Question 1

As of 2010,the Gini coefficient was 33.9 in India and 40.8 in the United States.We can interpret this to mean that inequality:

Accepted Answer

A)  is greater in India than the United States.
B)  is greater in the United States than in India.
C)  is about the same in the two countries.
D)  is not a problem in either country.E) None of the above
F) A) and C)

Question 2

One difference from private insurance programs is that social insurance programs:

Accepted Answer

A)  serve everyone who meets baseline eligibility requirements.
B)  use a sliding scale of payment based on ability to pay.
C)  are universally offered to everyone.
D)  None of these is true.E) A) and B)
F) None of the above

Question 3

The highest percentage of people who live on less than $1.25 a day live in:

Accepted Answer

A)  sub-Saharan Africa.
B)  South Asia.
C)  China.
D)  None of these is true.E) C) and D)
F) A) and B)

Question 4

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

Question 5

The US government began tracking poverty in the late:

Accepted Answer

A)  1950s.
B)  1960s.
C)  1970s.
D)  1940s.E) A) and C)
F) C) and D)

Question 6

In 2010,what percent of the population lived under the official poverty line in the United States?

Accepted Answer

A)  15.1 percent,higher than a near all-time low of 11.3 percent in 2000.
B)  11.3 percent,down from a near all-time high of 15.1 percent in 2000.
C)  15.1 percent,higher than a near all-time low of 3.11 percent in 2000.
D)  11.3 percent,down from a near all-time high of 25 percent in 2000.E) A) and B)
F) A) and C)

Question 7

The United States has had:

Accepted Answer

A)  high absolute mobility in the last century,and lower relative mobility.
B)  high relative mobility in the last century,and lower absolute mobility.
C)  low absolute mobility in the last century,but higher relative mobility.
D)  low relative mobility in the last century,and even lower absolute mobility.E) A) and B)
F) A) and C)

Question 8

Means tested government programs:

Accepted Answer

A)  define eligibility for benefits based on recipients' income.
B)  are meant to target resources toward those who need them most.
C)  can create perverse incentives.
D)  All of these are true.E) None of the above
F) A) and C)

Question 9

Progressive taxation serves which of the following goals of economic welfare policy?

Accepted Answer

A)  Redistribution of wealth
B)  Social insurance
C)  Economic growth
D)  Progressive taxation has all of these goals aimed at reducing inequality.E) A) and B)
F) A) and C)

Question 10

Over the last 50 years,the poor have:

Accepted Answer

A)  become richer at a slower rate than the rich,and so inequality has grown.
B)  become richer at a slower rate than the rich,and so inequality has decreased.
C)  become richer at the same rate as the rich,and so inequality has stayed the same.
D)  become poorer,while the rich have become richer,and so inequality has grown.E) A) and B)
F) A) and D)

Question 11

Which of the following could be considered a goal of policy to address poverty and inequality?

Accepted Answer

A)  Economic development
B)  Safety nets
C)  Redistribution
D)  All of these are goals of policy to address poverty and inequality.E) B) and D)
F) C) and D)

Question 12

An example of policy that aims to break the negative cycle of poverty and low human capital is:

Accepted Answer

A)  policy that improves schools.
B)  policy that offers training in job skills.
C)  policy that provides health care.
D)  All of these are examples of policy that can break the negative cycle of poverty and human capital.E) All of the above
F) B) and D)

Question 13

The absolute poverty line looks at _____________,and the relative poverty line captures ____________

Accepted Answer

A)  who cannot afford the basic necessities;what people can afford compared to those around them.
B)  what people can afford compared to those around them;who cannot afford the basic necessities.
C)  the percentage of the population that falls within the lowest quartile of income earners;the percentage of the population that earns 40 percent less than the median income.
D)  the percentage of the population that falls within the lowest quartile of income earners;what people can afford compared to those around them.E) A) and D)
F) C) and D)

Question 14

The goal of programs such as government-subsidized housing,food stamps,Medicaid are to:

Accepted Answer

A)  spur economic growth.
B)  redistribute wealth from the rich to the poor.
C)  provide a safety net to those who are close to transient poverty.
D)  None of these is true.E) All of the above
F) A) and B)

Question 15

Most countries in the world have Gini coefficients ranging from:

Accepted Answer

A)  0.25 to 0.60.
B)  0.20 to 0.85.
C)  0.10 to 0.50.
D)  0.30 to 0.40.E) B) and D)
F) A) and D)

Question 16

If the U.S.population were split into quintiles based on income,with the lowest quintile representing the poorest 20 percent,then those who earned the average income for the United States would be in the:

Accepted Answer

A)  second quintile.
B)  third quintile.
C)  fourth quintile.
D)  fifth quintile.E) All of the above
F) A) and B)

Question 17

Retirement benefits are less like __________,and more like _____________

Accepted Answer

A)  private insurance;collective savings program.
B)  social insurance programs;social savings programs.
C)  savings programs;private insurance.
D)  None of these is true.E) None of the above
F) A) and B)

Question 18

Conditional cash transfer program are program in which:

Accepted Answer

A)  financial support is given only to people who engage in certain actions.
B)  financial support is given only to people who have paid into the program for a minimum amount of time.
C)  financial support is given only to people who agree to pay it back at reduced interest to the government in the future.
D)  None of these is true.E) None of the above
F) A) and B)

Question 19

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

Question 20

Some say in-kind transfers are inefficient because:

Accepted Answer

A)  cash transfers allows utility-maximizing individuals to make the best decision about items they need.
B)  some of them get traded in a secondary market,implying inefficient distribution.
C)  it's not what most people want.
D)  everyone always prefers cash to goods and services.E) B) and C)
F) All of the above

Exam 21: Poverty, Inequality, and Discrimination

An example of policy that aims to break the negative cycle of poverty and low human capital is:

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Retirement benefits are less like __________,and more like _____________

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Conditional cash transfer program are program in which:

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Over the last 50 years,the poor have:

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Progressive taxation serves which of the following goals of economic welfare policy?

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Which of the following could be considered a goal of policy to address poverty and inequality?

Correct AnswerverifiedShow Answer

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

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The United States has had:

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In 2010,what percent of the population lived under the official poverty line in the United States?

Correct AnswerverifiedShow Answer

As of 2010,the Gini coefficient was 33.9 in India and 40.8 in the United States.We can interpret this to mean that inequality:

Correct AnswerverifiedShow Answer

One difference from private insurance programs is that social insurance programs:

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Means tested government programs:

Correct AnswerverifiedShow Answer

The highest percentage of people who live on less than $1.25 a day live in:

Correct AnswerverifiedShow Answer

The goal of programs such as government-subsidized housing,food stamps,Medicaid are to:

Correct AnswerverifiedShow Answer

The absolute poverty line looks at _____________,and the relative poverty line captures ____________

Correct AnswerverifiedShow Answer

Some say in-kind transfers are inefficient because:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

If the U.S.population were split into quintiles based on income,with the lowest quintile representing the poorest 20 percent,then those who earned the average income for the United States would be in the:

Correct AnswerverifiedShow Answer

The US government began tracking poverty in the late:

Correct AnswerverifiedShow Answer

Most countries in the world have Gini coefficients ranging from:

Correct AnswerverifiedShow Answer

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Retirement benefits are less like ,and more like ___

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The absolute poverty line looks at _,and the relative poverty line captures

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