Deck 16: Workfare

Question 1

Figure 16.2

According to figure 16.2 in each panel the solid line (baT)represents___________.

A) Alternative work opportunities
B) Workfare job opportunities
C) Indifference curves
D) Fixed monetary cost required for the workfare job

Answer 1

A

Question 2

Programs that provide opportunities for poor households to earn income by performing low-skill labor in public works projects are called____________.

A) Welfare program
B) Earned income tax credit program
C) Workfare programs
D) Unconditional targeting transfer programs

Answer 2

C

Question 3

Figure 16.2

According to empirical data on targeting outcomes,the results have been anything but perfect,they reveal that:

A) 80% of funds are going to non-poor
B) 60-70% of participants are from poor households
C) 20% of the participants were from poor households
D) The work requirement played no role in preventing participation by the poor.

Answer 3

B

Question 4

Participation in a workforce program can alter participants' behavior in all of the following ways except:

A) Relax liquidity constraints
B) Alter the way a woman's interests enter into household decision making
C) Increase income
D) Tighten liquidity constraints

Question 5

Figure 16.1
$$\text { Mary }$$ Mary
$$\text { Jane }$$ Jane


-According to figure 16.1 how much can each woman consume if they don't participate in the workfare program?

A) Each woman can consume M
B) Mary can consume at point A; Jane can consume at point B
C) Mary can consume at point A; Jane can consume at point A
D) There is not enough information to tell

Question 6

Workfare program participation raises a participants' well-being more,all else equal,the _________ the program wage exceeds the wage in the participant's alternative activity and the __________are the worker's fixed costs of participation.:

A) Smaller amount; smaller
B) More; larger
C) More; smaller
D) Smaller amount; larger

Question 7

Figure 16.1
$$\text { Mary }$$ Mary
$$\text { Jane }$$ Jane


-According to figure 16.1 which person will choose to participate in a workfare programs?

A) Jane
B) Mary
C) Neither
D) Both

Question 8

Self targeting allows the government to _____________.

A) Target only those who are deserving of help
B) Discourage leakage to the non-poor at a high cost
C) Encourage leakages to the non-poor at a low cost
D) Add to asset creation speeding economic growth and long-run poverty reduction

Question 9

Many workfare programs share one thing in common:

A) That they are capital intensive meaning they use a relatively small amount of labor relative to capital
B) That they are capital intensive meaning they use a relatively large amount of labor relative to capital
C) That they are labor intensive meaning they use a relatively small amount of capital relative to labor
D) That they are capital intensive meaning they use a relatively large amount of capital relative to labor

Question 10

In order for a workfare program to be self targeting,it must offer a ______ wage than the alternative wage available to poor households and a ________wage than the alternative wage available to wealthier households?

A) Higher; lower
B) Higher; higher
C) Lower; lower
D) Lower; higher

Question 11

In order for a workfare program to be self targeting,it must offer a wage ______ than what's available to poor households currently and ________ that what is available to a wealthier household?

A) Higher; lower
B) Higher; higher
C) Lower; lower
D) Lower; higher

Question 12

All of the following are potential fixed costs a poor household may incur from participating in a workfare program,except:

A) Hourly babysitting fee
B) Travel cost
C) Any cost that does not rise as the hours worked in the program rises
D) Tools

Question 13

Figure 16.2

According to figure 16.2 in each panel the potential participants face a fixed participation cost.Who would participate in this workfare program?

A) Jane
B) Mary
C) Both
D) Neither

Question 14

All of the following are the primary objectives of most workfare programs except:

A) Immediate reduction of poverty for participants
B) Reduction in the vulnerability for households that might fall into the need in the future
C) Increased economic growth
D) To give poor people skills to find their own job

Question 15

Figure 16.2

According to figure 16.2 in each panel the dashed line represents___________.

A) Alternative work opportunities
B) Workfare job opportunities
C) Indifference curves
D) Fixed monetary cost required for the workfare job

Question 16

Figure 16.2

According to figure 16.2 in each panel the potential participant faces a fixed participation cost.Mary faces a fixed monetary cost such as _________ and Jane faces a fixed time cost such as _____________.

A) The cost of buying a bus ticket; the time it takes to walk to work
B) The cost of tools; time spent at workfare job
C) Time on the bus to work; Tools needed for the job
D) Explicit monetary payment for getting the higher paying job; leisure time given up in exchange for work hours

Question 17

Figure 16.1
$$\text { Mary }$$ Mary
$$\text { Jane }$$ Jane


-According to figure 16.1 which person faces a higher wage in her alternative activities?

A) Jane
B) Mary
C) Neither the wages are the same
D) There is not enough information to tell who earns a higher wage for alternative activities

Question 18

All of the following are reasons why a household would choose to participate in a workfare program except:

A) If they already have a job as a high skilled worker at a less than competitive wage
B) If they are aware of the program
C) If they believe the benefits outweigh the costs
D) If they are deemed eligible

Question 19

Why might self targeting in a workfare program fair to prevent benefits from leaking to non-poor households?

A) If wages are set too low
B) If some members of a non-poor household have little opportunity to earn income in alternative activities
C) If some members of a non-poor household have many opportunities to earn income in alternative activities
D) If the means tests fail to weed out the non-poor households

Question 20

Figure 16.1
$$\text { Mary }$$ Mary
$$\text { Jane }$$ Jane


-According to figure 16.1 which of the following is true?

A) wa2 < wp > wa1.
B) wa2 < wp < wa1.
C) wa2>wp> wa1.
D) There is not enough information to tell

Question 21

Discuss the cost and benefits or raising a program wage.

Question 22

Under what conditions can workforce programs reduce vulnerability for workers?

Question 23

Figure 16.3
Labor Market Impacts of Workfare-Induced Demand Shifts
Under Two Sets of Labor Market Conditions
(a) (b)

According to figure 16.3(a)the workforce program is show as _______,and in figure 16.3(b)the workforce program is shown as ____________?

A) A rightward shift from LD to TD; A rightward shift from LD to TD
B) A leftward shift from TD to LD; A rightward shift from LD to TD
C) A rightward shift from LD to TD; A leftward shift from TD to LD
D) A leftward shift from TD to LD; A leftward shift from TD to LD

Question 24

Workfare programs are _______ likely than other targeted transfer programs to generate spillover effects through labor markets,because they may significantly __________.

A) More; increase local supply of labor
B) Less; increase local demand for labor
C) More; increase local demand for labor
D) Less; decrease local supply of labor

Question 25

Figure 16.3
Labor Market Impacts of Workfare-Induced Demand Shifts
Under Two Sets of Labor Market Conditions
(a) (b)

According to figure 16.3(a)if the labor market is categorized by a market wage for low skill labor that is stuck above equilibrium at Wm ,which area represents unemployment?

A) 0- a
B) 0-b
C) a - b
D) 0- (a+b)/2

Question 26

Figure 16.3
Labor Market Impacts of Workfare-Induced Demand Shifts
Under Two Sets of Labor Market Conditions
(a) (b)

According to figure 16.3which graph depicts a labor market that is categorized by under and unemployment?

A) Figure 16.3A
B) Figure 16.3B
C) Neither figure shows unemployment
D) There is unemployment in both figure A and B

Question 27

Work requirements have more bite - proving more effective at discouraging leakage and encouraging work - when they are specified in ____________,which tie pay to the quantity of tasks a worker completes,rather than _______,which tie pay to hours of presence on the job.

A) Daily terms; completion terms
B) Piece rate terms ; time rate terms
C) Completion terms; hourly terms
D) Time rate terms; completion rate terms

Question 28

If a workfare program faces a fixed budget limit,B,then total program costs are largely fixed in advance and policy analysts may wish to ask: How many workers are likely to obtain employment through the program? If program administrators have set the program wage w and the target ratio n of non-wage to wage costs,then the budget will finance the creation of roughly _______worker-days of employment.

A) B x [w(1+n)]
B) B/[w(n)]
C) B/[w(1+n)]
D) [w(1+n)] /B

Question 29

Why do emergency employment programs get criticized for creating infrastructure of low quality or duration?