Question 1

In 2011,the Census Bureau introduced an alternate poverty measure that is based on:

Accepted Answer

A)   the price of food, and adjusts for geographic differences in the cost of living.
B)   the prices of food, clothing, shelter, and utilities, and adjusts for geographic differences in the cost of living.
C)   the price of housing, and adjusts for geographic differences in the cost of living.
D)   the average income of the lowest quartile of income earners.E) B) and D)
F) A) and B)

Question 2

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

Accepted Answer

A)   public housing.
B)   earned income tax credit.
C)   Aid to Families with Dependent Children.
D)   All of these are in-kind transfers.E) A) and B)
F) A) and C)

Question 3

The ______ the Lorenz curve is from/to the line of perfect equality,the _____ is the Gini coefficient,and the __________ income equality exists.

Accepted Answer

A)   farther; higher; less
B)   farther; higher; more
C)   closer; higher; less
D)   closer; lower; lessE) B) and D)
F) A) and C)

Question 4

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) B) and C)
F) A) and D)

Question 5

A standard way to measure income mobility is to compare:

Accepted Answer

A)   people's income to their parents' income.
B)   people's income at the beginning of their work-life to their income when they retire.
C)   the education level of people to that of their parents'.
D)   None of these is a standard way to measure income mobility.E) None of the above
F) A) and B)

Question 6

An example of a social insurance program offered in the United States is:

Accepted Answer

A)   Police and Firefighters.
B)   Social Security.
C)   Progressive taxation.
D)   All of these are examples of social insurance programs.E) C) and D)
F) A) and D)

Question 7

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

Accepted Answer

A)   food stamps.
B)   public investments in education.
C)   earned income tax credit.
D)   All of these will cause economic growth and positively impact poverty.E) B) and D)
F) None of the above

Question 8

Inequality within countries has been __________,and inequality between countries has been _________ in recent decades.

Accepted Answer

A)   increasing; decreasing
B)   increasing; increasing
C)   decreasing; increasing
D)   decreasing; decreasingE) B) and D)
F) All of the above

Question 9

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

Accepted Answer

A)   it is set too low, because of lower food prices relative to essential goods and services
B)   it is set too high, because of higher food prices relative to essential goods and services
C)   it is set too low, because of lower food prices relative to essential goods and services.
D)   it is set too high, because of higher food prices relative to essential goods and services.E) A) and D)
F) C) and D)

Question 10

In the United States,the official poverty line is calculated by multiplying:

Accepted Answer

A)   the average expenditure on housing for a family of a given size by 3.
B)   the cost of food for a family of a given size by 3.
C)   the average expenditure on housing for a family of a given size by 2.
D)   the cost of food for a family of a given size by 2.E) None of the above
F) B) and D)

Question 11

The practice of making choices using generalizations based on observable characteristics like race,gender,or age is called:

Accepted Answer

A)   discrimination.
B)   means-testing.
C)   conditional cash transfers.
D)   None of these is true.E) C) and D)
F) B) and D)

Question 12

Most of Europe has relatively _______ inequality,and much of Latin America and southern Africa has relatively _________ inequality.

Accepted Answer

A)   low; low
B)   high; high
C)   high; low
D)   low; highE) A) and D)
F) A) and C)

Question 13

Over the last 50 years,the rich have:

Accepted Answer

A)   become richer, and the poor have become poorer.
B)   become richer, and the poor have become richer, too.
C)   become relatively poorer, and the poor have become relatively richer.
D)   become relatively poorer, and the poor have become relatively poorer, too.E) B) and C)
F) All of the above

Question 14

Since 1970,the poverty rate has largely fluctuated between:

Accepted Answer

A)   5 and 10 percent.
B)   0 and 5 percent.
C)   15 and 25 percent.
D)   10 and 15 percent.E) B) and D)
F) All of the above

Question 15

If we compare income mobility in absolute 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)   places her higher up in the income distribution over the course of her work-life.E) B) and D)
F) B) and C)

Question 16

Those who believe that overall economic growth is more important than the distribution of income would say that:

Accepted Answer

A)   if everyone is getting richer, the relative speed of these gains isn't as important.
B)   it is fundamentally unjust for some people to have so much when others have so little.
C)   if the society is not getting richer, then things can never become more equal.
D)   All of these are true.E) A) and D)
F) A) and C)

Question 17

The $1.90 (PPP) per day line was chosen by averaging the national poverty lines of 15 poor countries to represent:

Accepted Answer

A)   chronic poverty by some globally comparable standard.
B)   absolute poverty by some globally comparable standard.
C)   transient poverty by some globally comparable standard.
D)   relative poverty by some globally comparable standard.E) B) and C)
F) C) and D)

Question 18

Research shows programs like unemployment insurance,disability or health insurance,and job training can be effective in fighting:

Accepted Answer

A)   both transient and chronic poverty.
B)   transient poverty, but not chronic poverty.
C)   chronic poverty, but not transient poverty.
D)   neither transient nor chronic poverty.E) A) and D)
F) B) and C)

Question 19

Skill-biased technical change is:

Accepted Answer

A)   economic growth that derives from, and therefore benefits disproportionally, the highly-skilled, highly educated workers in a society.
B)   the change in technology that has caused many jobs to shift away from the service sector to the technology sector.
C)   the changing makeup of workforces in countries with large amounts of technology.
D)   None of these is true.E) A) and B)
F) A) and C)

Question 20

Which curve summarizes inequality visually?

Accepted Answer

A)   Laffer curve
B)   Income Inequality curve
C)   Gini curve
D)   Lorenz curveE) C) and D)
F) A) and C)

Exam 21: Poverty, Inequality, and Discrimination

The $1.90 (PPP) per day line was chosen by averaging the national poverty lines of 15 poor countries to represent:

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

In 2011,the Census Bureau introduced an alternate poverty measure that is based on:

Correct AnswerverifiedShow Answer

The practice of making choices using generalizations based on observable characteristics like race,gender,or age is called:

Correct AnswerverifiedShow Answer

In the United States,the official poverty line is calculated by multiplying:

Correct AnswerverifiedShow Answer

Research shows programs like unemployment insurance,disability or health insurance,and job training can be effective in fighting:

Correct AnswerverifiedShow Answer

A standard way to measure income mobility is to compare:

Correct AnswerverifiedShow Answer

An example of a social insurance program offered in the United States is:

Correct AnswerverifiedShow Answer

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 ______ the Lorenz curve is from/to the line of perfect equality,the _____ is the Gini coefficient,and the __________ income equality exists.

Correct AnswerverifiedShow Answer

Those who believe that overall economic growth is more important than the distribution of income would say that:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Since 1970,the poverty rate has largely fluctuated between:

Correct AnswerverifiedShow Answer

Skill-biased technical change is:

Correct AnswerverifiedShow Answer

Inequality within countries has been __________,and inequality between countries has been _________ in recent decades.

Correct AnswerverifiedShow Answer

Which curve summarizes inequality visually?

Correct AnswerverifiedShow Answer

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

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Most of Europe has relatively _______ inequality,and much of Latin America and southern Africa has relatively _________ inequality.

Correct AnswerverifiedShow Answer

Over the last 50 years,the rich have:

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The ____ the Lorenz curve is from/to the line of perfect equality,the _ is the Gini coefficient,and the ________ income equality exists.

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Inequality within countries has been __,and inequality between countries has been _ in recent decades.

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Most of Europe has relatively _ inequality,and much of Latin America and southern Africa has relatively ___ inequality.

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