Question 1

Transfers reduce work effort because they reduce the opportunity cost of leisure.

Accepted Answer

A) True 
 B)False

Question 2

In general, the greater the break-even net income relative to the poverty threshold, the greater the target efficiency of a program.

Accepted Answer

A) True 
 B)False

Question 3

Suppose the basic benefit is $250 and the benefit reduction rate is 20 percent. What is the break-even net income?

Accepted Answer

The break-even net income can

Question 4

The lack of affordable childcare can significantly hinder the labor market participation of adults in poor families. Which of the following are provided by federal and state governments to provide childcare assistance?

Accepted Answer

A)  The Child and Dependent Care Tax Credit. 
B)  The Child Care and Development Fund. 
C)  The Child Tax Credit. 
D)  All of the above. 
A)  The Child and Dependent Care Tax Credit. 
B)  The Child Care and Development Fund. 
C)  The Child Tax Credit. 
D)  All of the above.

Question 5

The Child Tax Credit (CTC):

Accepted Answer

A)  is a federal government bloc grant that provides the states with money to help low-income working families pay for childcare. 
B)  is a federal program that allows an employer to provide up to $5,000 in assistance to employees to help them pay certain child and dependent care expenses, childcare included. 
C)  is provided by the federal government, and allows up to $500 per dependent child under age 17 for single taxpayers with income of $84,000 or less, and for married taxpayers with income of $119,000 or less. 
D)  is provided by about half of the state governments to provide a credit against income tax liability for childcare expenses for working taxpayers. 
A)  is a federal government bloc grant that provides the states with money to help low-income working families pay for childcare. 
B)  is a federal program that allows an employer to provide up to $5,000 in assistance to employees to help them pay certain child and dependent care expenses, childcare included. 
C)  is provided by the federal government, and allows up to $500 per dependent child under age 17 for single taxpayers with income of $84,000 or less, and for married taxpayers with income of $119,000 or less. 
D)  is provided by about half of the state governments to provide a credit against income tax liability for childcare expenses for working taxpayers.

Question 6

TANF households are limited to 5 years of support in a lifetime, but states may impose shorter lifetime limits.

Accepted Answer

A) True 
 B)False

Question 7

The public assistance program that likely has the most adverse effect on work effort is:

Accepted Answer

A)  TANF. 
B)  food stamps. 
C)  housing assistance. 
D)  Supplementary Security Income. 
A)  TANF. 
B)  food stamps. 
C)  housing assistance. 
D)  Supplementary Security Income.

Question 8

Congress, under the Family Support Act of 1988,

Accepted Answer

A)  required states to expand Medicaid coverage for up to 12 months for families leaving AFDC for work. 
B)  broke the direct link between eligibility for cash assistance and Medicaid. 
C)  provides coverage to all children younger than six living in families with incomes below 133 percent of the federal poverty level, once the TMA is exhausted. 
D)  All of the above. 
A)  required states to expand Medicaid coverage for up to 12 months for families leaving AFDC for work. 
B)  broke the direct link between eligibility for cash assistance and Medicaid. 
C)  provides coverage to all children younger than six living in families with incomes below 133 percent of the federal poverty level, once the TMA is exhausted. 
D)  All of the above.

Question 9

Labor market discrimination is a major factor in explaining why poverty is concentrated in some groups in society.

Accepted Answer

A) True 
 B)False

Question 10

Evaluate the following statement. Labor market discrimination has a significant impact on poverty rates in the United States.

Accepted Answer

The student should recognize that labor

Question 11

Policies aimed at reducing labor market discrimination would significantly reduce poverty in the United States.

Accepted Answer

A) True 
 B)False

Question 12

In-kind transfers refer to:

Accepted Answer

A)  cash payments made by government that can be used for any purpose. 
B)  transfer payments made by government that must be used for specific purposes. 
C)  transfers made by private charities such as the Salvation Army that provide money to poor households. 
D)  the large transfers made under the Social Security program to elderly individuals. 
A)  cash payments made by government that can be used for any purpose. 
B)  transfer payments made by government that must be used for specific purposes. 
C)  transfers made by private charities such as the Salvation Army that provide money to poor households. 
D)  the large transfers made under the Social Security program to elderly individuals.

Question 13

TANF recipients are not permitted to engage in work or "work activities," such as job training, looking for work, or schooling.

Accepted Answer

A) True 
 B)False

Question 14

Individuals in households headed by females are more likely to live in poverty because:

Accepted Answer

A)  family income generally falls as a result of divorce. 
B)  it may be difficult for a mother who has never been married to collect child support. 
C)  females generally have less education than males, and therefore may be able to obtain only low-paying jobs. 
D)  All of the above. 
A)  family income generally falls as a result of divorce. 
B)  it may be difficult for a mother who has never been married to collect child support. 
C)  females generally have less education than males, and therefore may be able to obtain only low-paying jobs. 
D)  All of the above.

Question 15

Problems with child support include the fact that:

Accepted Answer

A)  the size of the awards as a percentage of income vary greatly. 
B)  the process of setting the awards is relatively inexpensive. 
C)  new privacy laws make the awards difficult to collect. 
D)  All of the above. 
A)  the size of the awards as a percentage of income vary greatly. 
B)  the process of setting the awards is relatively inexpensive. 
C)  new privacy laws make the awards difficult to collect. 
D)  All of the above.

Question 16

Over the 1979-2008 period the government cash transfers:

Accepted Answer

A)  increased the average poverty rate by 3.5 percent. 
B)  increased the average poverty rate among older Americans. 
C)  increased the average poverty rate among female-headed households. 
D)  reduced the average poverty rate by 7.2 percent 
A)  increased the average poverty rate by 3.5 percent. 
B)  increased the average poverty rate among older Americans. 
C)  increased the average poverty rate among female-headed households. 
D)  reduced the average poverty rate by 7.2 percent

Transfers reduce work effort because they reduce the opportunity cost of leisure.

In general, the greater the break-even net income relative to the poverty threshold, the greater the target efficiency of a program.

Suppose the basic benefit is $250 and the benefit reduction rate is 20 percent. What is the break-even net income?

The lack of affordable childcare can significantly hinder the labor market participation of adults in poor families. Which of the following are provided by federal and state governments to provide childcare assistance?

The Child Tax Credit (CTC):

TANF households are limited to 5 years of support in a lifetime, but states may impose shorter lifetime limits.

The public assistance program that likely has the most adverse effect on work effort is:

Congress, under the Family Support Act of 1988,

Labor market discrimination is a major factor in explaining why poverty is concentrated in some groups in society.

Evaluate the following statement. Labor market discrimination has a significant impact on poverty rates in the United States.

Policies aimed at reducing labor market discrimination would significantly reduce poverty in the United States.

In-kind transfers refer to:

TANF recipients are not permitted to engage in work or "work activities," such as job training, looking for work, or schooling.

Individuals in households headed by females are more likely to live in poverty because:

Problems with child support include the fact that:

Over the 1979-2008 period the government cash transfers:

Economic Growth: an Introduction to Scarcity and Choice

An Introduction to Economic Systems and the Workings of the Price System

Competitive Markets and Government Policy: Agriculture

Efficiency in Resource Allocation: How Much Do We Have How Much Do We Want

Market Power: Does It Help or Hurt the Economy

Air Pollution: Balancing Benefits and Costs

Health Care: How Much for Whom

Crime and Drugs: a Modern Dilemma

College Education: Is It Worth the Cost

Educational Reform: the Role of Incentives and Choice

Tracking and Explaining the Macroeconomy

Unemployment: the Legacy of Recession, Technological Change, and Free Choice

Inflation: a Monetary Phenomenon

Sustained Budget Deficits: Is This Any Way to Run a Government

Social Security: Leading Issues and Approaches to Reform

International Trade: Beneficial, but Controversial

Financing Trade and the Trade Deficit

Filters

Exam 11: Poverty: Old and New Approaches to a Persistent Problem

Transfers reduce work effort because they reduce the opportunity cost of leisure.

In general, the greater the break-even net income relative to the poverty threshold, the greater the target efficiency of a program.

Suppose the basic benefit is $250 and the benefit reduction rate is 20 percent. What is the break-even net income?

The lack of affordable childcare can significantly hinder the labor market participation of adults in poor families. Which of the following are provided by federal and state governments to provide childcare assistance?

The Child Tax Credit (CTC):

TANF households are limited to 5 years of support in a lifetime, but states may impose shorter lifetime limits.

The public assistance program that likely has the most adverse effect on work effort is:

Congress, under the Family Support Act of 1988,

Labor market discrimination is a major factor in explaining why poverty is concentrated in some groups in society.

Evaluate the following statement. Labor market discrimination has a significant impact on poverty rates in the United States.

Policies aimed at reducing labor market discrimination would significantly reduce poverty in the United States.

In-kind transfers refer to:

TANF recipients are not permitted to engage in work or "work activities," such as job training, looking for work, or schooling.

Individuals in households headed by females are more likely to live in poverty because:

Problems with child support include the fact that:

Over the 1979-2008 period the government cash transfers:

Economic Growth: an Introduction to Scarcity and Choice

An Introduction to Economic Systems and the Workings of the Price System

Competitive Markets and Government Policy: Agriculture

Efficiency in Resource Allocation: How Much Do We Have How Much Do We Want

Market Power: Does It Help or Hurt the Economy

Air Pollution: Balancing Benefits and Costs

Health Care: How Much for Whom

Crime and Drugs: a Modern Dilemma

College Education: Is It Worth the Cost

Educational Reform: the Role of Incentives and Choice

Tracking and Explaining the Macroeconomy

Unemployment: the Legacy of Recession, Technological Change, and Free Choice

Inflation: a Monetary Phenomenon

Sustained Budget Deficits: Is This Any Way to Run a Government

Social Security: Leading Issues and Approaches to Reform

International Trade: Beneficial, but Controversial

Financing Trade and the Trade Deficit

Filters