Question 1

Which of the following groups has the lowest poverty rate?

Accepted Answer

A)   blacks
B)   Asians
C)   children (under age 18) 
D)   female households, no spouse presentE) B) and C)
F) A) and B)

Question 2

Which group would be the least upset by wide variation in the income distribution?

Accepted Answer

A)   utilitarians
B)   liberals
C)   libertarians
D)   Each group would be equally upset.E) B) and D)
F) B) and C)

Question 3

Table 20-5
Distribution of Income in Umakastan
 
-Refer to Table 20-5. Approximately what percentage of families in Umakastan have income levels below $74,000?

Accepted Answer

A)   27%
B)   28%
C)   52%
D)   79%E) All of the above
F) B) and C)

Question 4

A disadvantage of the Earned Income Tax Credit (EITC) program is that it does not help alleviate poverty due to unemployment, sickness, or other inability to work.

Accepted Answer

A) True 
 B)False

Question 5

Since the early 1970s, welfare benefits have declined,

Accepted Answer

A)   which is largely due to the success of the negative income tax program.
B)   which is largely due to the success of private charities.
C)   yet the percentage of children living with only one parent has increased.
D)   and the percentage of children living with only one parent has decreased.E) A) and D)
F) C) and D)

Question 6

When the government enacts policies to redistribute income,

Accepted Answer

A)   the objective is to enhance efficiency and a side effect is that the allocation of resources becomes more equal.
B)   the objective is to enhance efficiency and a side effect is that the allocation of resources becomes less equal.
C)   the objective is to enhance equality and a side effect is that the allocation of resources becomes more efficient.
D)   the objective is to enhance equality and a side effect is that the allocation of resources becomes less efficient.E) None of the above
F) C) and D)

Question 7

Figure 20-3 
-Refer to Figure 20-3. In 2011, the percent of elderly aged 65 and over in poverty is

Accepted Answer

A)   higher than both the percentage of adults aged 18 to 64 and the percentage of children under age 18 in poverty.
B)   higher than the percentage of adults aged 18 to 64 but is lower than the percentage of children under age 18 in poverty.
C)   lower than both the percentage of adults aged 18 to 64 and the percentage of children under age 18 in poverty.
D)   lower than the percentage of children under age 18 but is equal to the percentage of adults aged 18 to 64 in poverty.E) All of the above
F) C) and D)

Question 8

The maximin criterion suggests that social policy should

Accepted Answer

A)   expropriate the factors of production from the capitalist class.
B)   ensure an equal distribution of income.
C)   elevate the well-being of those at the bottom of the income distribution.
D)   elevate the well-being of all workers.E) A) and B)
F) B) and C)

Question 9

If in-kind transfers were included in income at their market value, what would happen to the number of families below the poverty line?

Accepted Answer

It would d...

Question 10

Suppose society consists of three individuals: Phil, Jay, and Mitchell. Phil has $60,000 of income, Jay has $200,000 of income, and Mitchell has $100,000 of income. A utilitarian would argue that

Accepted Answer

A)   taking $1 from Mitchell and giving it to Phil would increase society's total utility.
B)   taking $1 from Mitchell and giving it to Jay would increase society's total utility.
C)   taking $1 from Phil and giving it to Jay would increase society's total utility.
D)   None of the above are correct because all three individuals have sufficient income.E) All of the above
F) C) and D)

Question 11

Since the early 1970s, average incomes have

Accepted Answer

A)   increased, which has reduced the poverty rate.
B)   increased, while the poverty rate increased slightly.
C)   decreased, while the poverty rate has remained unchanged.
D)   remained unchanged, while the poverty rate has decreased.E) None of the above
F) B) and D)

Question 12

Table 20-8
  Source: U.S. Bureau of Census
-Refer to Table 20-8. In 2011, the bottom 40% of families has

Accepted Answer

A)   about 13% of total income in the U.S.
B)   about 28% of total income in the U.S.
C)   about 51% of total income in the U.S.
D)   about 72% of total income in the U.S.E) None of the above
F) A) and D)

Question 13

Scenario 20-4
Suppose the government implemented a negative income tax and used the following formula to compute a family's tax liability:
Taxes owed = (1/5 of income)  - $15,000
-Refer to Scenario 20-4. A family earning $50,000 before taxes would have how much after-tax income?

Accepted Answer

A)   -$5,000
B)   $40,000
C)   $45,000
D)   $55,000E) B) and C)
F) A) and D)

Question 14

Scenario 20-1
The government is proposing switching from a progressive tax system in which families pay 15% of the first $50,000 earned, 25% of the next $50,000 earned, and 35% of any income over $100,000 to a tax system in which every family pays 20% of their income less $20,000.
-Refer to Scenario 20-1. Which group would be most in favor of the switch from the current progressive tax policy to the new policy?

Accepted Answer

A)   Utilitarians, because they want to maximize the utility to the worst-off person in society
B)   Liberals, because of the maximin criterion
C)   Libertarians, because they believe in diminishing marginal utility
D)   All three groups would be equally in favor of the switch.E) A) and C)
F) B) and C)

Question 15

Table 20-11
Poverty Thresholds in 2011, by Size of Family and Number of Related Children Under 18 Years [Dollars]
 
-Refer to Table 20-11. What is the poverty line for a family with one 68-year-old adult and one child?

Accepted Answer

A)   $10,788
B)   $15,446
C)   $15,504
D)   $18,106E) B) and C)
F) All of the above

Question 16

The goal of utilitarians is to

Accepted Answer

A)   apply the logic of individual decision making to questions concerning morality and public policy.
B)   measure happiness and satisfaction.
C)   redistribute income based on the assumption of increasing marginal utility.
D)   All of the above are correct.E) A) and D)
F) B) and C)

Question 17

The English philosophers Jeremy Bentham and John Stuart Mill founded the school of thought called

Accepted Answer

A)   liberalism.
B)   libertarianism.
C)   mobilism.
D)   utilitarianism.E) A) and C)
F) None of the above

Question 18

Which political philosophy concludes that equality of opportunities is more important than equality of outcomes?

Accepted Answer

The answer of Which political philosophy concludes that equality of...

Question 19

Liberalism is the political philosophy espoused by

Accepted Answer

A)   Robert Nozick.
B)   John Stuart Mill.
C)   John Rawls.
D)   Jeremy Bentham.E) C) and D)
F) B) and C)

Question 20

If the government decided that each family needs a minimum income of $25,000 and promised to make up the difference between whatever a family earned and $25,000, which of the following is correct?

Accepted Answer

A)   The government is effectively taxing every dollar earned up to $25,000 at a rate of 100%.
B)   This program would reduce the incentive to work to earn any wage up to $25,000.
C)   If workers are discouraged from working due to this program, they will miss any on-the-job training that would have otherwise occurred, limiting their ability to improve their skills.
D)   All of the above are correct.E) A) and D)
F) B) and C)

Exam 20: Income Inequality and Poverty

Since the early 1970s, welfare benefits have declined,

Correct Answer
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Correct Answer
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Figure 20-3 -Refer to Figure 20-3. In 2011, the percent of elderly aged 65 and over in poverty is

Correct Answer
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The goal of utilitarians is to

Correct Answer
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Which of the following groups has the lowest poverty rate?

Correct Answer
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When the government enacts policies to redistribute income,

Correct Answer
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Liberalism is the political philosophy espoused by

Correct Answer
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Which political philosophy concludes that equality of opportunities is more important than equality of outcomes?

Correct Answer
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Which group would be the least upset by wide variation in the income distribution?

Correct Answer
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Table 20-5 Distribution of Income in Umakastan -Refer to Table 20-5. Approximately what percentage of families in Umakastan have income levels below $74,000?

Correct Answer
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Scenario 20-4 Suppose the government implemented a negative income tax and used the following formula to compute a family's tax liability: Taxes owed = (1/5 of income) - $15,000 -Refer to Scenario 20-4. A family earning $50,000 before taxes would have how much after-tax income?

Correct Answer
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Since the early 1970s, average incomes have

Correct Answer
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Suppose society consists of three individuals: Phil, Jay, and Mitchell. Phil has $60,000 of income, Jay has $200,000 of income, and Mitchell has $100,000 of income. A utilitarian would argue that

Correct Answer
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The maximin criterion suggests that social policy should

Correct Answer
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Table 20-11 Poverty Thresholds in 2011, by Size of Family and Number of Related Children Under 18 Years [Dollars] -Refer to Table 20-11. What is the poverty line for a family with one 68-year-old adult and one child?

Correct Answer
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If the government decided that each family needs a minimum income of $25,000 and promised to make up the difference between whatever a family earned and $25,000, which of the following is correct?

Correct Answer
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If in-kind transfers were included in income at their market value, what would happen to the number of families below the poverty line?

Correct Answer
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It would d...
View Answer

The English philosophers Jeremy Bentham and John Stuart Mill founded the school of thought called

Correct Answer
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Table 20-8 Source: U.S. Bureau of Census -Refer to Table 20-8. In 2011, the bottom 40% of families has

Correct Answer
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A disadvantage of the Earned Income Tax Credit (EITC) program is that it does not help alleviate poverty due to unemployment, sickness, or other inability to work.

Correct Answer
verified

Exam 20: Income Inequality and Poverty

Since the early 1970s, welfare benefits have declined,

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Figure 20-3 -Refer to Figure 20-3. In 2011, the percent of elderly aged 65 and over in poverty is

Correct AnswerverifiedShow Answer

The goal of utilitarians is to

Correct AnswerverifiedShow Answer

Which of the following groups has the lowest poverty rate?

Correct AnswerverifiedShow Answer

When the government enacts policies to redistribute income,

Correct AnswerverifiedShow Answer

Liberalism is the political philosophy espoused by

Correct AnswerverifiedShow Answer

Which political philosophy concludes that equality of opportunities is more important than equality of outcomes?

Correct AnswerverifiedShow Answer

Which group would be the least upset by wide variation in the income distribution?

Correct AnswerverifiedShow Answer

Table 20-5 Distribution of Income in Umakastan -Refer to Table 20-5. Approximately what percentage of families in Umakastan have income levels below $74,000?

Correct AnswerverifiedShow Answer

Scenario 20-4 Suppose the government implemented a negative income tax and used the following formula to compute a family's tax liability: Taxes owed = (1/5 of income) - $15,000 -Refer to Scenario 20-4. A family earning $50,000 before taxes would have how much after-tax income?

Correct AnswerverifiedShow Answer

Since the early 1970s, average incomes have

Correct AnswerverifiedShow Answer

Suppose society consists of three individuals: Phil, Jay, and Mitchell. Phil has $60,000 of income, Jay has $200,000 of income, and Mitchell has $100,000 of income. A utilitarian would argue that

Correct AnswerverifiedShow Answer

The maximin criterion suggests that social policy should

Correct AnswerverifiedShow Answer

Table 20-11 Poverty Thresholds in 2011, by Size of Family and Number of Related Children Under 18 Years [Dollars] -Refer to Table 20-11. What is the poverty line for a family with one 68-year-old adult and one child?

Correct AnswerverifiedShow Answer

If the government decided that each family needs a minimum income of $25,000 and promised to make up the difference between whatever a family earned and $25,000, which of the following is correct?

Correct AnswerverifiedShow Answer

If in-kind transfers were included in income at their market value, what would happen to the number of families below the poverty line?

Correct AnswerverifiedIt would d...View AnswerShow Answer

The English philosophers Jeremy Bentham and John Stuart Mill founded the school of thought called

Correct AnswerverifiedShow Answer

Table 20-8 Source: U.S. Bureau of Census -Refer to Table 20-8. In 2011, the bottom 40% of families has

Correct AnswerverifiedShow Answer

A disadvantage of the Earned Income Tax Credit (EITC) program is that it does not help alleviate poverty due to unemployment, sickness, or other inability to work.

Correct AnswerverifiedShow Answer

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It would d...
View Answer

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