Question 1

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 egalitarian income distribution
D)  Rawls would oppose all of the programs.E) A) and B)
F) A) and C)

Question 2

The 2011 U.S. distribution of income shows that the top 20 percent of families have approximately what share of income?

Accepted Answer

A)  20 percent
B)  35 percent
C)  50 percent
D)  80 percentE) B) and D)
F) B) and C)

Question 3

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 4

The poverty line in the country of Inequalia is $10,000. The distribution of income for Inequalia is as follows:  The poverty rate in Inequalia is

Accepted Answer

A)  11.1 percent.
B)  16.7 percent.
C)  27.8 percent.
D)  55.5 percent.E) None of the above
F) B) and C)

Question 5

In a typical 10-year period, about one in four families falls below the poverty line in at least one year. What percentage of families are poor for eight or more years?

Accepted Answer

The answer of In a typical 10-year period, about one...

Question 6

A system in which anyone collecting antipoverty program benefits must accept a government-provided job is called .

Accepted Answer

The answer of A system in which anyone collecting antipoverty...

Question 7

Which political philosophy concludes that equality of opportunities is more important than equality of outcomes?

Accepted Answer

The answer of Which political philosophy concludes that equality of...

Question 8

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
​
​
-Refer to Scenario 20-8. The government does not have to pay a subsidy to any family through this negative income tax if the family with the lowest income earns $50,000.

Accepted Answer

A) True 
 B)False

Question 9

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

Question 10

In-kind transfers are transfers to the poor

Accepted Answer

A)  in the form of goods and services rather than cash.
B)  in the form of goods, services, and cash.
C)  from private charitable organizations only.
D)  from the federal government only.E) A) and B)
F) B) and C)

Question 11

Table 20-13
The following table shows the distribution of income in Widgetapolis.  ​
-Refer to Table 20-13. If the poverty rate is 19%, where is the poverty line in Widgetapolis?

Accepted Answer

A)  under $39,000
B)  between $39,000 and $59,999
C)  between $60,000 and $81,999
D)  between $82,000 and $109,999E) B) and C)
F) A) and C)

Question 12

The study by economists Cox and Alm found

Accepted Answer

A)  the gap between rich and poor shrinks greatly if using after-tax income compared with pre-tax income.
B)  the gap between rich and poor shrinks slightly if using after-tax income compared with pre-tax income.
C)  the gap between rich and poor widens slightly if using after-tax income compared with pre-tax income.
D)  the gap between rich and poor widens greatly if using after-tax income compared with pre-tax income.E) A) and D)
F) A) and C)

Question 13

Poverty is found to be correlated with

Accepted Answer

A)  age and race but not family composition.
B)  race only.
C)  race and family composition but not age.
D)  age, race, and family composition.E) B) and C)
F) A) and B)

Question 14

Table 20-3
The Distribution of Income in Edgerton 
-Refer to Table 20-3. According to the table, what percent of families in Edgerton have income levels below $44,000?

Accepted Answer

A)  80 percent
B)  60 percent
C)  50 percent
D)  40 percentE) A) and C)
F) A) and B)

Question 15

People can borrow and lend money to smooth out short term variations in income known as what kind of changes?

Accepted Answer

The answer of People can borrow and lend money to...

Question 16

"The government should punish crimes and enforce voluntary agreements but not redistribute income." This statement is most closely associated with which political philosophy?

Accepted Answer

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

Question 17

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 C)
F) A) and B)

Question 18

Which of the following statements is correct?

Accepted Answer

A)  Followers of the liberalism political philosophy believe that society should maximize the total of individual utilities.
B)  The poverty line is adjusted for regional differences in the costs of raising children.
C)  One advantage to the Earned Income Tax Credit (EIT
C)   is that it benefits the working poor.
D)  Libertarians pursue policies to redistribute income from the rich to the poor.E) A) and B)
F) A) and C)

Question 19

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. Which race shows the least equal distribution of income?

Accepted Answer

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

Question 20

In 2011, the top 20% of US families had more than times as much income as the bottom 20%.

Accepted Answer

The answer of In 2011, the top 20% of US...

Exam 20: Income Inequality and Poverty

People can borrow and lend money to smooth out short term variations in income known as what kind of changes?

Correct Answer
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Correct Answer
verified

In 2011, the top 20% of US families had more than times as much income as the bottom 20%.

Correct Answer
verified

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. Which race shows the least equal distribution of income?

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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Which political philosophy concludes that equality of opportunities is more important than equality of outcomes?

Correct Answer
verified

In a typical 10-year period, about one in four families falls below the poverty line in at least one year. What percentage of families are poor for eight or more years?

Correct Answer
verified

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

Correct Answer
verified

Poverty is found to be correlated with

Correct Answer
verified

A common criticism of welfare programs is that they

Correct Answer
verified

The poverty line in the country of Inequalia is $10,000. The distribution of income for Inequalia is as follows: The poverty rate in Inequalia is

Correct Answer
verified

Table 20-3 The Distribution of Income in Edgerton -Refer to Table 20-3. According to the table, what percent of families in Edgerton have income levels below $44,000?

Correct Answer
verified

The study by economists Cox and Alm found

Correct Answer
verified

In-kind transfers are transfers to the poor

Correct Answer
verified

A system in which anyone collecting antipoverty program benefits must accept a government-provided job is called .

Correct Answer
verified

Table 20-13 The following table shows the distribution of income in Widgetapolis. -Refer to Table 20-13. If the poverty rate is 19%, where is the poverty line in Widgetapolis?

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

"The government should punish crimes and enforce voluntary agreements but not redistribute income." This statement is most closely associated with which political philosophy?

Correct Answer
verified

The 2011 U.S. distribution of income shows that the top 20 percent of families have approximately what share of income?

Correct Answer
verified

Exam 20: Income Inequality and Poverty

People can borrow and lend money to smooth out short term variations in income known as what kind of changes?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

In 2011, the top 20% of US families had more than times as much income as the bottom 20%.

Correct AnswerverifiedShow Answer

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. Which race shows the least equal distribution of income?

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

Which political philosophy concludes that equality of opportunities is more important than equality of outcomes?

Correct AnswerverifiedShow Answer

In a typical 10-year period, about one in four families falls below the poverty line in at least one year. What percentage of families are poor for eight or more years?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Poverty is found to be correlated with

Correct AnswerverifiedShow Answer

A common criticism of welfare programs is that they

Correct AnswerverifiedShow Answer

The poverty line in the country of Inequalia is $10,000. The distribution of income for Inequalia is as follows: The poverty rate in Inequalia is

Correct AnswerverifiedShow Answer

Table 20-3 The Distribution of Income in Edgerton -Refer to Table 20-3. According to the table, what percent of families in Edgerton have income levels below $44,000?

Correct AnswerverifiedShow Answer

The study by economists Cox and Alm found

Correct AnswerverifiedShow Answer

In-kind transfers are transfers to the poor

Correct AnswerverifiedShow Answer

A system in which anyone collecting antipoverty program benefits must accept a government-provided job is called .

Correct AnswerverifiedShow Answer

Table 20-13 The following table shows the distribution of income in Widgetapolis. ​ -Refer to Table 20-13. If the poverty rate is 19%, where is the poverty line in Widgetapolis?

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

"The government should punish crimes and enforce voluntary agreements but not redistribute income." This statement is most closely associated with which political philosophy?

Correct AnswerverifiedShow Answer

The 2011 U.S. distribution of income shows that the top 20 percent of families have approximately what share of income?

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Table 20-13 The following table shows the distribution of income in Widgetapolis. -Refer to Table 20-13. If the poverty rate is 19%, where is the poverty line in Widgetapolis?

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

Correct Answer
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Correct Answer
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