Question 1

When John F. Kennedy said, "A rising tide lifts all boats," to what was he referring?

Accepted Answer

A)   With government intervention, all citizens receive a greater allocation of resources.
B)   With market forces working independently, everyone receives an equitable share of resources.
C)   With economic growth, more families are pushed above the poverty line.
D)   None of the above are correct.E) C) and D)
F) A) and B)

Question 2

Table 20-14
Income Inequality in the United States
The values in the table reflect the percentages of pre-tax-and transfer income.
  Source: US Census Bureau
-Refer to Table 20-14. If the distribution of income were completely equal, what percentage of income would the bottom fifth of the population earn?

Accepted Answer

The answer of Table 20-14
Income Inequality in the United States
The...

Question 3

Which of the following statements is characteristic of utilitarianism?

Accepted Answer

A)   An extra dollar of income provides higher marginal utility to a poor person than to a rich person.
B)   Social policies should be created behind a "veil of ignorance."
C)   Society should strive to maximize the utility of its wealthiest member.
D)   Equality of opportunity is more important than equality of incomes.E) A) and B)
F) A) and C)

Question 4

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

Question 5

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 6

In the United States, a typical worker's income peaks around age

Accepted Answer

A)   70.
B)   60.
C)   50.
D)   40.E) A) and B)
F) B) and C)

Question 7

In 2011 the top 20% of income earners accounted for over 80% of all income received by United States' families.

Accepted Answer

A) True 
 B)False

Question 8

In 2011 the top 5 percent of income earners accounted for over 50% of all income received by United States' families.

Accepted Answer

A) True 
 B)False

Question 9

When the government enacts policies to make the distribution of income more equitable, it distorts incentives, alters behavior, and makes the allocation of resources less efficient.

Accepted Answer

A) True 
 B)False

Question 10

Which two of the Ten Principles of Economics are illustrated 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 B)
F) A) and D)

Question 11

Economic mobility in the United States is so great that fewer than

Accepted Answer

A)   3 percent of families are poor for 8 or more years.
B)   5 percent of families are poor for 8 or more years.
C)   8 percent of families are poor for 8 or more years.
D)   10 percent of families are poor for 8 or more years.E) None of the above
F) A) and D)

Question 12

Assume that the government proposes a negative income tax that calculates taxes owed by the formula, Taxes Owed = (a  Income) - b. A family with an income of $40,000 pays $5,000 in taxes, and a family with an income of $12,000 receives an income subsidy of $2,000.
a. What is the value for "a"?
b. What is the value for "b"?
c. What is the tax liability of a family with an income of $50,000?
d. At what level of income will a family neither pay taxes, nor receive an income subsidy?

Accepted Answer

Answer :
a. 0.25 or...

Question 13

Which of the following is not correct?

Accepted Answer

A)   A negative income tax only applies to working people, so it encourages people to get full-time work.
B)   Supporters advocate the use of the Earned Income Tax Credit as a way to help the working poor.
C)   A negative income tax subsidizes the incomes of poor people.
D)   An advantage of a negative income tax is that it is not based on the number of children, so it does not provide incentives for unmarried women to have children.E) None of the above
F) B) and D)

Question 14

Temporary Assistance for Needy Families (TANF) and Supplemental Security Income (SSI) are examples of .

Accepted Answer

The answer of Temporary Assistance for Needy Families (TANF) and...

Question 15

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) B) and D)
F) B) and C)

Question 16

In the United States, long-term poverty affects

Accepted Answer

A)   more families than short-term poverty.
B)   an equal number of families as short-term poverty.
C)   slightly fewer families than short-term poverty.
D)   many fewer families than short-term poverty.E) A) and B)
F) A) and C)

Question 17

Which of the following is not correct?

Accepted Answer

A)   Poverty is long-term problem for relatively few families.
B)   Measurements of income inequality usually do not include in-kind transfers.
C)   Measurements of income inequality use lifetime incomes rather than annual incomes.
D)   Measurements of income inequality would be more meaningful if they reflected permanent rather than current income.E) A) and D)
F) B) and C)

Exam 20: Income Inequality and Poverty

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

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

Correct Answer
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Answer :
a. 0.25 or...
View Answer

Economic mobility in the United States is so great that fewer than

Correct Answer
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Which two of the Ten Principles of Economics are illustrated in this chapter?

Correct Answer
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When the government enacts policies to make the distribution of income more equitable, it distorts incentives, alters behavior, and makes the allocation of resources less efficient.

Correct Answer
verified

Which of the following statements is characteristic of utilitarianism?

Correct Answer
verified

In the United States, a typical worker's income peaks around age

Correct Answer
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In 2011 the top 20% of income earners accounted for over 80% of all income received by United States' families.

Correct Answer
verified

In 2011 the top 5 percent of income earners accounted for over 50% of all income received by United States' families.

Correct Answer
verified

Which of the following is not correct?

Correct Answer
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Which of the following is not correct?

Correct Answer
verified

When John F. Kennedy said, "A rising tide lifts all boats," to what was he referring?

Correct Answer
verified

In the United States, long-term poverty affects

Correct Answer
verified

Minimum wage laws

Correct Answer
verified

Temporary Assistance for Needy Families (TANF) and Supplemental Security Income (SSI) are examples of .

Correct Answer
verified

Exam 20: Income Inequality and Poverty

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedAnswer : a. 0.25 or...View AnswerShow Answer

Economic mobility in the United States is so great that fewer than

Correct AnswerverifiedShow Answer

Which two of the Ten Principles of Economics are illustrated in this chapter?

Correct AnswerverifiedShow Answer

When the government enacts policies to make the distribution of income more equitable, it distorts incentives, alters behavior, and makes the allocation of resources less efficient.

Correct AnswerverifiedShow Answer

Which of the following statements is characteristic of utilitarianism?

Correct AnswerverifiedShow Answer

In the United States, a typical worker's income peaks around age

Correct AnswerverifiedShow Answer

In 2011 the top 20% of income earners accounted for over 80% of all income received by United States' families.

Correct AnswerverifiedShow Answer

In 2011 the top 5 percent of income earners accounted for over 50% of all income received by United States' families.

Correct AnswerverifiedShow Answer

Which of the following is not correct?

Correct AnswerverifiedShow Answer

Which of the following is not correct?

Correct AnswerverifiedShow Answer

When John F. Kennedy said, "A rising tide lifts all boats," to what was he referring?

Correct AnswerverifiedShow Answer

In the United States, long-term poverty affects

Correct AnswerverifiedShow Answer

Minimum wage laws

Correct AnswerverifiedShow Answer

Temporary Assistance for Needy Families (TANF) and Supplemental Security Income (SSI) are examples of .

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified
Answer :
a. 0.25 or...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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