Question 1

People have their highest saving rates when they are

Accepted Answer

A)   retired.
B)   middle-aged.
C)   married with young children.
D)   young and single.E) All of the above
F) None of the above

Question 2

The United States has relatively greater income

Accepted Answer

A)   inequality than developing countries but greater equality than other developed countries.
B)   inequality than both developing and other developed countries.
C)   equality than developing countries but greater inequality than other developed countries.
D)   equality than both developing and other developed countries.E) A) and B)
F) All of the above

Question 3

Which of the following programs to alleviate poverty would be most favored by philosopher Robert Nozick and why?

Accepted Answer

A)   A negative income tax because it would maximize the minimum income of members of society.
B)   An Earned Income Tax Credit (EIT
C)  because a policy that rewards the working poor would be the most just.
C)   An in-kind transfer program because it would maximize the total utility of all members of society.
D)   None of the programs would be favored because each of them forcibly redistributes income that was fairly,if not equally,earned.E) B) and D)
F) C) and D)

Question 4

Suppose a society consists of only two people: John and Jane.A utilitarian would say that the proper role of government in this society is to

Accepted Answer

A)   equalize the incomes of John and Jane.
B)   equalize John's utility and Jane's utility.
C)   equalize John's marginal utility and Jane's marginal utility.
D)   maximize the sum of John's utility and Jane's utility.E) A) and C)
F) A) and D)

Question 5

Which of the following statements is not correct?

Accepted Answer

A)   Welfare programs may encourage illegitimate births.
B)   The decline in welfare benefits since the 1970s has been associated with a decline in the percentage of children living with a single parent.
C)   Welfare programs may reduce incentives for people to work.
D)   A negative income tax program uses tax revenues collected from high-income families to provide cash subsidies to low-income families.E) A) and D)
F) A) and C)

Question 6

Critics of welfare reform argue that

Accepted Answer

A)   drug addiction has increased among the working poor.
B)   the emphasis on work has forced many mothers into low-paying jobs while not providing adequate child care.
C)   homelessness has increased dramatically.
D)   the number of people on welfare rolls increased after reform.E) A) and D)
F) B) and D)

Question 7

Explain what information is contained in the poverty rate statistic.Are there problems in using an absolute scale to measure poverty? If so,explain them.

Accepted Answer

The poverty rate is the percentage of th...

Question 8

Figure 20-2
Poverty Rates by Age 
-Refer to Figure 20-2.In 2001,the percent of adults between aged 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 both the percentage of children under age 18 and 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) A) and B)
F) All of the above

Question 9

In the parable of the leaky bucket,a fundamental problem with government redistribution programs is identified.As long as the government only has "leaky buckets" at its disposal,

Accepted Answer

A)   the costs of welfare programs will exceed the benefits.
B)   it should not try to reach complete equality in income.
C)   income equality will be the best policy option.
D)   equality of economic opportunity will reduce society's utility.E) B) and D)
F) C) and D)

Question 10

Internet access is the most important factor explaining reductions in child labor in Vietnam.

Accepted Answer

A) True 
 B)False

Question 11

Supporters of welfare reform argue that

Accepted Answer

A)   childhood literacy rates have increased.
B)   private charities have provided sufficient child-care resources for working mothers.
C)   employment has increased among the demographic groups traditionally on welfare,including single mothers.
D)   tax evasion declined among employers of former welfare recipients.E) A) and B)
F) A) and C)

Question 12

Standard measurements of the degree of income inequality take both money income and in-kind transfers into account.

Accepted Answer

A) True 
 B)False

Exam 20: Income Inequality and Poverty

Standard measurements of the degree of income inequality take both money income and in-kind transfers into account.

Correct Answer
verified

Supporters of welfare reform argue that

Correct Answer
verified

Internet access is the most important factor explaining reductions in child labor in Vietnam.

Correct Answer
verified

Explain what information is contained in the poverty rate statistic.Are there problems in using an absolute scale to measure poverty? If so,explain them.

Correct Answer
verified
The poverty rate is the percentage of th...
View Answer

Which of the following programs to alleviate poverty would be most favored by philosopher Robert Nozick and why?

Correct Answer
verified

Critics of welfare reform argue that

Correct Answer
verified

Figure 20-2 Poverty Rates by Age -Refer to Figure 20-2.In 2001,the percent of adults between aged 18 and 64 in poverty is

Correct Answer
verified

People have their highest saving rates when they are

Correct Answer
verified

In the parable of the leaky bucket,a fundamental problem with government redistribution programs is identified.As long as the government only has "leaky buckets" at its disposal,

Correct Answer
verified

Which of the following statements is not correct?

Correct Answer
verified

The United States has relatively greater income

Correct Answer
verified

Suppose a society consists of only two people: John and Jane.A utilitarian would say that the proper role of government in this society is to

Correct Answer
verified

Exam 20: Income Inequality and Poverty

Standard measurements of the degree of income inequality take both money income and in-kind transfers into account.

Correct AnswerverifiedShow Answer

Supporters of welfare reform argue that

Correct AnswerverifiedShow Answer

Internet access is the most important factor explaining reductions in child labor in Vietnam.

Correct AnswerverifiedShow Answer

Explain what information is contained in the poverty rate statistic.Are there problems in using an absolute scale to measure poverty? If so,explain them.

Correct AnswerverifiedThe poverty rate is the percentage of th...View AnswerShow Answer

Which of the following programs to alleviate poverty would be most favored by philosopher Robert Nozick and why?

Correct AnswerverifiedShow Answer

Critics of welfare reform argue that

Correct AnswerverifiedShow Answer

Figure 20-2 Poverty Rates by Age -Refer to Figure 20-2.In 2001,the percent of adults between aged 18 and 64 in poverty is

Correct AnswerverifiedShow Answer

People have their highest saving rates when they are

Correct AnswerverifiedShow Answer

In the parable of the leaky bucket,a fundamental problem with government redistribution programs is identified.As long as the government only has "leaky buckets" at its disposal,

Correct AnswerverifiedShow Answer

Which of the following statements is not correct?

Correct AnswerverifiedShow Answer

The United States has relatively greater income

Correct AnswerverifiedShow Answer

Suppose a society consists of only two people: John and Jane.A utilitarian would say that the proper role of government in this society is to

Correct AnswerverifiedShow Answer

Correct Answer
verified

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Correct Answer
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The poverty rate is the percentage of th...
View Answer

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Correct Answer
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