Question 1

The percentage of the U.S.population living in poverty during the 2000 to 2014 period

Accepted Answer

A)  decreased slightly.
B)  increased.
C)  remained relatively constant.
D)  decreased sharply.E) A) and D)
F) A) and C)

Question 2

The Supplemental Nutrition Assistance Program (SNAP)

Accepted Answer

A)  was previously known as the food-stamp program.
B)  added assistance to the food-stamp program by targeting children.
C)  was created to supplement the food consumption of low-income Social Security recipients.
D)  has been subject to widespread fraud through the illegal reproduction of paper food-stamp coupons.E) A) and B)
F) C) and D)

Question 3

Which of the following statements about the Temporary Assistance for Needy Families (TANF)  program is not true?

Accepted Answer

A)  It expanded the eligibility for and scope of the nation's welfare program.
B)  It is the basic welfare program for low-income families in the U.S.
C)  In 1996, it replaced the six-decade-old Aid for Families with Dependent Children (AFD
C)   welfare program.
D)  It led to a reduction in the number of welfare recipients and an increase in the employment rate of single mothers in the years after its adoption.E) A) and B)
F) All of the above

Question 4

In the U.S., the top 20 percent of households received a little more than 50 percent of total pretax income in 2014.

Accepted Answer

A) True 
 B)False

Question 5

A Lorenz curve showing perfect equality in the distribution of income

Accepted Answer

A)  coincides with the horizontal axis.
B)  coincides with the vertical axis.
C)  is a straight line with a 45-degree angle.
D)  is a curve bowed to the southwest.E) None of the above
F) B) and C)

Question 6

Which of the following would be evidence of an increase in income inequality over time in the United States?

Accepted Answer

A)  an increase in the percentage of total household income received by the lowest quintile
B)  an increase in the percentage of total household income received by the highest quintile
C)  an increase in the percentage of total household income received by the four lowest quintiles
D)  a decrease in the percentage of total household income received by the highest quintileE) B) and C)
F) None of the above

Question 7

The crowding model of occupational segregation predicts that domestic output will increase if occupational segregation is ended.

Accepted Answer

A) True 
 B)False

Question 8

Greater income equality that is achieved through the redistribution of income is thought to

Accepted Answer

A)  stimulate innovation and entrepreneurship.
B)  promote economic efficiency in the economy.
C)  increase incentives to work, save, and invest in the economy.
D)  come at the opportunity cost of reduced production and income.E) A) and D)
F) A) and B)

Question 9

In 2014, the poverty line for a family of four was about

Accepted Answer

A)  $15,508.
B)  $30,453.
C)  $24,230.
D)  $38,754.E) All of the above
F) A) and B)

Question 10

Which of the following would be an example of how pure luck contributes to income inequality?

Accepted Answer

A)  approval to receive unemployment benefits
B)  receipt of a government grant for housing
C)  selection as winner of a state lottery
D)  admission to a state universityE) B) and D)
F) None of the above

Question 11

About a quarter of all U.S.households had personal incomes of $100,000 or more in 2014.

Accepted Answer

A) True 
 B)False

Question 12

The U.S.income-maintenance program consists of two kinds of programs.They are

Accepted Answer

A)  the minimum wage law and Social Security.
B)  antidiscrimination law and education and training programs.
C)  social insurance and public assistance programs.
D)  progressive income taxes and transfer payments.E) None of the above
F) All of the above

Question 13

Wealth in the United States is

Accepted Answer

A)  distributed in a way that reduces the degree of income inequality.
B)  more unequally distributed than is income.
C)  less unequally distributed than is income.
D)  distributed in a way that has no effect on income inequality.E) C) and D)
F) B) and D)

Question 14

Which one of the following is not a cash transfer program?

Accepted Answer

A)  TANF
B)  Supplemental Security Income (SSI) 
C)  low-rent public housing
D)  Social SecurityE) A) and C)
F) A) and B)

Question 15

The greater the degree of inequality in the distribution of income, the more bowed will be the Lorenz curve toward the

Accepted Answer

A)  upper left-hand corner.
B)  upper right-hand corner.
C)  lower right-hand corner.
D)  lower left-hand corner.E) A) and D)
F) B) and D)

Question 16

Suppose that white workers are getting paid $21/hour, while similarly productive African-American workers are getting paid $18/hour.A prejudiced white employer with a discrimination coefficient of $24/hour will

Accepted Answer

A)  hire African Americans only if their wage rate falls to $3/hour.
B)  hire African-American workers.
C)  not hire African Americans at all, even if they offer to work for free.
D)  not hire African Americans, unless they work for free.E) A) and B)
F) C) and D)

Question 17

Statistical discrimination occurs when employers base hiring decisions on individual workers' previous employment records and statistics.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is not a major complaint about the official income data used in measuring poverty?

Accepted Answer

A)  The income and poverty data are not frequently measured and released.
B)  The income data do not aptly measure purchasing power, especially in major metropolitan areas.
C)  The income data do not adequately measure households' consumption levels.
D)  The income data do not account for noncash transfers and benefits.E) None of the above
F) All of the above

Question 19

Which of the following would be considered part of income?

Accepted Answer

A)  wages and salaries
B)  the value of a house
C)  corporate stock holdings
D)  money in a bank accountE) None of the above
F) A) and B)

Question 20

The closer the Lorenz curve is to the diagonal, the greater is the degree of income inequality.

Accepted Answer

A) True 
 B)False

Exam 23: Income Inequality, Poverty, and Discrimination

The percentage of the U.S.population living in poverty during the 2000 to 2014 period

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Which of the following statements about the Temporary Assistance for Needy Families (TANF) program is not true?

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A Lorenz curve showing perfect equality in the distribution of income

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Which of the following would be considered part of income?

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The crowding model of occupational segregation predicts that domestic output will increase if occupational segregation is ended.

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About a quarter of all U.S.households had personal incomes of $100,000 or more in 2014.

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Which one of the following is not a cash transfer program?

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Greater income equality that is achieved through the redistribution of income is thought to

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In 2014, the poverty line for a family of four was about

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The U.S.income-maintenance program consists of two kinds of programs.They are

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Suppose that white workers are getting paid $21/hour, while similarly productive African-American workers are getting paid $18/hour.A prejudiced white employer with a discrimination coefficient of $24/hour will

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Statistical discrimination occurs when employers base hiring decisions on individual workers' previous employment records and statistics.

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Which of the following is not a major complaint about the official income data used in measuring poverty?

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In the U.S., the top 20 percent of households received a little more than 50 percent of total pretax income in 2014.

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The closer the Lorenz curve is to the diagonal, the greater is the degree of income inequality.

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Wealth in the United States is

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Which of the following would be evidence of an increase in income inequality over time in the United States?

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The greater the degree of inequality in the distribution of income, the more bowed will be the Lorenz curve toward the

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Which of the following would be an example of how pure luck contributes to income inequality?

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The Supplemental Nutrition Assistance Program (SNAP)

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