Question 1

The poverty threshold is based on the amount that is needed to buy an adequate:

Accepted Answer

A)  home. 
B)  car. 
C)  amount of clothing. 
D)  amount of food. 
A)  home. 
B)  car. 
C)  amount of clothing. 
D)  amount of food.

Question 2

_____ is the unequal distribution of income among members of society that occurs when some individuals or households earn more than others.

Accepted Answer

A)  Financial inequality 
B)  Income inequality 
C)  Pay scale 
D)  Scaled income 
A)  Financial inequality 
B)  Income inequality 
C)  Pay scale 
D)  Scaled income

Question 3

_____ occurs when one household receives all the income in a society.

Accepted Answer

A)  Maximum income inequality 
B)  Perfect income equality 
C)  Equal income equality 
D)  Unequal income equality 
A)  Maximum income inequality 
B)  Perfect income equality 
C)  Equal income equality 
D)  Unequal income equality

Question 4

A reason that people in the bottom quintile may fail to move to a higher quintile is that they:

Accepted Answer

A)  are in dual-income households. 
B)  have specialized skills. 
C)  have a college degree. 
D)  are in single-parent households. 
A)  are in dual-income households. 
B)  have specialized skills. 
C)  have a college degree. 
D)  are in single-parent households.

Question 5

A reason that people in the bottom quintile may fail to move to a higher quintile is that they:

Accepted Answer

A)  are unable to work. 
B)  have specialized skills. 
C)  have a college degree. 
D)  are in dual-income households. 
A)  are unable to work. 
B)  have specialized skills. 
C)  have a college degree. 
D)  are in dual-income households.

Question 6

When implicit marginal tax rates are excessively _____, the marginal benefit from working additional hours is:

Accepted Answer

A)  high; high. 
B)  high; low. 
C)  low; low. 
D)  low; high. 
A)  high; high. 
B)  high; low. 
C)  low; low. 
D)  low; high.

Question 7

_____ is the ability of individuals or households to alter their economic status.

Accepted Answer

A)  Income inequality 
B)  Income mobility 
C)  Social equality 
D)  Social mobility 
A)  Income inequality 
B)  Income mobility 
C)  Social equality 
D)  Social mobility

Question 8

Maximum income inequality can be expressed with a:

Accepted Answer

A)  Gini coefficient of 0. 
B)  Lorenz coefficient of 0. 
C)  Gini coefficient of 1. 
D)  Lorenz coefficient of 1. 
A)  Gini coefficient of 0. 
B)  Lorenz coefficient of 0. 
C)  Gini coefficient of 1. 
D)  Lorenz coefficient of 1.

Question 9

The trend in the United States has been toward a wider gap in income inequality. Discuss some of the reasons for this gap.

Accepted Answer

Some of the factors widening the gap in

Question 10

Discuss the shortcomings in measuring the poverty rates.

Accepted Answer

First, although cash benefits are includ

Question 11

The Gini coefficient representing the highest level of inequality is:

Accepted Answer

A)  .136. 
B)  .235. 
C)  .536. 
D)  .963. 
A)  .136. 
B)  .235. 
C)  .536. 
D)  .963.

Question 12

Maximum income inequality occurs when:

Accepted Answer

A)  no one household receives all the income in a society. 
B)  one household receives all the income in a society. 
C)  all households receive equal income in a society. 
D)  all households receive unequal income in a society. 
A)  no one household receives all the income in a society. 
B)  one household receives all the income in a society. 
C)  all households receive equal income in a society. 
D)  all households receive unequal income in a society.

Question 13

The earned income tax credit is phased out at the point when earnings exceed:

Accepted Answer

A)  $53,930. 
B)  $43,930. 
C)  $33,930. 
D)  $23,000. 
A)  $53,930. 
B)  $43,930. 
C)  $33,930. 
D)  $23,000.

Question 14

What is the Gini coefficient, and how does it differ from poverty rate measurements?

Accepted Answer

The Gini coefficient is one of the most

Question 15

In 2016, the Gini coefficient in the United States was:

Accepted Answer

A)  0. 
B)  .464. 
C)  .5. 
D)  1. 
A)  0. 
B)  .464. 
C)  .5. 
D)  1.

Question 16

Discuss the issue of global poverty.

Accepted Answer

Global poverty is a challenging issue. L

Question 17

Government programs that provide social insurance against the risk of hardship due to poverty, unemployment, retirement, and health care are known as _____ programs.

Accepted Answer

A)  social insurance 
B)  federal conservation reserve 
C)  Habitat for Humanity 
D)  Peace Corps 
A)  social insurance 
B)  federal conservation reserve 
C)  Habitat for Humanity 
D)  Peace Corps

Question 18

A Gini coefficient of _____ means perfect income equality.

Accepted Answer

A)  0 
B)  .464 
C)  .5 
D)  1 
A)  0 
B)  .464 
C)  .5 
D)  1

Question 19

Income mobility is the ability of individuals or households to:

Accepted Answer

A)  move from one geographic location to another. 
B)  enlarge households. 
C)  change social classes. 
D)  alter their economic status. 
A)  move from one geographic location to another. 
B)  enlarge households. 
C)  change social classes. 
D)  alter their economic status.

Question 20

In 2017, for a married family of three, the earned income tax credit phases in by providing a tax credit of _____ for every dollar earned.

Accepted Answer

A)  $.25 
B)  $.35 
C)  $.45 
D)  $.55 
A)  $.25 
B)  $.35 
C)  $.45 
D)  $.55

Exam 18: The Distribution of Income

The poverty threshold is based on the amount that is needed to buy an adequate:

_____ is the unequal distribution of income among members of society that occurs when some individuals or households earn more than others.

_____ occurs when one household receives all the income in a society.

A reason that people in the bottom quintile may fail to move to a higher quintile is that they:

A reason that people in the bottom quintile may fail to move to a higher quintile is that they:

When implicit marginal tax rates are excessively _____, the marginal benefit from working additional hours is:

_____ is the ability of individuals or households to alter their economic status.

Maximum income inequality can be expressed with a:

The trend in the United States has been toward a wider gap in income inequality. Discuss some of the reasons for this gap.

Discuss the shortcomings in measuring the poverty rates.

The Gini coefficient representing the highest level of inequality is:

Maximum income inequality occurs when:

The earned income tax credit is phased out at the point when earnings exceed:

What is the Gini coefficient, and how does it differ from poverty rate measurements?

In 2016, the Gini coefficient in the United States was:

Discuss the issue of global poverty.

Government programs that provide social insurance against the risk of hardship due to poverty, unemployment, retirement, and health care are known as _____ programs.

A Gini coefficient of _____ means perfect income equality.

Income mobility is the ability of individuals or households to:

In 2017, for a married family of three, the earned income tax credit phases in by providing a tax credit of _____ for every dollar earned.

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