Question 1

A key to creating effective policy to fight poverty is to understand:

Accepted Answer

A)  why people are poor.
B)  the correlation between education and income.
C)  the correlation between income and geographic location.
D)  the unintended consequences of reductions in the incentive to work.E) None of the above
F) C) and D)

Question 2

If we compare income mobility in relative terms,we would measure whether a person's income:

Accepted Answer

A)  is higher than her parents' income.
B)  places her higher up in the income distribution than her parents' income.
C)  is higher at the end of her career compared to the beginning.
D)  rises with age for all people.E) None of the above
F) A) and B) A

Question 3

U.S.households headed by __________ are the most likely to be poor.

Accepted Answer

A)  single women
B)  Hispanic males
C)  those under age 18
D)  single malesE) A) and B)
F) None of the above

Question 4

Does low human capital cause poverty or does poverty cause low human capital?

Accepted Answer

A)  The causality works both ways.
B)  Low human capital causes poverty,not the other way around.
C)  Poverty causes low human capital,not the other way around.
D)  There is no causal link between low human capital and poverty.E) All of the above
F) A) and D)

Question 5

Which curve summarizes inequality visually?

Accepted Answer

A)  Lorenz curve
B)  Laffer curve
C)  Income Inequality curve
D)  Gini curveE) B) and D)
F) None of the above

Question 6

Since 1970,the poverty rate has largely fluctuated between:

Accepted Answer

A)  10 and 15 percent.
B)  5 and 10 percent.
C)  0 and 5 percent.
D)  15 and 25 percent.E) None of the above
F) A) and C)

Question 7

The more human capital you have,the more likely you will:

Accepted Answer

A)  earn more money.
B)  be unemployable.
C)  not benefit from specializing.
D)  All of these are true.E) A) and B)
F) A) and C)

Question 8

The term "welfare state" describes the idea that:

Accepted Answer

A)  government has a responsibility to promote the economic well-being of its citizens.
B)  some areas suffer a disproportionate amount of chronic poverty.
C)  some areas suffer from stagnant economic growth.
D)  None of these is true.E) C) and D)
F) B) and D)

Question 9

Perfect income equality means:

Accepted Answer

A)  everyone earns the exact same amount.
B)  everyone earns exactly what they're worth.
C)  people earn different amounts based on what they do,but everyone in the same job earns the same amount.
D)  everyone enjoys exactly the same standard of living.E) A) and C)
F) C) and D)

Question 10

In the United States,an example of a common in-kind transfer would be:

Accepted Answer

A)  public housing.
B)  free school lunches.
C)  medical treatment benefits provided by Medicaid.
D)  All of these are in-kind transfers.E) A) and C)
F) A) and D)

Question 11

If the population is split up into quintiles by income,the bottom quintile would include:

Accepted Answer

A)  the poorest half of the population.
B)  the poorest 60 percent of the population.
C)  the richest half of the population.
D)  the poorest 20 percent of the population.E) B) and C)
F) A) and D)

Question 12

Which of the following countries has higher income mobility than the United States?

Accepted Answer

A)  Canada
B)  France
C)  Denmark
D)  All of these countries have higher income mobility than the United States.E) B) and D)
F) A) and C)

Question 13

An example of a policy aimed at economic development that would also indirectly impact poverty would be:

Accepted Answer

A)  public investments in education.
B)  job training.
C)  infrastructure.
D)  All of these will cause economic growth and positively impact poverty.E) B) and C)
F) C) and D) D

Question 14

More than a quarter of the population experiences ________ poverty at some point in their lives,perhaps due to losing a job or experiencing sickness or injury.

Accepted Answer

A)  transient
B)  abject
C)  chronic
D)  None of these is true.E) A) and B)
F) A) and C)

Question 15

The most common international poverty measure is:

Accepted Answer

A)  the number of people living on less than $1.25 per day.
B)  the number of people living on less than $5 per day.
C)  the absolute poverty line,as defined by the U.S.Census Bureau.
D)  the poorest 1 percent of income earners within a given country.E) A) and C)
F) A) and B)

Question 16

Research suggests that about ______ percent of people living under the poverty line in any given year are chronically poor.

Accepted Answer

A)  3
B)  8
C)  13
D)  38E) B) and D)
F) None of the above A

Question 17

An example of a government program aimed at reducing poverty that is universal is:

Accepted Answer

A)  public education.
B)  Social Security.
C)  Medicare.
D)  All of these are universal programs.E) None of the above
F) A) and B)

Question 18

Critics of the U.S.definition of poverty claim that:

Accepted Answer

A)  it is set too low,because many currently spend less than 1/3 of their income on food.
B)  it is set too high,because many currently spend less than 1/3 of their income on food.
C)  it is set too low,because many currently spend more than 1/3 of their income on food.
D)  it is set too high,because many currently spend more than 1/3 of their income on food.E) A) and B)
F) All of the above

Question 19

Programs that provide goods or services,rather than cash,directly to needy individuals or households are called:

Accepted Answer

A)  in-kind transfers.
B)  social insurance.
C)  economic growth.
D)  redistribution.E) A) and B)
F) B) and C)

Question 20

Incomes for adults vary widely across race and gender in the United States.These differences could be due to:

Accepted Answer

A)  discrimination.
B)  education.
C)  choice of occupation.
D)  All of these can explain the differences.E) B) and D)
F) None of the above

Exam 21: Poverty, Inequality, and Discrimination

A key to creating effective policy to fight poverty is to understand:

Correct AnswerverifiedShow Answer

If we compare income mobility in relative terms,we would measure whether a person's income:

Correct AnswerverifiedA

U.S.households headed by __________ are the most likely to be poor.

Correct AnswerverifiedShow Answer

Does low human capital cause poverty or does poverty cause low human capital?

Correct AnswerverifiedShow Answer

Which curve summarizes inequality visually?

Correct AnswerverifiedShow Answer

Since 1970,the poverty rate has largely fluctuated between:

Correct AnswerverifiedShow Answer

The more human capital you have,the more likely you will:

Correct AnswerverifiedShow Answer

The term "welfare state" describes the idea that:

Correct AnswerverifiedShow Answer

Perfect income equality means:

Correct AnswerverifiedShow Answer

In the United States,an example of a common in-kind transfer would be:

Correct AnswerverifiedShow Answer

If the population is split up into quintiles by income,the bottom quintile would include:

Correct AnswerverifiedShow Answer

Which of the following countries has higher income mobility than the United States?

Correct AnswerverifiedShow Answer

An example of a policy aimed at economic development that would also indirectly impact poverty would be:

Correct AnswerverifiedD

More than a quarter of the population experiences ________ poverty at some point in their lives,perhaps due to losing a job or experiencing sickness or injury.

Correct AnswerverifiedShow Answer

The most common international poverty measure is:

Correct AnswerverifiedShow Answer

Research suggests that about ______ percent of people living under the poverty line in any given year are chronically poor.

Correct AnswerverifiedA

An example of a government program aimed at reducing poverty that is universal is:

Correct AnswerverifiedShow Answer

Critics of the U.S.definition of poverty claim that:

Correct AnswerverifiedShow Answer

Programs that provide goods or services,rather than cash,directly to needy individuals or households are called:

Correct AnswerverifiedShow Answer

Incomes for adults vary widely across race and gender in the United States.These differences could be due to:

Correct AnswerverifiedShow Answer

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