Question 1

According to utilitarians,the ultimate objective of public actions should be to

Accepted Answer

A)   enhance the income of the rich.
B)   ensure an egalitarian distribution of income.
C)   maximize the sum of individual utility.
D)   provide for the betterment of the poor.E) All of the above
F) None of the above

Question 2

The English philosophers Jeremy Bentham and John Stuart Mill founded the school of thought called

Accepted Answer

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

Question 3

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 libertarian political philosophy follows the maximin criterion.E) C) and D)
F) All of the above

Question 4

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) B) and C)
F) A) and C)

Question 5

In-kind transfers are

Accepted Answer

A)   obtained only by those who have political connections.
B)   provided only by the U.S.government.
C)   non-monetary items given to the poor.
D)   obtained primarily through soup kitchens and private charities.E) A) and B)
F) All of the above

Question 6

Table 20-1
 
-Refer to Table 20-1.Seventy-five percent of all families have incomes below what level?

Accepted Answer

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

Question 7

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) A) and D)

Question 8

The poverty rate is a measure of people unable to meet the government's poverty line.

Accepted Answer

A) True 
 B)False

Question 9

The distribution of income for Danville is as follows:

Where would the government in Danville set the poverty line to establish a poverty rate of 33.3 percent?

Accepted Answer

A)   $15,000.
B)   $20,000.
C)   $25,000.
D)   $30,000.E) B) and D)
F) All of the above

Question 10

Relative to direct cash payments,in-kind transfers have the advantage of being

Accepted Answer

A)   more politically popular.
B)   more efficient.
C)   more respectful of the poor.
D)   of a higher dollar value than cash payments.E) B) and D)
F) B) and C)

Question 11

Table 20-4
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 20-4.What is the poverty line for a family of three with one child?

Accepted Answer

A)   $12,072
B)   $12,400
C)   $14,480
D)   $14,494E) None of the above
F) B) and C)

Question 12

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

Question 13

Scenario 20-1
Suppose that a society is made up of five families whose incomes are as follows:
$120,000;$90,000;$30,000;$30,000;and $18,000.
The federal government is considering two potential income tax plans:
Plan A is a negative income tax plan where the taxes owed equal 1/3 of income minus $20,000.
Plan B is a two-tiered plan where the poverty line is $35,000;families earning over $35,000 pay 10% of their income in taxes,and families earning less than $35,000 pay no income tax.
-Refer to Scenario 20-1.Assuming that utility is directly proportional to the cash value of after-tax income,which government policy would an advocate of utilitarianism prefer?

Accepted Answer

A)   Plan A
B)   Plan B
C)   either Plan A or Plan B
D)   neither Plan A nor Plan B because any plan that forcibly redistributes income is against the philosophyE) A) and D)
F) B) and C)

Question 14

About half of black and Hispanic children in female-headed households live in poverty.

Accepted Answer

A) True 
 B)False

Question 15

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 16

Which of the following programs would be opposed by philosopher John Rawls?

Accepted Answer

A)   A negative income tax.
B)   The Supplemental Security Income (SSI) program.
C)   A tax plan creating a perfectly egalatarian income distribution.
D)   Rawls would oppose all of the programs.E) All of the above
F) B) and D)

Question 17

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 C)
F) None of the above

Question 18

Economic mobility refers to the

Accepted Answer

A)   government's attempt to distribute monetary assistance to areas most in need.
B)   ability of families to freely relocate to find good jobs.
C)   movement of people among income classes.
D)   movement of resources from one country to another.E) A) and D)
F) C) and D)

Question 19

Table 20-2
Percentage of Before-Tax Income Received by Families in Hapland
 
-Refer to Table 20-2.According to the table,from 1950 to 2000,Hapland income distribution became

Accepted Answer

A)   less equal.
B)   more equal.
C)   more equal at the lowest level of income but less equal at highest level of income.
D)   less equal at the lowest level of income but more equal at highest level of income.E) B) and C)
F) A) and B)

Question 20

Which of the Ten Principles of Economics come into conflict with each other in this chapter?

Accepted Answer

A)   A country's standard of living depends on its ability to produce goods & People face tradeoffs.
B)   Prices rise when the government prints too much money & Governments can sometimes improve market outcomes.
C)   Governments can sometimes improve market outcomes & People face tradeoffs.
D)   People face tradeoffs & Prices rise when the government prints too much money .E) A) and C)
F) C) and D)

Exam 20: Income Inequality and Poverty

Which of the Ten Principles of Economics come into conflict with each other in this chapter?

Correct Answer
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Table 20-2 Percentage of Before-Tax Income Received by Families in Hapland -Refer to Table 20-2.According to the table,from 1950 to 2000,Hapland income distribution became

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

Correct Answer
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Relative to direct cash payments,in-kind transfers have the advantage of being

Correct Answer
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The poverty rate is a measure of people unable to meet the government's poverty line.

Correct Answer
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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

Minimum wage laws

Correct Answer
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Economic mobility refers to the

Correct Answer
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Which of the following programs would be opposed by philosopher John Rawls?

Correct Answer
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Which of the following statements is correct?

Correct Answer
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About half of black and Hispanic children in female-headed households live in poverty.

Correct Answer
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The English philosophers Jeremy Bentham and John Stuart Mill founded the school of thought called

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

Correct Answer
verified

According to utilitarians,the ultimate objective of public actions should be to

Correct Answer
verified

The distribution of income for Danville is as follows: Where would the government in Danville set the poverty line to establish a poverty rate of 33.3 percent?

Correct Answer
verified

Libertarianism identifies a redistribution of income role for government when

Correct Answer
verified

Table 20-1 -Refer to Table 20-1.Seventy-five percent of all families have incomes below what level?

Correct Answer
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Table 20-4 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 20-4.What is the poverty line for a family of three with one child?

Correct Answer
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In-kind transfers are

Correct Answer
verified

Exam 20: Income Inequality and Poverty

Which of the Ten Principles of Economics come into conflict with each other in this chapter?

Correct AnswerverifiedShow Answer

Table 20-2 Percentage of Before-Tax Income Received by Families in Hapland -Refer to Table 20-2.According to the table,from 1950 to 2000,Hapland income distribution became

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Relative to direct cash payments,in-kind transfers have the advantage of being

Correct AnswerverifiedShow Answer

The poverty rate is a measure of people unable to meet the government's poverty line.

Correct AnswerverifiedShow Answer

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

Minimum wage laws

Correct AnswerverifiedShow Answer

Economic mobility refers to the

Correct AnswerverifiedShow Answer

Which of the following programs would be opposed by philosopher John Rawls?

Correct AnswerverifiedShow Answer

Which of the following statements is correct?

Correct AnswerverifiedShow Answer

About half of black and Hispanic children in female-headed households live in poverty.

Correct AnswerverifiedShow Answer

The English philosophers Jeremy Bentham and John Stuart Mill founded the school of thought called

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

According to utilitarians,the ultimate objective of public actions should be to

Correct AnswerverifiedShow Answer

The distribution of income for Danville is as follows: Where would the government in Danville set the poverty line to establish a poverty rate of 33.3 percent?

Correct AnswerverifiedShow Answer

Libertarianism identifies a redistribution of income role for government when

Correct AnswerverifiedShow Answer

Table 20-1 -Refer to Table 20-1.Seventy-five percent of all families have incomes below what level?

Correct AnswerverifiedShow Answer

Table 20-4 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 20-4.What is the poverty line for a family of three with one child?

Correct AnswerverifiedShow Answer

In-kind transfers are

Correct AnswerverifiedShow Answer

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