Question 1

The income of a person depends on

Accepted Answer

A)  The price of labor owned
B)  The quantity of labor owned
C)  The quantity of capital owned
D)  All of the above
E)  None of the above

Question 2

The income effect creates an incentive for welfare recipients to increase their earnings through extra work.

Accepted Answer

A) True 
 B)False

Question 3

Poverty is more widespread among black families than among white families.

Accepted Answer

A) True 
 B)False

Question 4

The EITC is a refundable tax credit administered by the IRS.

Accepted Answer

A) True 
 B)False

Question 5

The official "poverty threshold" used by the U.S.government is based on a(n) ______________ definition of poverty.

Accepted Answer

A)  Relative
B)  Comparative
C)  Absolute
D)  Abstract
E)  Economic

Question 6

Which of the following demographic groups historically has the highest incidence of poverty?

Accepted Answer

A)  White,married couples with no children living at home
B)  Black families,headed by a male income earner,with children living at home
C)  Female headed black families with children living at home
D)  Hispanic families in rural areas with children living at home
E)  White,female headed families in urban areas with no children living at home

Question 7

Medicare,Medicaid,and Food Stamps are examples of programs that provide

Accepted Answer

A)  "in-kind" assistance to the poor
B)  Guaranteed levels of income for the poor
C)  Training and job experience for the poor
D)  Income transfers from the poor to business firms
E)  Non-economic support of the poor

Question 8

An advantage of the negative income tax proposal is that

Accepted Answer

A)  It would allow for the free exercise of consumer choice
B)  A family's size would be the fundamental criterion of eligibility
C)  It would be favored by middle-income groups
D)  Inequalities in present antipoverty programs would be eliminated by concentrating transfer payments on the poor
E)  None of the above

Question 9

What is the primary source of an individual's taste for discrimination?

Accepted Answer

A)  Monopoly power
B)  The law of diminishing returns
C)  Personal prejudice
D)  Market imperfections
E)  None of the above

Question 10

Discrimination exists in a labor market when persons with different productivity levels are paid different wages.

Accepted Answer

A) True 
 B)False

Question 11

Why might an individual's labor resource holdings differ?

Accepted Answer

A)  Mental talents are not equally distributed among people
B)  Physical talents are not equally distributed among people
C)  People have different

Question 12

Poverty in the US occurs as a result of

Accepted Answer

A)  Inadequate GDP
B)  A shortage of resources
C)  The occurrence of wars and natural disasters
D)  Unequal distribution of income
E)  None of the above

Question 13

Ending discrimination against minority groups in educational processes and in employment situations would cause GDP to

Accepted Answer

A)  Fall because of the increased costs of training
B)  Fall since trained minority workers would knock some of the present workers out of their jobs
C)  Rise because of an increase in the quality and productivity of the labor force
D)  Rise because minority groups would consume more goods and services
E)  Do none of the above

Question 14

Most federal assistance to the poor is in the form of

Accepted Answer

A)  Cash payments
B)  Provision of health services
C)  Personnel programs
D)  Training programs
E)  Housing programs

Question 15

The incidence of poverty as it is officially defined in the United States is high among rural people and southern peoplE.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following describes the Earned Income Tax Credit (EITC) ?

Accepted Answer

A)   All poor families with children are eligible for a non-refundable tax credit based on the number of children living at home
B)   Poor families with two or more children are eligible for a refundable tax credit if household income is less than some predetermined threshold. Beyond the threshold, the credit is gradually phased out
C)   Poor families without children receive a non-refundable tax credit if household income is less than some predetermined threshold. Beyond the threshold, the credit is gradually phased out
D)   Poor families with household income below a predetermined threshold receive a refundable tax credit equal to a guaranteed minimum income. Above that threshold, all households must pay taxes
E)   None of the above

Question 17

Costs to taxpayers of a negative income tax plan vary inversely with the guaranteed level of income and directly with the income tax rate on earned incomE.

Accepted Answer

A) True 
 B)False

Question 18

Discrimination may be reduced by

Accepted Answer

A)  Government subsidies
B)  Investment in human capital
C)  Vigorous enforcement of antimonopoly laws
D)  Education related to tastes for discrimination
E)  All of the above

Question 19

Unlike the old AFDC program of income support,TANF requires recipients to

Accepted Answer

A)  Be physically unable to work or go to school
B)  Be retired
C)  Be women with children living at home
D)  Work
E)  Be blind or disabled

Question 20

Spending on education,training,and health are examples of

Accepted Answer

A)  Nonmarket discrimination
B)  Investments in human capital
C)  Welfare
D)  Transfer payments
E)  None of the above

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

Most federal assistance to the poor is in the form of

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Unlike the old AFDC program of income support,TANF requires recipients to

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The incidence of poverty as it is officially defined in the United States is high among rural people and southern peoplE.

Correct AnswerverifiedShow Answer

Which of the following describes the Earned Income Tax Credit (EITC) ?

Correct AnswerverifiedShow Answer

Poverty is more widespread among black families than among white families.

Correct AnswerverifiedShow Answer

What is the primary source of an individual's taste for discrimination?

Correct AnswerverifiedShow Answer

Ending discrimination against minority groups in educational processes and in employment situations would cause GDP to

Correct AnswerverifiedShow Answer

Why might an individual's labor resource holdings differ?

Correct AnswerverifiedShow Answer

The EITC is a refundable tax credit administered by the IRS.

Correct AnswerverifiedShow Answer

Discrimination exists in a labor market when persons with different productivity levels are paid different wages.

Correct AnswerverifiedShow Answer

An advantage of the negative income tax proposal is that

Correct AnswerverifiedShow Answer

Poverty in the US occurs as a result of

Correct AnswerverifiedShow Answer

The income effect creates an incentive for welfare recipients to increase their earnings through extra work.

Correct AnswerverifiedShow Answer

The official "poverty threshold" used by the U.S.government is based on a(n) ______________ definition of poverty.

Correct AnswerverifiedShow Answer

Discrimination may be reduced by

Correct AnswerverifiedShow Answer

Which of the following demographic groups historically has the highest incidence of poverty?

Correct AnswerverifiedShow Answer

The income of a person depends on

Correct AnswerverifiedShow Answer

Spending on education,training,and health are examples of

Correct AnswerverifiedShow Answer

Medicare,Medicaid,and Food Stamps are examples of programs that provide

Correct AnswerverifiedShow Answer

Costs to taxpayers of a negative income tax plan vary inversely with the guaranteed level of income and directly with the income tax rate on earned incomE.

Correct AnswerverifiedShow Answer

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