Question 1

If a government could successfully achieve the maximin criterion, each member of society would have an equal income.

Accepted Answer

A) True 
 B)False

Question 2

Table 20-14
Income Inequality in the United States
The values in the table reflect the percentages of pre-tax-and transfer income.
  Source: US Census Bureau
-Refer to Table 20-14. In percentage terms, how much less income did the bottom 40% of families have in 2010 than in 1980?

Accepted Answer

The answer of Table 20-14
Income Inequality in the United States
The...

Question 3

Table 20-15
Income Inequality in 2010 in the United States by Race
The values in the table reflect the percentages of pre-tax-and-transfer income.
  Source: US Census Bureau
-Refer to Table 20-15. In percentage point terms, how much more did the top 5% of the Asian population earn than it would have if income were distributed equally?

Accepted Answer

The answer of Table 20-15
Income Inequality in 2010 in the...

Question 4

The poverty line is set by the government so that 10 percent of all families fall below that line and are thereby classified as "poor."

Accepted Answer

A) True 
 B)False

Question 5

With a minimum wage law, the workers who remain employed benefit from a .

Accepted Answer

The answer of With a minimum wage law, the workers...

Question 6

Governments enact policies to

Accepted Answer

A)   make the distribution of income more efficient.
B)   make the distribution of income more equal.
C)   maximize the use of the welfare system.
D)   minimize the use of in-kind transfers.E) C) and D)
F) A) and C)

Question 7

If income were equally distributed among households,

Accepted Answer

A)   each household's relative share of income would increase.
B)   each household's relative share of income would decrease.
C)   the top fifth of households would have 50 percent of the income.
D)   50 percent of the households would receive exactly 50 percent of the income.E) C) and D)
F) A) and B)

Question 8

Which of the three political philosophies discussed in the textbook, if any, think the government should not take from some individuals and give to others to achieve any particular distribution of income?

Accepted Answer

The answer of Which of the three political philosophies discussed...

Question 9

Because people can borrow when they are young, the life cycle theory would suggest that one's standard of living depends on

Accepted Answer

A)   lifetime income rather than annual income.
B)   aggregate income rather than annual personal income.
C)   annual extended-family income rather than annual personal income.
D)   income averaged across seasons rather than across years.E) All of the above
F) B) and C)

Question 10

A common criticism of government programs that are designed to assist the poor is that

Accepted Answer

A)   those who receive assistance rarely meet the criterion for eligibility.
B)   the majority of those below the poverty line refuse to accept government assistance.
C)   they create incentives for people to become "needy."
D)   they typically account for a majority of annual government expenditures.E) A) and D)
F) A) and B)

Question 11

Which of the following does not explain the rise in income inequality in the United States from 1970 to 2011?

Accepted Answer

A)   Changes in technology.
B)   An increase in minimum wages.
C)   A reduction in the demand for unskilled labor.
D)   Increased international trade with low-wage countries.E) A) and B)
F) A) and D)

Question 12

Table 20-3
The Distribution of Income in Edgerton
 
-Refer to Table 20-3. According to the table, what percent of families in Edgerton have income levels below $44,000?

Accepted Answer

A)   80 percent
B)   60 percent
C)   50 percent
D)   40 percentE) All of the above
F) A) and B)

Question 13

The United States has greater income disparity than

Accepted Answer

A)   Japan.
B)   Indib.
C)   South Africa.
D)   Both a and b are correct.E) B) and C)
F) B) and D)

Question 14

Which of the following will not occur when government policies are enacted to make the distribution of income more equitable?

Accepted Answer

A)   People will alter their behaviors.
B)   Incentives will be distorted.
C)   Total utility will likely remain constant.
D)   The allocation of resources will be less efficient .E) A) and B)
F) None of the above

Question 15

The poverty rate for female households with no spouse present is approximately

Accepted Answer

A)   10 percent.
B)   20 percent.
C)   30 percent.
D)   40 percent.E) B) and D)
F) B) and C)

Question 16

The life-cycle pattern of income variation causes inequality in the distribution of annual income, but it does not necessarily represent .

Accepted Answer

inequality...

Question 17

The normal life cycle pattern of income

Accepted Answer

A)   contributes to more inequality in the distribution of annual income and to more inequality in living standards.
B)   contributes to more inequality in the distribution of annual income, but it does not necessarily contribute to more inequality in living standards.
C)   contributes to less inequality in the distribution of annual income and to less inequality in living standards.
D)   has no effect on either the distribution of annual income or on living standards.E) B) and C)
F) A) and D)

Question 18

John Rawls, who developed the way of thinking called liberalism, argued that government policies should be aimed at maximizing the sum of utility of everyone in society.

Accepted Answer

A) True 
 B)False

Question 19

When comparing the percentage of income (or expenditure)  of the lowest and highest 10 percent of the population,

Accepted Answer

A)   South Africa has a more equal income distribution than the United States.
B)   South Africa has a more equal income distribution than Japan.
C)   Japan has a more equal income distribution than the United States.
D)   Mexico has a more equal income distribution than Germany.E) A) and B)
F) C) and D)

Question 20

A government policy aimed at protecting people against the risk of adverse events is called .

Accepted Answer

The answer of A government policy aimed at protecting people...

Exam 20: Income Inequality and Poverty

The poverty line is set by the government so that 10 percent of all families fall below that line and are thereby classified as "poor."

Correct Answer
verified

Correct Answer
verified

Which of the following will not occur when government policies are enacted to make the distribution of income more equitable?

Correct Answer
verified

When comparing the percentage of income (or expenditure) of the lowest and highest 10 percent of the population,

Correct Answer
verified

The normal life cycle pattern of income

Correct Answer
verified

Table 20-14 Income Inequality in the United States The values in the table reflect the percentages of pre-tax-and transfer income. Source: US Census Bureau -Refer to Table 20-14. In percentage terms, how much less income did the bottom 40% of families have in 2010 than in 1980?

Correct Answer
verified

John Rawls, who developed the way of thinking called liberalism, argued that government policies should be aimed at maximizing the sum of utility of everyone in society.

Correct Answer
verified

If a government could successfully achieve the maximin criterion, each member of society would have an equal income.

Correct Answer
verified

A government policy aimed at protecting people against the risk of adverse events is called .

Correct Answer
verified

With a minimum wage law, the workers who remain employed benefit from a .

Correct Answer
verified

If income were equally distributed among households,

Correct Answer
verified

Which of the three political philosophies discussed in the textbook, if any, think the government should not take from some individuals and give to others to achieve any particular distribution of income?

Correct Answer
verified

The poverty rate for female households with no spouse present is approximately

Correct Answer
verified

The life-cycle pattern of income variation causes inequality in the distribution of annual income, but it does not necessarily represent .

Correct Answer
verified
inequality...
View Answer

Governments enact policies to

Correct Answer
verified

Because people can borrow when they are young, the life cycle theory would suggest that one's standard of living depends on

Correct Answer
verified

Table 20-3 The Distribution of Income in Edgerton -Refer to Table 20-3. According to the table, what percent of families in Edgerton have income levels below $44,000?

Correct Answer
verified

Which of the following does not explain the rise in income inequality in the United States from 1970 to 2011?

Correct Answer
verified

A common criticism of government programs that are designed to assist the poor is that

Correct Answer
verified

The United States has greater income disparity than

Correct Answer
verified

Exam 20: Income Inequality and Poverty

The poverty line is set by the government so that 10 percent of all families fall below that line and are thereby classified as "poor."

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following will not occur when government policies are enacted to make the distribution of income more equitable?

Correct AnswerverifiedShow Answer

When comparing the percentage of income (or expenditure) of the lowest and highest 10 percent of the population,

Correct AnswerverifiedShow Answer

The normal life cycle pattern of income

Correct AnswerverifiedShow Answer

Table 20-14 Income Inequality in the United States The values in the table reflect the percentages of pre-tax-and transfer income. Source: US Census Bureau -Refer to Table 20-14. In percentage terms, how much less income did the bottom 40% of families have in 2010 than in 1980?

Correct AnswerverifiedShow Answer

John Rawls, who developed the way of thinking called liberalism, argued that government policies should be aimed at maximizing the sum of utility of everyone in society.

Correct AnswerverifiedShow Answer

If a government could successfully achieve the maximin criterion, each member of society would have an equal income.

Correct AnswerverifiedShow Answer

A government policy aimed at protecting people against the risk of adverse events is called .

Correct AnswerverifiedShow Answer

With a minimum wage law, the workers who remain employed benefit from a .

Correct AnswerverifiedShow Answer

If income were equally distributed among households,

Correct AnswerverifiedShow Answer

Which of the three political philosophies discussed in the textbook, if any, think the government should not take from some individuals and give to others to achieve any particular distribution of income?

Correct AnswerverifiedShow Answer

The poverty rate for female households with no spouse present is approximately

Correct AnswerverifiedShow Answer

The life-cycle pattern of income variation causes inequality in the distribution of annual income, but it does not necessarily represent .

Correct Answerverifiedinequality...View AnswerShow Answer

Governments enact policies to

Correct AnswerverifiedShow Answer

Because people can borrow when they are young, the life cycle theory would suggest that one's standard of living depends on

Correct AnswerverifiedShow Answer

Table 20-3 The Distribution of Income in Edgerton -Refer to Table 20-3. According to the table, what percent of families in Edgerton have income levels below $44,000?

Correct AnswerverifiedShow Answer

Which of the following does not explain the rise in income inequality in the United States from 1970 to 2011?

Correct AnswerverifiedShow Answer

A common criticism of government programs that are designed to assist the poor is that

Correct AnswerverifiedShow Answer

The United States has greater income disparity than

Correct AnswerverifiedShow Answer

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inequality...
View Answer

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