Deck 11: Economic Stress and Families

Question 1

A longitudinal study of children of the Great Depression published in the 1970s linked economic hardship to the ______.

A) introduction of anti-child labor laws
B) sudden increase in family size
C) sedimentation of racial inequality
D) reorganization of family roles and responsibilities

Answer 1

D

Question 2

Economic stress resulting from the birth of a baby is considered ______.

A) diffused
B) situational
C) normative
D) nonnormative

Answer 2

C

Question 3

Karen is diagnosed with breast cancer. The health care she receives causes economic stress for her family. What kind of stress is this?

A) diffused
B) targeted
C) normative
D) nonnormative

Answer 3

D

Question 4

The past decade has seen a rise in ______, which include(s) freelance, independent work that pays a person by a task or project.

A) structural poverty
B) the gig economy
C) low-earning appointments
D) entry-level jobs

Question 5

Median family income ______.

A) the range of family income across the United States is a more valuable measure
B) counts cash income as well as other assets
C) is distorted by outliers
D) fails to consider noncash assets

Question 6

A family's net worth is determined based on their ______.

A) assets minus liabilities
B) prior year's tax return
C) their current year's tax return
D) their income minus their expenses

Question 7

Home ownership is ______.

A) important because it helps families build wealth
B) a burden because of foreclosure risk
C) only associated with benefits for the wealthy
D) a luxury that seldom increases family well-being

Question 8

Of the following, ______ threaten(s) the financial stability of families the most.

A) school loans
B) mortgages
C) credit card debt
D) therapy bills

Question 9

In 2016, ______ of households had some type of debt.

A) 100%
B) 93%
C) 85%
D) 77%

Question 10

The importance of savings is greater than ever because ______.

A) there are many more technological products crucial to daily life, and they are expensive
B) families are becoming larger and are therefore more expensive to maintain
C) higher education is so much more expensive, and so parents need to start saving right from their child's birth
D) benefits like pensions, health care, and retirement contributions are decreasing

Question 11

The ______ model is associated with the prediction that economic hardships will lead to adverse changes in personal mental health, marital quality, and parenting for children and families.

A) family economic stress
B) family financial hardship
C) stress-induced economic hardship
D) ABC-X of economic stress

Question 12

Economic stress in the family manifests itself directly by ______ and indirectly by ______

A) likelihood to file for bankruptcy; the rise of health issues
B) influencing individual well-being; influencing family interactions
C) influencing family vacations; influencing family budgets
D) promoting arguments; promoting divorce

Question 13

The family economic stress model indicates that ______.

A) a couple's premarital wealth impacts the quality of relationship, which predicts marital stability
B) a couple's premarital wealth only impacts marital stability if one of the couple has significantly less to contribute than the other
C) a couple's hard economic circumstances increase financial strain, which increases psychological distress, which in turn negatively impacts marital stability
D) a couple's contributions to the family's wealth impacts the financial stability, which in turn impacts the couple's marital stability

Question 14

Overall, economic stress contributes to ______.

A) primarily the father's negative health and mental health outcomes
B) primarily the mother's negative health and mental health outcomes
C) primarily the children's health and mental health outcomes
D) the entire family's negative health and mental health outcomes

Question 15

If families are adaptable, cohesive, and have strong communication skills,______.

A) the impact of economic hardship is more manageable
B) they are less likely to experience economic hardships
C) their life savings will be higher than those with fewer coping skills
D) they will be less resilient

Question 16

Mr. and Mrs. Ramirez are 65 and have decided to retire. They have worked hard their whole lives and saved every penny so that they could have a comfortable retirement. Further, they have accumulated the resources to leave behind money for their family when they pass away. This most closely describes which phase of the family economic life cycle?

A) Phase I
B) Phase II
C) Phase III
D) Phase IV

Question 17

The Thompsons are just starting out. Mr. Thompson relied heavily on his credit cards to get through his last year of graduate school and to pay for childcare for their 2-year-old daughter. Mrs. Thompson worked full-time and paid the mortgage and the monthly bills. Their style of managing their economic situation is to take it as it comes. The Thompsons are ______.

A) in Phase I of the economic life cycle and will most likely experience higher levels of economic stress because they don't have plans to save
B) in Phase II of the economic life cycle and will most likely have a secure financial future
C) in Phase III of the economic life cycle and are ready to begin saving for retirement because they are at their peak earning years
D) are not in a phase of the economic life cycle yet because one of them is unemployed

Question 18

As families struggle to retire the debt they have accumulated in the formation stage, families with children may encounter significant additional educational expenses as offspring approach college age. This is typical of ______ of the economic life cycle.

A) Phase I
B) Phase II
C) Phase III
D) Phase IV

Question 19

Mandy has an MSW and worked for a local agency that serves a population of older adults. She always took on projects with enthusiasm and knows that she can accomplish the jobs she takes on. Her program funding was cut, and she lost her job with only 2 days' notice. The agency is sorry but cannot offer her another position. According to research on coping, which statement best applies to Mandy's situation? Mandy will ______.

A) have difficulties coping with this situation because she never developed resilience
B) experience adverse mental health outcomes due to the stress of losing her job
C) be well prepared to cope because of her strong self-efficacy and sense of mastery
D) struggle with mental health concerns but eventually adjust to her situation

Question 20

What were the top three kinds of debt held by individuals in 2016?

A) medical bills, private school tuition debt, and late child support payments
B) credit card debt, mortgages, and education loans
C) small business loans, gambling debts, and car loans
D) mortgages, gambling debts, late child support payments

Question 21

When does a family meet the criteria for positive cash flow?

A) when they pay off their mortgage
B) when debt exceeds assets
C) when they qualify for credit cards
D) when income exceeds expense

Question 22

Studies of unemployment have found that ______ successfully predicts reemployment.

A) adaptability
B) income
C) high self-efficacy
D) external locus of control

Question 23

What is the family life cycle model, developed by Ando and Modigliani (1963), used for?

A) understanding the saving and spending behaviors of families
B) helping families avoid debt accumulation
C) focusing on the social construction of savings and debt
D) explaining how families get into debt

Question 24

In the family life cycle model, what partly explains the gap between the theory of household resource allocation over time and actual resource allocation?

A) bankruptcy
B) nonnormative factors
C) psychology
D) unrealistic standards of living

Question 25

Compared to families who received professional financial planning advice, families who did not receive professional financial planning advice ______.

A) have less retirement savings
B) have higher levels of debt
C) are less satisfied with their current financial situation
D) are more satisfied with their current financial situation

Question 26

Financial strain represents the subjective, psychological aspects of economic stress and is thought to be related to, but independent of, one's income.

Question 27

Economic stress is a nonnormative stressor regardless of whether it is temporary or chronic.

Question 28

Research has found that job loss is only associated with negative outcomes when it occurs to a single-income family.

Question 29

A family's net worth refers to their employment-based income.

Question 30

Debt associated with mortgages is the more problematic type of debt.

Question 31

Filing for bankruptcy impacts the ability to secure low-cost loans.

Question 32

The family economic stress model attributed to Conger and Elder (1994) predicts that economic hardship will adversely change personal mental health, marital quality, and parenting.

Question 33

Home equity refers to the value of a home minus the amount owed on the mortgage.

Question 34

Secured debt is associated with more negative outcomes than unsecured debt.

Question 35

Research suggests that economic stress affects parenting practices by decreasing inconsistent, controlling, and punitive discipline.

Question 36

Discuss potential negative outcomes when an individual or family is unable to cope with economic stress.

Question 37

Describe several economic indicators that measure a family's economic status.

Question 38

What are the three stages of the family economic lifestyle cycle, and what challenges do families face at each stage? What can families do to plan at each stage?

Question 39

What traits are associated with successfully addressing financial hardships?

Question 40

Summarize the benefits and drawbacks of home ownerships.