Question 1

The elderly represent the largest demographic group in poverty.

Accepted Answer

A) True 
 B)False

Question 2

Economic mobility in the United States is

Accepted Answer

A)   uncommon. Over 50 percent of poor families remain poor for 8 or more years.
B)   uncommon. Over 75 percent of poor families remain poor for 8 or more years.
C)   common. Fewer than 3 percent of poor families remain poor for 8 or more years.
D)   common. Fewer than 1 percent of poor families remain poor for 8 or more years.E) None of the above
F) A) and D)

Question 3

If the U.S.government determines that the cost of feeding an urban family of four is $5,200 per year,then the official poverty line for a family of that type is

Accepted Answer

A)   $10,400.
B)   $15,600.
C)   $20,800.
D)   $26,000.E) B) and C)
F) A) and D)

Question 4

When designing public policies,which income group would philosopher John Rawls argue needs the most attention?

Accepted Answer

A)   Individuals located in the bottom fifth of the income distribution.
B)   Individuals located at the average income level.
C)   Individuals located in the top fifth of the income distribution.
D)   Individuals located in the top five percent of the income distribution.E) B) and C)
F) A) and D)

Question 5

Explain the concept of diminishing marginal utility,and describe the role that it plays in the utilitarian argument for the redistribution of income.

Accepted Answer

Diminishing marginal utility refers to t...

Question 6

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

Accepted Answer

A)   $28,000
B)   $50,000
C)   $85,000
D)   There is insufficient information to answer this question.E) All of the above
F) A) and B)

Question 7

What is meant by a perfectly equal distribution of income? Use a graph to depict such a situation.

Accepted Answer

<img  loading="lazy" src="/assets/images/blured-textbook.svg" class="d-inline m-1" alt="blured image" width="139" height="30"> If income were equally distributed acro...

Question 8

A common criticism of welfare programs is that they

Accepted Answer

A)   create self-reliant individuals.
B)   encourage strong family values.
C)   encourage illegitimate births.
D)   have increasing benefits over time, in real terms.E) B) and D)
F) C) and D)

Question 9

Which political philosophy focuses on the process of determining the distribution of income rather than on the outcome?

Accepted Answer

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

Question 10

The United States has more income inequality than Japan,Germany,and Canada.

Accepted Answer

A) True 
 B)False

Question 11

A utilitarian government has to balance the gains from greater income equality against the losses from distorted work incentives.To maximize total utility,therefore,the government

Accepted Answer

A)   would never tax labor income.
B)   must always achieve a fully egalitarian society.
C)   enacts policies that only benefit the middle class.
D)   stops short of a fully egalitarian society.E) A) and D)
F) A) and C)

Question 12

Would the maximin criterion achieve perfect income equality?

Accepted Answer

A)   Yes. There would be no way to reallocate resources to raise the utility of the poor.
B)   Yes. The maximin criterion would eliminate poverty.
C)   No. It is impossible for complete equality to benefit the worst-off people in society.
D)   No. Complete equality would reduce incentives to work, which would reduce total income, which would reduce the incomes of the worst-off people in society.E) A) and C)
F) None of the above

Question 13

The maximin criterion is the idea that the government should aim to maximize the well-being of the worst-off person in society.

Accepted Answer

A) True 
 B)False

Question 14

The poverty rate for female households with no spouse present is approximately

Accepted Answer

A)   10 percent.
B)   20 percent.
C)   30 percent.
D)   40 percent.E) C) and D)
F) All of the above

Question 15

The only qualification to receive government assistance under a negative income tax is

Accepted Answer

A)   pre-school children.
B)   to be enrolled in job training.
C)   a working head-of-household.
D)   a low income.E) None of the above
F) B) and C)

Question 16

The concept of diminishing marginal utility is embedded in the utilitarian rationale for

Accepted Answer

A)   trickle-down effects.
B)   enhancing market efficiency.
C)   redistributing income.
D)   maintaining the status quo income distribution.E) None of the above
F) A) and C)

Question 17

Poor families are eligible for financial assistance,without having to demonstrate any additional "need,"

Accepted Answer

A)   under the current welfare system and under a negative income tax.
B)   under the current welfare system but not under a negative income tax.
C)   under a negative income tax but not under the current welfare system.
D)   under neither the current welfare system nor under a negative income tax.E) B) and D)
F) A) and C)

Question 18

The utilitarian case for redistributing income is based on the assumption of

Accepted Answer

A)   collective consensus.
B)   a notion of fairness engendered by equality.
C)   diminishing marginal utility.
D)   rising marginal utility.E) A) and D)
F) B) and C)

Question 19

The maximin criterion for government policies is associated with

Accepted Answer

A)   the school of thought called utilitarianism.
B)   the school of thought called liberalism.
C)   the school of thought called libertarianism.
D)   the school of thought called stoicism.E) B) and D)
F) A) and C)

Question 20

Libertarianism identifies a redistribution of income role for government when

Accepted Answer

A)   individual incomes vary widely.
B)   the income distribution is altered by illegal means (e.g. theft) .
C)   a social planner is needed to smooth out the transitory income stream.
D)   workers lose their jobs as a result of structural changes in the economy.E) B) and C)
F) All of the above

Exam 20: Income Inequality and Poverty.

A common criticism of welfare programs is that they

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Which political philosophy focuses on the process of determining the distribution of income rather than on the outcome?

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Poor families are eligible for financial assistance,without having to demonstrate any additional "need,"

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What is meant by a perfectly equal distribution of income? Use a graph to depict such a situation.

Correct Answerverified If income were equally distributed acro...View AnswerShow Answer

The elderly represent the largest demographic group in poverty.

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If the U.S.government determines that the cost of feeding an urban family of four is $5,200 per year,then the official poverty line for a family of that type is

Correct AnswerverifiedShow Answer

The poverty rate for female households with no spouse present is approximately

Correct AnswerverifiedShow Answer

The United States has more income inequality than Japan,Germany,and Canada.

Correct AnswerverifiedShow Answer

When designing public policies,which income group would philosopher John Rawls argue needs the most attention?

Correct AnswerverifiedShow Answer

The concept of diminishing marginal utility is embedded in the utilitarian rationale for

Correct AnswerverifiedShow Answer

The only qualification to receive government assistance under a negative income tax is

Correct AnswerverifiedShow Answer

The maximin criterion for government policies is associated with

Correct AnswerverifiedShow Answer

Explain the concept of diminishing marginal utility,and describe the role that it plays in the utilitarian argument for the redistribution of income.

Correct AnswerverifiedDiminishing marginal utility refers to t...View AnswerShow Answer

The maximin criterion is the idea that the government should aim to maximize the well-being of the worst-off person in society.

Correct AnswerverifiedShow Answer

Economic mobility in the United States is

Correct AnswerverifiedShow Answer

A utilitarian government has to balance the gains from greater income equality against the losses from distorted work incentives.To maximize total utility,therefore,the government

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

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Would the maximin criterion achieve perfect income equality?

Correct AnswerverifiedShow Answer

Libertarianism identifies a redistribution of income role for government when

Correct AnswerverifiedShow Answer

The utilitarian case for redistributing income is based on the assumption of

Correct AnswerverifiedShow Answer

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If income were equally distributed acro...
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Diminishing marginal utility refers to t...
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