Question 1

Which of the following is 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) A) and D)
F) B) and C)

Question 2

The transient poor are people who spend _______ in poverty.

Accepted Answer

A)  three or more consecutive years
B)  at least two consecutive months
C)  more than one year
D)  at least six consecutive monthsE) A) and B)
F) B) and C)

Question 3

Income mobility is:

Accepted Answer

A)  how much income is stored in offshore banks.
B)  the ability to improve one's economic circumstances over time.
C)  how likely the income associated with each job in the country will change in relative terms.
D)  the increase in the income associated with each job in the country that occurs over time.E) None of the above
F) A) and C)

Question 4

Critics of the U.S. definition of poverty claim it is an inaccurate measure of the poor because:

Accepted Answer

A)  it is a single number that does not capture regional differences in the cost of living.
B)  the ratio of food consumption to total income is different now than when the definition of poverty was defined.
C)  it fails to account accurately for expenditures other than food.
D)  All of these are true.E) B) and C)
F) A) and C)

Question 5

A standard way to measure income mobility is to compare:

Accepted Answer

A)  a person's income to their parents' income.
B)  a person's earliest income to their income at retirement.
C)  a person's education level to their parents' education level.
D)  None of these are used to measure income mobility.E) B) and D)
F) C) and D)

Question 6

Most countries in the world have Gini coefficients ranging from:

Accepted Answer

A)  85 to 95.
B)  25 to 60.
C)  05 to .2.
D)  6 to 8.E) All of the above
F) B) and C)

Question 7

Those who believe that overall economic growth is more important than the distribution of income believe 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 a society is not getting richer, it can never become more equal.
D)  All of these are true.E) B) and D)
F) All of the above

Question 8

The chronically poor are people who spend _______ in poverty.

Accepted Answer

A)  three or more consecutive years
B)  at least two consecutive months
C)  more than one year
D)  at least six consecutive monthsE) C) and D)
F) B) and D)

Question 9

Which of the following statements is true about the equality of a society?

Accepted Answer

A)  The more equal a society is, the more the economy grows, so the best economy is the most equal.
B)  The more equal a society is, the more everyone gains when the economy improves, but that doesn't mean the most equal society is the best society.
C)  Economic growth will create imbalance in an otherwise equal society, and the government will need to work to equalize incomes.
D)  Economic growth in an equal society will provide more resources for its disadvantaged members.E) B) and C)
F) A) and D)

Question 10

One of the factors that causes differences in income distribution across countries is:

Accepted Answer

A)  the extent to which governments redistribute income through the public budget.
B)  the number of jobs that are available in each country.
C)  the labor force participation rate within different countries.
D)  how many income earners there are relative to total population.E) All of the above
F) A) and D)

Question 11

Inequality within countries has been _______ in recent decades.

Accepted Answer

A)  increasing
B)  holding steady
C)  decreasing
D)  effectively perfectE) A) and C)
F) None of the above

Question 12

A plan to revitalize the downtown area of a struggling city would fulfill which of the following goals to address poverty and inequality?

Accepted Answer

A)  Economic development
B)  Safety nets
C)  Redistribution
D)  None of these are true.E) A) and D)
F) B) and C)

Question 13

The graph shown displays a Lorenz curve.  Which of the following statements is true? The midpoint of each line demonstrates the area with least inequality.Curve A demonstrates a more equal society than curve B.On both curves, individuals in the 99th percentile of the income distribution earn more than 1 percent of the total income.

Accepted Answer

A)  I only
B)  II and III only
C)  I and III only
D)  I, II, and IIIE) None of the above
F) B) and C)

Question 14

The graph shown displays the Lorenz curve for a society.  If area A in the graph is equal to 1,200 and area B is equal to 3,800, what is the Gini coefficient?

Accepted Answer

A)  3.17
B)  0.32
C)  0.24
D)  0.76E) A) and B)
F) B) and C)

Question 15

What is the goal of programs such as government-subsidized housing, food stamps, and Medicaid?

Accepted Answer

A)  Spur economic growth.
B)  Redistribute wealth from the rich to the poor.
C)  Reduce the time people spend in transient poverty.
D)  None of these are true.E) A) and C)
F) B) and C)

Question 16

The more human capital someone has, the more likely they will:

Accepted Answer

A)  be unemployable.
B)  earn more money.
C)  not benefit from specializing.
D)  All of these are true.E) All of the above
F) A) and C)

Question 17

Today, the greatest number of poor are _______ Americans, but the poverty rate for _______ Americans is higher.

Accepted Answer

A)  white; black and Hispanic
B)  black; white
C)  black and Hispanic; white
D)  white; HispanicE) None of the above
F) C) and D)

Question 18

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 growth in technology that has caused many jobs to shift away from the service sector to the technology sector.
C)  the changing makeup of the workforce in countries with large amounts of technology.
D)  None of these are true.E) A) and B)
F) C) and D)

Question 19

Members of the top quintile of income earners in every country today earn disproportionately:

Accepted Answer

A)  more than those in the bottom quintile.
B)  less than they did 100 years ago.
C)  less than those in the middle quintile.
D)  All of these are true.E) B) and C)
F) C) and D)

Question 20

A Gini coefficient of zero indicates:

Accepted Answer

A)  no income is being earned.
B)  an error was made in the calculation.
C)  perfect inequality exists.
D)  perfect equality exists.E) A) and B)
F) A) and C)

Exam 21: Poverty, Inequality, and Discrimination

The more human capital someone has, the more likely they will:

Correct Answer
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Correct Answer
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What is the goal of programs such as government-subsidized housing, food stamps, and Medicaid?

Correct Answer
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Skill-biased technical change is:

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

Correct Answer
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Which of the following is a goal of policy to address poverty and inequality?

Correct Answer
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The graph shown displays the Lorenz curve for a society. If area A in the graph is equal to 1,200 and area B is equal to 3,800, what is the Gini coefficient?

Correct Answer
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Inequality within countries has been _______ in recent decades.

Correct Answer
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Today, the greatest number of poor are _ Americans, but the poverty rate for _ Americans is higher.

Correct Answer
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A Gini coefficient of zero indicates:

Correct Answer
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Critics of the U.S. definition of poverty claim it is an inaccurate measure of the poor because:

Correct Answer
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The transient poor are people who spend _______ in poverty.

Correct Answer
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Most countries in the world have Gini coefficients ranging from:

Correct Answer
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One of the factors that causes differences in income distribution across countries is:

Correct Answer
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Members of the top quintile of income earners in every country today earn disproportionately:

Correct Answer
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Income mobility is:

Correct Answer
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A standard way to measure income mobility is to compare:

Correct Answer
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Which of the following statements is true about the equality of a society?

Correct Answer
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The chronically poor are people who spend _______ in poverty.

Correct Answer
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A plan to revitalize the downtown area of a struggling city would fulfill which of the following goals to address poverty and inequality?

Correct Answer
verified

Exam 21: Poverty, Inequality, and Discrimination

The more human capital someone has, the more likely they will:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

What is the goal of programs such as government-subsidized housing, food stamps, and Medicaid?

Correct AnswerverifiedShow Answer

Skill-biased technical change is:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following is a goal of policy to address poverty and inequality?

Correct AnswerverifiedShow Answer

The graph shown displays the Lorenz curve for a society. If area A in the graph is equal to 1,200 and area B is equal to 3,800, what is the Gini coefficient?

Correct AnswerverifiedShow Answer

Inequality within countries has been _______ in recent decades.

Correct AnswerverifiedShow Answer

Today, the greatest number of poor are _______ Americans, but the poverty rate for _______ Americans is higher.

Correct AnswerverifiedShow Answer

A Gini coefficient of zero indicates:

Correct AnswerverifiedShow Answer

Critics of the U.S. definition of poverty claim it is an inaccurate measure of the poor because:

Correct AnswerverifiedShow Answer

The transient poor are people who spend _______ in poverty.

Correct AnswerverifiedShow Answer

Most countries in the world have Gini coefficients ranging from:

Correct AnswerverifiedShow Answer

One of the factors that causes differences in income distribution across countries is:

Correct AnswerverifiedShow Answer

Members of the top quintile of income earners in every country today earn disproportionately:

Correct AnswerverifiedShow Answer

Income mobility is:

Correct AnswerverifiedShow Answer

A standard way to measure income mobility is to compare:

Correct AnswerverifiedShow Answer

Which of the following statements is true about the equality of a society?

Correct AnswerverifiedShow Answer

The chronically poor are people who spend _______ in poverty.

Correct AnswerverifiedShow Answer

A plan to revitalize the downtown area of a struggling city would fulfill which of the following goals to address poverty and inequality?

Correct AnswerverifiedShow Answer

Correct Answer
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Today, the greatest number of poor are _ Americans, but the poverty rate for _ Americans is higher.

Correct Answer
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