazil and South Africa.

Accepted Answer

A) True 
 B)False

Question 19

Table 20-1
The following table shows the distribution of income in Marysville. 
-Refer to Table 20-1. Seventy-five percent of all families have incomes above what level?

Accepted Answer

A)   $30,000
B)   $60,000
C)   $90,000
D)   There is insufficient information to answer this question.E) A) and D)
F) A) and B)

Question 20

If the value of in-kind transfers are taken into account, the number of families living in poverty in the United States would

Accepted Answer

A)   increase by about 1 percent.
B)   decrease by about 1 percent.
C)   decrease by about 5 percent.
D)   decrease by about 10 percent.E) B) and D)
F) A) and C)

Exam 20: Income Inequality and Poverty

According to libertarians, the government should redistribute income from rich individuals to poor individuals to achieve a more equal distribution of income.

Correct Answer
verified

"The government should choose policies deemed to be just, as evaluated by an impartial observer behind a 'veil of ignorance.'" This statement is most closely associated with which political philosophy?

Correct Answer
verified

The 2011 U.S. distribution of income shows that the top 5 percent of families earn approximately how much income per year?

Correct Answer
verified

If the value of in-kind transfers are taken into account, the number of families living in poverty in the United States would

Correct Answer
verified

Figure 20-5 -Refer to Figure 20-5. If the government imposes a minimum wage above Wo, it is likely to

Correct Answer
verified

Table 20-1 The following table shows the distribution of income in Marysville. -Refer to Table 20-1. Seventy-five percent of all families have incomes above what level?

Correct Answer
verified

The United States has more income inequality than Brazil and South Africa.

Correct Answer
verified

Explain how a "leaky bucket" can be used to illustrate the utilitarian argument that governments should not attempt to completely equalize individual incomes.

Correct Answer
verified
Utilitarians reject complete equalizatio...
View Answer

Correct Answer
verified

If the government decided that each family needs a minimum income of $25,000 and promised to make up the difference between whatever a family earned and $25,000, which of the following is correct?

Correct Answer
verified

A tax provision that works much like a negative income tax is the

Correct Answer
verified

Figure 20-3 -Refer to Figure 20-3. In 2011, the percent of adults between ages 18 and 64 in poverty is

Correct Answer
verified

The income level below which families are said to be poor is known as the

Correct Answer
verified

In the United States from 1935 to 2011 the share of total income earned by the bottom fifth of income earners rose and then fell.

Correct Answer
verified

Correct Answer
verified

Table 20-11 Poverty Thresholds in 2011, 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 20-11. What is the poverty line for a family with one 35-year-old adult and one child?

Correct Answer
verified

Explain what is meant by "in-kind transfer" programs. Briefly outline the advantages and disadvantages of an in-kind transfer program.

Correct Answer
verified
An in-kind transfer program distributes ...
View Answer

Table 20-11 Poverty Thresholds in 2011, 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 20-11. What is the poverty line for a family of eight with two children?

Correct Answer
verified

Table 20-13 Distribution of Income in Imagination -Refer to Table 20-13. If the poverty line in Imagination is $18,000, what is the poverty rate?

Correct Answer
verified

Which of the following statements is correct?

Correct Answer
verified

Exam 20: Income Inequality and Poverty

According to libertarians, the government should redistribute income from rich individuals to poor individuals to achieve a more equal distribution of income.

Correct AnswerverifiedShow Answer

"The government should choose policies deemed to be just, as evaluated by an impartial observer behind a 'veil of ignorance.'" This statement is most closely associated with which political philosophy?

Correct AnswerverifiedShow Answer

The 2011 U.S. distribution of income shows that the top 5 percent of families earn approximately how much income per year?

Correct AnswerverifiedShow Answer

If the value of in-kind transfers are taken into account, the number of families living in poverty in the United States would

Correct AnswerverifiedShow Answer

Figure 20-5 -Refer to Figure 20-5. If the government imposes a minimum wage above Wo, it is likely to

Correct AnswerverifiedShow Answer

Table 20-1 The following table shows the distribution of income in Marysville. -Refer to Table 20-1. Seventy-five percent of all families have incomes above what level?

Correct AnswerverifiedShow Answer

The United States has more income inequality than Brazil and South Africa.

Correct AnswerverifiedShow Answer

Explain how a "leaky bucket" can be used to illustrate the utilitarian argument that governments should not attempt to completely equalize individual incomes.

Correct AnswerverifiedUtilitarians reject complete equalizatio...View AnswerShow Answer

Correct AnswerverifiedShow Answer

If the government decided that each family needs a minimum income of $25,000 and promised to make up the difference between whatever a family earned and $25,000, which of the following is correct?

Correct AnswerverifiedShow Answer

A tax provision that works much like a negative income tax is the

Correct AnswerverifiedShow Answer

Figure 20-3 -Refer to Figure 20-3. In 2011, the percent of adults between ages 18 and 64 in poverty is

Correct AnswerverifiedShow Answer

The income level below which families are said to be poor is known as the

Correct AnswerverifiedShow Answer

In the United States from 1935 to 2011 the share of total income earned by the bottom fifth of income earners rose and then fell.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Table 20-11 Poverty Thresholds in 2011, 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 20-11. What is the poverty line for a family with one 35-year-old adult and one child?

Correct AnswerverifiedShow Answer

Explain what is meant by "in-kind transfer" programs. Briefly outline the advantages and disadvantages of an in-kind transfer program.

Correct AnswerverifiedAn in-kind transfer program distributes ...View AnswerShow Answer

Table 20-11 Poverty Thresholds in 2011, 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 20-11. What is the poverty line for a family of eight with two children?

Correct AnswerverifiedShow Answer

Table 20-13 Distribution of Income in Imagination -Refer to Table 20-13. If the poverty line in Imagination is $18,000, what is the poverty rate?

Correct AnswerverifiedShow Answer

Which of the following statements is correct?

Correct AnswerverifiedShow Answer

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Utilitarians reject complete equalizatio...
View Answer

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An in-kind transfer program distributes ...
View Answer

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