Question 1

Which of the following is an example of a social insurance program in the United States?

Accepted Answer

A)  Police
B)  Social Security
C)  Progressive taxation
D)  All of these are examples of social insurance programs.E) A) and C)
F) A) and B)

Question 2

Which of the following countries has higher income mobility than the United States?

Accepted Answer

A)  Canada
B)  Japan
C)  Denmark
D)  All of these countries have higher income mobility than the United States.E) A) and C)
F) A) and D)

Question 3

Since the 1950s, the U.S. poverty rate has:

Accepted Answer

A)  been steadily declining by a few percentage points each decade.
B)  dropped to nearly zero.
C)  dropped by approximately half.
D)  increased briefly but then returned to 1950s levels.E) A) and C)
F) A) and B)

Question 4

To measure income mobility in relative terms, we would measure whether a person's income:

Accepted Answer

A)  is higher or lower than their parents' income.
B)  places them higher or lower in the income distribution than their parents.
C)  rises as the retirement age is approached.
D)  places them higher or lower in the income distribution than work peers.E) B) and C)
F) B) and D)

Question 5

Temporary Assistance to Needy Families is a government program with the goal of:

Accepted Answer

A)  redistribution.
B)  economic growth.
C)  social insurance.
D)  increasing in-kind transfers.E) None of the above
F) A) and B)

Question 6

Suppose you live in a society with perfect income mobility. This implies that: the income of one's parents has no influence over one's place in the income distribution in adulthood. the probability of ending up in the 90th percentile of the income distribution is higher than the probability of ending up in the 10th percentile of the income distribution. the Gini coefficient is 1.

Accepted Answer

A)  I only
B)  II only
C)  I and III only
D)  II and III onlyE) B) and C)
F) None of the above

Question 7

A perfectly straight Lorenz curve would indicate perfect _______, which _______.

Accepted Answer

A)  inequality; does not exist in the real world
B)  equality; does not exist in the real world
C)  equality; is more common in wealthy, developed nations
D)  inequality; is more common among developing nationsE) A) and C)
F) B) and D)

Question 8

Temporary Assistance to Needy Families (TANF) is:

Accepted Answer

A)  an unconditional cash-transfer program.
B)  a conditional cash-transfer program.
C)  more redistributive than social insurance.
D)  provided long term to help people in chronic poverty.E) C) and D)
F) A) and B)

Question 9

Research from the United States has suggested that _______ of the people living under the poverty line in any given year were chronically poor.

Accepted Answer

A)  a small percentage
B)  about half
C)  a large percentage
D)  almost allE) A) and C)
F) A) and D)

Question 10

The absolute poverty line indicates _______ while the relative poverty line indicates _______.

Accepted Answer

A)  who cannot afford the basic necessities; what people can afford compared to those around them
B)  what people can afford compared to those around them; who cannot afford the basic necessities
C)  the percentage of the population that falls within the lowest quartile of income earners; the percentage of the population that earns 40 percent less than the median income
D)  the percentage of the population that falls within the lowest quartile of income earners; what people can afford compared to those around themE) C) and D)
F) A) and D)

Question 11

Which of the following is an example of a common in-kind transfer?

Accepted Answer

A)  Social Security
B)  Medicare
C)  Public housing
D)  Unemployment insuranceE) None of the above
F) All of the above

Question 12

The relative poverty line defines poverty:

Accepted Answer

A)  in relation to the income of the rest of the population.
B)  based on the expenditure on food relative to total income.
C)  as the price of basic food, clothing, shelter, and utilities and adjusts for geographic differences in the cost of living.
D)  None of these are true.E) B) and C)
F) A) and C)

Question 13

Human capital can be acquired by:

Accepted Answer

A)  getting an education.
B)  investing in health care.
C)  gaining job experience.
D)  All of these are true.E) C) and D)
F) B) and C)

Question 14

Which region experienced the smallest change in its poverty rate over the last 25 years?

Accepted Answer

A)  China
B)  South Asia
C)  India
D)  Sub-Saharan AfricaE) A) and D)
F) C) and D)

Question 15

In the United States, the official poverty line is based on:

Accepted Answer

A)  the price of housing.
B)  the price of clothing.
C)  the price of food.
D)  the average income of the lowest quartile of income earners.E) A) and B)
F) A) and C)

Question 16

Critics of the U.S. definition of poverty claim that it is set too _______, because food prices are _______ relative to the prices of other essential goods and services.

Accepted Answer

A)  low; low
B)  high; high
C)  low; high
D)  high; lowE) A) and C)
F) B) and D)

Question 17

One of the biggest challenges facing the world's poorest families is:

Accepted Answer

A)  they don't save any money to pay down debts.
B)  their income fluctuates a lot, in addition to being low.
C)  they often do not diversify their savings and have "all their eggs in one basket".
D)  surrounding countries have higher economic growth.E) None of the above
F) A) and B)

Question 18

Creating effective policy to fight poverty requires an understanding of:

Accepted Answer

A)  why people are poor.
B)  the correlation between education and income.
C)  the correlation between income and geographic location.
D)  the unintended consequences of reductions in the incentive to work.E) B) and C)
F) None of the above

Question 19

Which of the following is true about the trade-off between efficiency and equity that is present in many anti-poverty policies? Efficiency is reduced due to the deadweight loss of taxation. Equity is increased through reductions in income inequality. Efficiency is reduced when consumers adjust their behavior in response to eligibility requirements.

Accepted Answer

A)  I and III only
B)  I and II only
C)  II only
D)  I, II, and IIIE) A) and D)
F) A) and C)

Question 20

Means-tested government programs:

Accepted Answer

A)  require recipients to undergo skills testing for benefits.
B)  define eligibility for benefits based on recipients' income.
C)  are as effective as unconditional cash-transfers.
D)  are rarely used in the United States.E) None of the above
F) A) and B)

Exam 21: Poverty, Inequality, and Discrimination

Human capital can be acquired by:

Correct Answer
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One of the biggest challenges facing the world's poorest families is:

Correct Answer
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Correct Answer
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Research from the United States has suggested that _______ of the people living under the poverty line in any given year were chronically poor.

Correct Answer
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Temporary Assistance to Needy Families (TANF) is:

Correct Answer
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Since the 1950s, the U.S. poverty rate has:

Correct Answer
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Which of the following countries has higher income mobility than the United States?

Correct Answer
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To measure income mobility in relative terms, we would measure whether a person's income:

Correct Answer
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Critics of the U.S. definition of poverty claim that it is set too _, because food prices are _ relative to the prices of other essential goods and services.

Correct Answer
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Which region experienced the smallest change in its poverty rate over the last 25 years?

Correct Answer
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Temporary Assistance to Needy Families is a government program with the goal of:

Correct Answer
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Means-tested government programs:

Correct Answer
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In the United States, the official poverty line is based on:

Correct Answer
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The absolute poverty line indicates _ while the relative poverty line indicates _.

Correct Answer
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Which of the following is an example of a social insurance program in the United States?

Correct Answer
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Which of the following is an example of a common in-kind transfer?

Correct Answer
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The relative poverty line defines poverty:

Correct Answer
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Creating effective policy to fight poverty requires an understanding of:

Correct Answer
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Correct Answer
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A perfectly straight Lorenz curve would indicate perfect _, which _.

Correct Answer
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Exam 21: Poverty, Inequality, and Discrimination

Human capital can be acquired by:

Correct AnswerverifiedShow Answer

One of the biggest challenges facing the world's poorest families is:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Research from the United States has suggested that _______ of the people living under the poverty line in any given year were chronically poor.

Correct AnswerverifiedShow Answer

Temporary Assistance to Needy Families (TANF) is:

Correct AnswerverifiedShow Answer

Since the 1950s, the U.S. poverty rate has:

Correct AnswerverifiedShow Answer

Which of the following countries has higher income mobility than the United States?

Correct AnswerverifiedShow Answer

To measure income mobility in relative terms, we would measure whether a person's income:

Correct AnswerverifiedShow Answer

Critics of the U.S. definition of poverty claim that it is set too _______, because food prices are _______ relative to the prices of other essential goods and services.

Correct AnswerverifiedShow Answer

Which region experienced the smallest change in its poverty rate over the last 25 years?

Correct AnswerverifiedShow Answer

Temporary Assistance to Needy Families is a government program with the goal of:

Correct AnswerverifiedShow Answer

Means-tested government programs:

Correct AnswerverifiedShow Answer

In the United States, the official poverty line is based on:

Correct AnswerverifiedShow Answer

The absolute poverty line indicates _______ while the relative poverty line indicates _______.

Correct AnswerverifiedShow Answer

Which of the following is an example of a social insurance program in the United States?

Correct AnswerverifiedShow Answer

Which of the following is an example of a common in-kind transfer?

Correct AnswerverifiedShow Answer

The relative poverty line defines poverty:

Correct AnswerverifiedShow Answer

Creating effective policy to fight poverty requires an understanding of:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A perfectly straight Lorenz curve would indicate perfect _______, which _______.

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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Correct Answer
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Correct Answer
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Critics of the U.S. definition of poverty claim that it is set too _, because food prices are _ relative to the prices of other essential goods and services.

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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The absolute poverty line indicates _ while the relative poverty line indicates _.

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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A perfectly straight Lorenz curve would indicate perfect _, which _.

Correct Answer
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