Question 1

The government's method of calculating the official poverty rate

Accepted Answer

A) Does not take into account differences in the cost of living in different parts of the country 
B) Does not account for the value of in-kind benefits received by poor families 
C) Is based on pre-tax household income 
D) Does all of the above 
E) Does none of the above 
A) Does not take into account differences in the cost of living in different parts of the country 
B) Does not account for the value of in-kind benefits received by poor families 
C) Is based on pre-tax household income 
D) Does all of the above 
E) Does none of the above

Question 2

A government transfer payment is a payment for which no goods or services are rendered by the person receiving it.

Accepted Answer

A) True 
 B)False

Question 3

An advantage of replacing all income-support programs with a negative income tax is that

Accepted Answer

A) It discourages low-income workers from working more 
B) Households with income above the poverty threshold pay positive taxes 
C) It is more difficult to administer than other antipoverty programs 
D) Households lose benefits when they choose to work 
E) All of the above 
A) It discourages low-income workers from working more 
B) Households with income above the poverty threshold pay positive taxes 
C) It is more difficult to administer than other antipoverty programs 
D) Households lose benefits when they choose to work 
E) All of the above

Question 4

Relative poverty will always exist in a market-based economy.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A)  The EITC is a non-refundable credit that can be claimed by poor families with children 
B)  The EITC lifts many people out of poverty, but it does not change official poverty rates 
C)  The EITC is a true negative income tax scheme 
D)  The EITC was introduced as part of the welfare reform measures enacted during the mid-1990s 
E)  None of the above 
A)  The EITC is a non-refundable credit that can be claimed by poor families with children 
B)  The EITC lifts many people out of poverty, but it does not change official poverty rates 
C)  The EITC is a true negative income tax scheme 
D)  The EITC was introduced as part of the welfare reform measures enacted during the mid-1990s 
E)  None of the above

Question 6

Family income in the United States has become more equal over the last forty years.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following effects creates an incentive for poor workers to reduce their hours of work when they receive cash assistance?

Accepted Answer

A) Income 
B) Substitution 
C) Lorenz 
D) Supply 
E) Welfare 
A) Income 
B) Substitution 
C) Lorenz 
D) Supply 
E) Welfare

Question 8

The primary objectives of the food stamp program are to improve the diets of low-income families and to increase the demand for food products.

Accepted Answer

A) True 
 B)False

Question 9

A government transfer payment is a payment

Accepted Answer

A) Made to transfer workers form one area to another 
B) To a person NOT in return for goods or services 
C) Made to a person who works for the government 
D) For roads built by the government 
E) Made to move troops from one combat area to another 
A) Made to transfer workers form one area to another 
B) To a person NOT in return for goods or services 
C) Made to a person who works for the government 
D) For roads built by the government 
E) Made to move troops from one combat area to another

Question 10

Income support programs designed to alleviate poverty have mitigated the economic hardship of low-income families and individuals.

Accepted Answer

A) True 
 B)False

Question 11

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 the negative income tax rate were reduced from 50% to 40% while the guaranteed income level is held constant,the cost of the plan would

Accepted Answer

A) Increase 
B) Decrease by more than 10% 
C) Decrease by 10% 
D) Not change 
E) Not be able to be determined 
A) Increase 
B) Decrease by more than 10% 
C) Decrease by 10% 
D) Not change 
E) Not be able to be determined

Question 12

Which of the following statements about the new welfare system is false?

Accepted Answer

A) Recipients have no time limits on how long they can receive income support 
B) In general,non-citizens do not qualify for most public support programs 
C) Single mothers must help officials identify the fathers of their dependent children 
D) Time limits are imposed on the receipt of food stamps 
E) States determine if TANF recipients qualify for Medicaid assistance 
A) Recipients have no time limits on how long they can receive income support 
B) In general,non-citizens do not qualify for most public support programs 
C) Single mothers must help officials identify the fathers of their dependent children 
D) Time limits are imposed on the receipt of food stamps 
E) States determine if TANF recipients qualify for Medicaid assistance

Question 13

Income support programs have

Accepted Answer

A) Had no effect in alleviating the problem of poverty 
B) Provided a minimum level of income to millions of people 
C) Been completely unsuccessful 
D) Actually led to increased poverty 
E) Done none of the above 
A) Had no effect in alleviating the problem of poverty 
B) Provided a minimum level of income to millions of people 
C) Been completely unsuccessful 
D) Actually led to increased poverty 
E) Done none of the above

Question 14

Under the TANF program,most welfare recipients are required to work after two years of assistancE.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following problems arise from the Earned Income Tax Credit (EITC)?

Accepted Answer

A)  In the phase-out range of income, workers may experience a disincentive to work 
B)  The EITC may cause some households to falsely claim the refundable credit 
C)  It is too complicated and cumbersome 
D)  All of the above 
E)  None of the above 
A)  In the phase-out range of income, workers may experience a disincentive to work 
B)  The EITC may cause some households to falsely claim the refundable credit 
C)  It is too complicated and cumbersome 
D)  All of the above 
E)  None of the above

Question 16

The primary source of an individual's desire to discriminate is personal prejudicE.

Accepted Answer

A) True 
 B)False

Question 17

Most government transfer payments go to families that live in poverty.

Accepted Answer

A) True 
 B)False

Question 18

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.
-The guaranteed annual income level assured each family,regardless of the amount of income earned by the family is

Accepted Answer

A) $0 
B) $1,500 
C) $2,500 
D) $5,000 
E) $7,500 
A) $0 
B) $1,500 
C) $2,500 
D) $5,000 
E) $7,500

Question 19

The percentage of the U.S.population living in poverty

Accepted Answer

A) Shows a long-term increase 
B) Is holding steady over the long run 
C) Is not a serious economic problem 
D) Decreased significantly in the past decade 
E) Fluctuates dramatically from year to year 
A) Shows a long-term increase 
B) Is holding steady over the long run 
C) Is not a serious economic problem 
D) Decreased significantly in the past decade 
E) Fluctuates dramatically from year to year

Question 20

Which of the following is charged with enforcing the federal government's anti-discrimination laws?

Accepted Answer

A) The OFCC 
B) The Bureau of Labor Statistics 
C) The U.S.Department of Justice 
D) The EEOC 
E) The U.S.Senate 
A) The OFCC 
B) The Bureau of Labor Statistics 
C) The U.S.Department of Justice 
D) The EEOC 
E) The U.S.Senate

The government's method of calculating the official poverty rate

A government transfer payment is a payment for which no goods or services are rendered by the person receiving it.

An advantage of replacing all income-support programs with a negative income tax is that

Relative poverty will always exist in a market-based economy.

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

Family income in the United States has become more equal over the last forty years.

Which of the following effects creates an incentive for poor workers to reduce their hours of work when they receive cash assistance?

The primary objectives of the food stamp program are to improve the diets of low-income families and to increase the demand for food products.

A government transfer payment is a payment

Income support programs designed to alleviate poverty have mitigated the economic hardship of low-income families and individuals.

Which of the following statements about the new welfare system is false?

Income support programs have

Under the TANF program,most welfare recipients are required to work after two years of assistancE.

Which of the following problems arise from the Earned Income Tax Credit (EITC)?

The primary source of an individual's desire to discriminate is personal prejudicE.

Most government transfer payments go to families that live in poverty.

The percentage of the U.S.population living in poverty

Which of the following is charged with enforcing the federal government's anti-discrimination laws?

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 government's method of calculating the official poverty rate

A government transfer payment is a payment for which no goods or services are rendered by the person receiving it.

An advantage of replacing all income-support programs with a negative income tax is that

Relative poverty will always exist in a market-based economy.

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

Family income in the United States has become more equal over the last forty years.

Which of the following effects creates an incentive for poor workers to reduce their hours of work when they receive cash assistance?

The primary objectives of the food stamp program are to improve the diets of low-income families and to increase the demand for food products.

A government transfer payment is a payment

Income support programs designed to alleviate poverty have mitigated the economic hardship of low-income families and individuals.

Which of the following statements about the new welfare system is false?

Income support programs have

Under the TANF program,most welfare recipients are required to work after two years of assistancE.

Which of the following problems arise from the Earned Income Tax Credit (EITC)?

The primary source of an individual's desire to discriminate is personal prejudicE.

Most government transfer payments go to families that live in poverty.

The percentage of the U.S.population living in poverty

Which of the following is charged with enforcing the federal government's anti-discrimination laws?

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