Question 1

The distribution of income for Dismal is as follows:  If the poverty rate in Dismal is 50 percent, what is the poverty line in Dismal?

Accepted Answer

A)  $10,000.
B)  $20,000.
C)  $30,000.
D)  $40,000.E) All of the above
F) C) and D)

Question 2

The lack of progress in reducing the poverty rate since the early 1970s is most closely related with which of the following factors?

Accepted Answer

A)  increasing income inequality
B)  a reduction in the poverty line
C)  rapid economic growth
D)  a reduction in international tradeE) A) and B)
F) All of the above A

Question 3

Scenario 20-7
Zooey is a single mother of two young children whose husband died in a tragic car accident. She earns $20,000 per year working as a cashier at a grocery store. The government uses a negative income tax system in which
Taxes owed = (1/4 of income) - $15,000.
-Refer to Scenario 20-7. Zooey's brother Zander owes $10,000 in taxes. How much does he earn?

Accepted Answer

The answer of Scenario 20-7
Zooey is a single mother of...

Question 4

Figure 20-4 
-Refer to Figure 20-4. The ratio of female-to-male earnings has increased steadily from about 1980 to 2008 because the earnings of men

Accepted Answer

A)  increased steadily but by approximately half of the increase in the earnings of women.
B)  decreased while the earnings of women increased.
C)  stayed relatively constant while the earnings of women increased.
D)  decreased by substantially more than the decrease in the earnings of women.E) C) and D)
F) B) and C) C

Question 5

In 2011, what percentage of U.S. families had income levels above $115,866?

Accepted Answer

A)  10 percent
B)  20 percent
C)  60 percent
D)  80 percentE) A) and D)
F) B) and C)

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

One existing government program that works much like a negative income tax is Medicaid.

Accepted Answer

A) True 
 B)False

Question 8

Scenario 20-7
Zooey is a single mother of two young children whose husband died in a tragic car accident. She earns $20,000 per year working as a cashier at a grocery store. The government uses a negative income tax system in which
Taxes owed = (1/4 of income) - $15,000.
-Refer to Scenario 20-7. One of Zooey's friends tells her she would have more money for the year if she quit her job and filed her tax return with $0 in income. Is her friend correct? Why or why not?

Accepted Answer

No, she would have $...

Question 9

Which of the following lists correctly ranks countries from most equal to least equal distribution of income?

Accepted Answer

A)  Nigeria, India, Mexico, Germany
B)  Brazil, United States, India, Japan
C)  United States, Ethiopia, Japan, South Africa
D)  Japan, India, United States, BrazilE) A) and B)
F) A) and C)

Question 10

Scenario 20-2
The government is proposing switching from a progressive tax system, in which families pay 15% of the first $40,000 earned, 30% of the next $40,000 earned, and 45% of any income over $80,000 to a tax system in which every family pays 1/4 of its income regardless of how much they earn and all income redistribution is eliminated. That is, the tax revenue generated is used only for infrastructure, public administration, and national defense.
-Refer to Scenario 20-2. Which philosopher would be most in favor of the proposed change in tax policy?

Accepted Answer

A)  Jeremy Bentham
B)  John Stuart Mill
C)  John Rawls
D)  Robert NozickE) All of the above
F) A) and C)

Question 11

Libertarians believe that

Accepted Answer

A)  the government should choose just policies as evaluated by an impartial observer behind a "veil of ignorance."
B)  the government should aim to maximize the well-being of the worst-off person in society.
C)  everyone in society should have equal utility.
D)  the government should not redistribute income.E) None of the above
F) A) and B)

Question 12

The federal government sets the poverty line at roughly

Accepted Answer

A)  five times the cost of providing an adequate diet.
B)  four times the cost of providing an adequate diet.
C)  three times the cost of providing an adequate diet.
D)  two times the cost of providing an adequate diet.E) B) and C)
F) B) and D)

Question 13

Table 20-14
James, Luke, Peter, Micah, and Sarah are the only five inhabits of Marketsville. The following table shows their income.  ​
​
-Refer to Table 20-14. According to the table, what percentage of individuals in Marketsville have an income below $64,000?

Accepted Answer

A)  20 percent
B)  40 percent
C)  60 percent
D)  80 percentE) A) and B)
F) A) and C)

Question 14

Figure 20-2 
-Refer to Figure 20-2. Which of the following is consistent with the data reported in the figure?

Accepted Answer

A)  The female poverty rate is higher for all age groups than the male poverty rate.
B)  The disparity between male and female poverty increases with age.
C)  Neither a nor b are correct.
D)  Both a and b are correct.E) A) and D)
F) B) and D)

Question 15

Comparing the United States household income distribution to other countries is

Accepted Answer

A)  easy, because data is available for all countries in the world.
B)  easy, because some countries collect data on expenditures instead of incomes.
C)  problematic, because international agreements require countries to standardize their income accounting procedures.
D)  problematic, because countries collect data in different ways.E) A) and D)
F) B) and D)

Question 16

The distribution of income for Abbyville is as follows:  If the poverty rate in Abbyville is 12 percent, what is the poverty line in Abbyville?

Accepted Answer

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

Question 17

Scenario 20-8
Suppose the government implemented a negative income tax and used the following formula to compute a family's tax liability:
Taxes owed = (1/4 of income)  - $14,000
​
​
-The ancient Greek philosopher, Plato, concluded that in an ideal society the income of the richest person

Accepted Answer

A)  would be equal to the income of the poorest person.
B)  would be no more than four times the income of the poorest person.
C)  would be reflective of the effort put forth by that person.
D)  would be taxed at a higher rate than the income of the poorest person.E) None of the above
F) A) and D)

Question 18

Data for the United States suggests that about how many millionaires inherited their fortunes?

Accepted Answer

A)  one in seven
B)  one in five
C)  one in three
D)  one in twoE) None of the above
F) C) and D) B

Question 19

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

Accepted Answer

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

Question 20

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) A) and B)
F) None of the above

Exam 20: Income Inequality and Poverty

The distribution of income for Dismal is as follows: If the poverty rate in Dismal is 50 percent, what is the poverty line in Dismal?

Correct Answer
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The lack of progress in reducing the poverty rate since the early 1970s is most closely related with which of the following factors?

Correct Answer
verified
A

Correct Answer
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Figure 20-4 -Refer to Figure 20-4. The ratio of female-to-male earnings has increased steadily from about 1980 to 2008 because the earnings of men

Correct Answer
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C

In 2011, what percentage of U.S. families had income levels above $115,866?

Correct Answer
verified

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

Correct Answer
verified

One existing government program that works much like a negative income tax is Medicaid.

Correct Answer
verified

Correct Answer
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No, she would have $...
View Answer

Which of the following lists correctly ranks countries from most equal to least equal distribution of income?

Correct Answer
verified

Correct Answer
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Libertarians believe that

Correct Answer
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The federal government sets the poverty line at roughly

Correct Answer
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Table 20-14 James, Luke, Peter, Micah, and Sarah are the only five inhabits of Marketsville. The following table shows their income. -Refer to Table 20-14. According to the table, what percentage of individuals in Marketsville have an income below $64,000?

Correct Answer
verified

Figure 20-2 -Refer to Figure 20-2. Which of the following is consistent with the data reported in the figure?

Correct Answer
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Comparing the United States household income distribution to other countries is

Correct Answer
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The distribution of income for Abbyville is as follows: If the poverty rate in Abbyville is 12 percent, what is the poverty line in Abbyville?

Correct Answer
verified

Scenario 20-8 Suppose the government implemented a negative income tax and used the following formula to compute a family's tax liability: Taxes owed = (1/4 of income) - $14,000 -The ancient Greek philosopher, Plato, concluded that in an ideal society the income of the richest person

Correct Answer
verified

Data for the United States suggests that about how many millionaires inherited their fortunes?

Correct Answer
verified
B

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

Correct Answer
verified

A common criticism of welfare programs is that they

Correct Answer
verified

Exam 20: Income Inequality and Poverty

The distribution of income for Dismal is as follows: If the poverty rate in Dismal is 50 percent, what is the poverty line in Dismal?

Correct AnswerverifiedShow Answer

The lack of progress in reducing the poverty rate since the early 1970s is most closely related with which of the following factors?

Correct AnswerverifiedA

Correct AnswerverifiedShow Answer

Figure 20-4 -Refer to Figure 20-4. The ratio of female-to-male earnings has increased steadily from about 1980 to 2008 because the earnings of men

Correct AnswerverifiedC

In 2011, what percentage of U.S. families had income levels above $115,866?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

One existing government program that works much like a negative income tax is Medicaid.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedNo, she would have $...View AnswerShow Answer

Which of the following lists correctly ranks countries from most equal to least equal distribution of income?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Libertarians believe that

Correct AnswerverifiedShow Answer

The federal government sets the poverty line at roughly

Correct AnswerverifiedShow Answer

Table 20-14 James, Luke, Peter, Micah, and Sarah are the only five inhabits of Marketsville. The following table shows their income. ​ ​ -Refer to Table 20-14. According to the table, what percentage of individuals in Marketsville have an income below $64,000?

Correct AnswerverifiedShow Answer

Figure 20-2 -Refer to Figure 20-2. Which of the following is consistent with the data reported in the figure?

Correct AnswerverifiedShow Answer

Comparing the United States household income distribution to other countries is

Correct AnswerverifiedShow Answer

The distribution of income for Abbyville is as follows: If the poverty rate in Abbyville is 12 percent, what is the poverty line in Abbyville?

Correct AnswerverifiedShow Answer

Scenario 20-8 Suppose the government implemented a negative income tax and used the following formula to compute a family's tax liability: Taxes owed = (1/4 of income) - $14,000 ​ ​ -The ancient Greek philosopher, Plato, concluded that in an ideal society the income of the richest person

Correct AnswerverifiedShow Answer

Data for the United States suggests that about how many millionaires inherited their fortunes?

Correct AnswerverifiedB

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

Correct AnswerverifiedShow Answer

A common criticism of welfare programs is that they

Correct AnswerverifiedShow Answer

Correct Answer
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A

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C

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No, she would have $...
View Answer

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Correct Answer
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Table 20-14 James, Luke, Peter, Micah, and Sarah are the only five inhabits of Marketsville. The following table shows their income. -Refer to Table 20-14. According to the table, what percentage of individuals in Marketsville have an income below $64,000?

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Scenario 20-8 Suppose the government implemented a negative income tax and used the following formula to compute a family's tax liability: Taxes owed = (1/4 of income) - $14,000 -The ancient Greek philosopher, Plato, concluded that in an ideal society the income of the richest person

Correct Answer
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Correct Answer
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B

Correct Answer
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