Question 1

The poverty problem in the United States is essentially an income distribution problem.

Accepted Answer

A) True 
 B)False  True

Question 2

The incidence of poverty is highest among

Accepted Answer

A) Black families 
B) Families headed by a female 
C) Young families 
D) White families 
E) Small families 
A) Black families 
B) Families headed by a female 
C) Young families 
D) White families 
E) Small families B

Question 3

The aim of job creation programs is to increase the number of jobs for the poor and disadvantaged in private industry and government.

Accepted Answer

A) True 
 B)False  True

Question 4

Which of the following statements concerning the Earned Income Tax Credit (EITC)is false?

Accepted Answer

A) The EITC has significantly reduced official poverty rates in the U.S.since enacted in 1975 
B) If a family's tax liability is less than its EITC,the family will receive a check for the difference from the IRS 
C) The EITC is eventually phased out as family income increases 
D) More than 20 million American households now claim the EITC on tax returns each year 
E) None of the above 
A) The EITC has significantly reduced official poverty rates in the U.S.since enacted in 1975 
B) If a family's tax liability is less than its EITC,the family will receive a check for the difference from the IRS 
C) The EITC is eventually phased out as family income increases 
D) More than 20 million American households now claim the EITC on tax returns each year 
E) None of the above

Question 5

Which of the following factors contributes to wage differentials in our economy?

Accepted Answer

A) Workers exhibit different degrees of experience and skill 
B) Some workers are more productive than others 
C) The level of demand varies across markets for different products 
D) Prices of different products vary tremendously in a market economy 
E) All of the above 
A) Workers exhibit different degrees of experience and skill 
B) Some workers are more productive than others 
C) The level of demand varies across markets for different products 
D) Prices of different products vary tremendously in a market economy 
E) All of the above

Question 6

Skill levels vary among individuals because of

Accepted Answer

A) Differences in location 
B) Differences in education and training 
C) The industry the person works in 
D) The capital labor ratio in the economy 
E) All of the above 
A) Differences in location 
B) Differences in education and training 
C) The industry the person works in 
D) The capital labor ratio in the economy 
E) All of the above

Question 7

Major sources of discrimination include

Accepted Answer

A) Competitive markets 
B) Low wages 
C) Labor mobility 
D) Scarce labor market information 
E) All of the above 
A) Competitive markets 
B) Low wages 
C) Labor mobility 
D) Scarce labor market information 
E) All of the above

Question 8

Under a negative income tax,

Accepted Answer

A) Only the poor would receive negative taxes 
B) We would experience a loss in efficiency relative to the current public assistance programs 
C) The recipients of government subsidies are encouraged to earn income 
D) Both (a)and (c) 
E) All of the above 
A) Only the poor would receive negative taxes 
B) We would experience a loss in efficiency relative to the current public assistance programs 
C) The recipients of government subsidies are encouraged to earn income 
D) Both (a)and (c) 
E) All of the above

Question 9

Families are not eligible for the Earned Income Tax Credit (EITC)program when

Accepted Answer

A) Household income is greater than $34,700 
B) No one in the household works 
C) The household has no children 
D) The household receives Food Stamps 
E) The household owns its own home 
A) Household income is greater than $34,700 
B) No one in the household works 
C) The household has no children 
D) The household receives Food Stamps 
E) The household owns its own home

Question 10

Suppose that Group Z workers earn only 75% of what Group A workers earn.Discrimination is

Accepted Answer

A) Equal to 25% 
B) Equal to the portion of the gap created by differences in personal characteristics 
C) Equal to the portion of the gap that cannot be explained by productivity differences between the groups 
D) Readily apparent between the two groups 
E) Subject to a variety of different economic measurements 
A) Equal to 25% 
B) Equal to the portion of the gap created by differences in personal characteristics 
C) Equal to the portion of the gap that cannot be explained by productivity differences between the groups 
D) Readily apparent between the two groups 
E) Subject to a variety of different economic measurements

Question 11

Which of the following factors contribute to differences in labor resource ownership between people?

Accepted Answer

A) Unequal mental and physical genetic inheritances 
B) Differences in skills due to human capital investments 
C) Differences in attitudes toward working 
D) All of the above 
E) None of the above 
A) Unequal mental and physical genetic inheritances 
B) Differences in skills due to human capital investments 
C) Differences in attitudes toward working 
D) All of the above 
E) None of the above

Question 12

The Following Questions Refer to the information given below.
Suppose the government implements a negative income tax plan to deal with the poverty problem.The negative income tax rate is set at 50%,and the break-even level of income is set at $5,000.
-If a family earns $3,000 income,their disposable income is

Accepted Answer

A) $3,000 
B) $4,000 
C) $5,000 
D) $6,000 
E) $8,000 
A) $3,000 
B) $4,000 
C) $5,000 
D) $6,000 
E) $8,000

Question 13

The Social Security System makes payments to individuals over 65 years of age,on the basis of neeD.

Accepted Answer

A) True 
 B)False

Question 14

Most poor people are poor because they

Accepted Answer

A) Are lazy 
B) Are exploited 
C) Own resources that are not worth much 
D) Are old 
E) Are all of the above 
A) Are lazy 
B) Are exploited 
C) Own resources that are not worth much 
D) Are old 
E) Are all of the above

Question 15

The unequal distribution of income in the United States is due to an unequal distribution of resource ownership.

Accepted Answer

A) True 
 B)False

Question 16

Discrimination occurs because

Accepted Answer

A) Some people have the power to discriminate 
B) People are just not aware of it 
C) People have the desire to discriminate 
D) All of the above 
E) Only (a)and (c) 
A) Some people have the power to discriminate 
B) People are just not aware of it 
C) People have the desire to discriminate 
D) All of the above 
E) Only (a)and (c)

Question 17

Which of the following statements is true concerning income equality?

Accepted Answer

A) The share of income received by the top 5% remained declined between 1960 and 2000 
B) The share of income received by the top 5% increased by about 20% between 1960 and 2000 
C) The share of income received by the lower 20% of families increased significantly between 1960 and 2000 
D) The United States has achieved true income inequality 
E) None of the above 
A) The share of income received by the top 5% remained declined between 1960 and 2000 
B) The share of income received by the top 5% increased by about 20% between 1960 and 2000 
C) The share of income received by the lower 20% of families increased significantly between 1960 and 2000 
D) The United States has achieved true income inequality 
E) None of the above

Question 18

A number of reasons have been given to explain increasing income inequality in the US over the last few decades.One of these is

Accepted Answer

A) The decline of the US manufacturing sector 
B) The growth of unionization through the US 
C) Increases in tax rates on the wealthy 
D) Improvements in productivity 
E) The use of computers in the workplace 
A) The decline of the US manufacturing sector 
B) The growth of unionization through the US 
C) Increases in tax rates on the wealthy 
D) Improvements in productivity 
E) The use of computers in the workplace

Question 19

Critics have claimed that the EITC

Accepted Answer

A) Creates an incentive for families to have fewer children 
B) Causes poor families with children to pay more in taxes than poor families without children 
C) Creates a disincentive to work for those who find themselves in the phase-out range of income eligibility 
D) Distorts the economic incentives for poor families to work their way out of poverty 
E) Does none of the above 
A) Creates an incentive for families to have fewer children 
B) Causes poor families with children to pay more in taxes than poor families without children 
C) Creates a disincentive to work for those who find themselves in the phase-out range of income eligibility 
D) Distorts the economic incentives for poor families to work their way out of poverty 
E) Does none of the above

Question 20

In a private enterprise system a sound comprehensive antipoverty program must include measures to increase the productivity of the poor.

Accepted Answer

A) True 
 B)False

The poverty problem in the United States is essentially an income distribution problem.

The incidence of poverty is highest among

The aim of job creation programs is to increase the number of jobs for the poor and disadvantaged in private industry and government.

Which of the following statements concerning the Earned Income Tax Credit (EITC)is false?

Which of the following factors contributes to wage differentials in our economy?

Skill levels vary among individuals because of

Major sources of discrimination include

Under a negative income tax,

Families are not eligible for the Earned Income Tax Credit (EITC)program when

Suppose that Group Z workers earn only 75% of what Group A workers earn.Discrimination is

Which of the following factors contribute to differences in labor resource ownership between people?

The Social Security System makes payments to individuals over 65 years of age,on the basis of neeD.

Most poor people are poor because they

The unequal distribution of income in the United States is due to an unequal distribution of resource ownership.

Discrimination occurs because

Which of the following statements is true concerning income equality?

A number of reasons have been given to explain increasing income inequality in the US over the last few decades.One of these is

Critics have claimed that the EITC

In a private enterprise system a sound comprehensive antipoverty program must include measures to increase the productivity of the poor.

Alleviating Human Misery: The Role of Economic Reasoning

Economic Systems, Resource Allocation, and Social Well-Being: Lessons From Chinas Transition

Government Control of Prices in Mixed Systems: Who Are the Winners and Losers

Pollution Problems: Must We Foul Our Own Nests

Economics of Crime and Its Prevention: How Much Is Too Much

The Economics of Education: Crisis and Reform

The Economics of Monopoly Power: Can Markets Be Controlled

The Economics of Professional Sports: What Is the Real Score

Competition in the Global Market-Place: Should We Protect Ourselves From International Trade

Economic Growth: Why Is the Economic Road so Bumpy

Money,Banking and the Financial System: Old Problems With New Twists

Unemployment and Inflation: Can We Find a Balance

Government Spending,Taxation,and the National Debt: Who Wins and Who Loses

Social Security and Medicare: How Secure Is Our Safety Net for the Elderly

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Exam 7: Poverty Problems and Discrimination: Why Are so Many Still so Poor

The poverty problem in the United States is essentially an income distribution problem.

The incidence of poverty is highest among

The aim of job creation programs is to increase the number of jobs for the poor and disadvantaged in private industry and government.

Which of the following statements concerning the Earned Income Tax Credit (EITC)is false?

Which of the following factors contributes to wage differentials in our economy?

Skill levels vary among individuals because of

Major sources of discrimination include

Under a negative income tax,

Families are not eligible for the Earned Income Tax Credit (EITC)program when

Suppose that Group Z workers earn only 75% of what Group A workers earn.Discrimination is

Which of the following factors contribute to differences in labor resource ownership between people?

The Social Security System makes payments to individuals over 65 years of age,on the basis of neeD.

Most poor people are poor because they

The unequal distribution of income in the United States is due to an unequal distribution of resource ownership.

Discrimination occurs because

Which of the following statements is true concerning income equality?

A number of reasons have been given to explain increasing income inequality in the US over the last few decades.One of these is

Critics have claimed that the EITC

In a private enterprise system a sound comprehensive antipoverty program must include measures to increase the productivity of the poor.

Alleviating Human Misery: The Role of Economic Reasoning

Economic Systems, Resource Allocation, and Social Well-Being: Lessons From Chinas Transition

Government Control of Prices in Mixed Systems: Who Are the Winners and Losers

Pollution Problems: Must We Foul Our Own Nests

Economics of Crime and Its Prevention: How Much Is Too Much

The Economics of Education: Crisis and Reform

The Economics of Monopoly Power: Can Markets Be Controlled

The Economics of Professional Sports: What Is the Real Score

Competition in the Global Market-Place: Should We Protect Ourselves From International Trade

Economic Growth: Why Is the Economic Road so Bumpy

Money,Banking and the Financial System: Old Problems With New Twists

Unemployment and Inflation: Can We Find a Balance

Government Spending,Taxation,and the National Debt: Who Wins and Who Loses

Social Security and Medicare: How Secure Is Our Safety Net for the Elderly

Filters