Question 1

If a law firm prefers to hire men over women because the firm has found men to be more productive, on average, then the firm is practicing

Accepted Answer

A)   wage discrimination.
B)   reverse discrimination.
C)   statistical discrimination.
D)   human-capital discrimination.E) C) and D)
F) All of the above

Question 2

The Lorenz curve

Accepted Answer

A)   plots graphically the poverty rate over time.
B)   is located closer to the diagonal today than it was in 1975.
C)   plots graphically the distribution of income.
D)   is located farther from the diagonal when income is defined to include the value of noncash transfers.E) B) and D)
F) None of the above

Question 3

In the U.S. in 2010, the top 1 percent of households held 35 percent of total wealth, leaving 65 percent of wealth to the remaining 99 percent of households.

Accepted Answer

A) True 
 B)False

Question 4

Differences in skills or ability are one major reason for income differences in the United States.

Accepted Answer

A) True 
 B)False

Question 5

The poverty rate for African Americans is

Accepted Answer

A)   greater than for any other racial or ethnic group.
B)   below that for whites.
C)   considerably lower than that for Hispanics.
D)   below that for persons 65 years of age or older.E) B) and D)
F) None of the above

Question 6

(Consider This)  A "welfare cliff" refers to a situation where

Accepted Answer

A)   falling welfare benefits increase suicide rates.
B)   a welfare recipient's total income falls if they earn more money from work.
C)   government support for income assistance falls when the unemployment rate falls below a preset value.
D)   welfare benefits are withdrawn when a recipient hits the five-year program limit.E) None of the above
F) B) and D)

Question 7

Suppose the members of population A, consisting of Al, Bob, Curt, Doris, and Ellie, receive annual incomes of $5,000, $2,500, $1,250, $750, and $500, respectively. What percentage of total income is received by the richest quintile?

Accepted Answer

A)   50
B)   5
C)   25
D)   20E) A) and B)
F) A) and C)

Question 8

In a labor market generally biased against Hispanics, a reduction in the collective discrimination coefficients of employers will

Accepted Answer

A)   reduce the Hispanic wage rate, increase Hispanic employment, and lower the actual Hispanic-white wage ratio.
B)   reduce the Hispanic wage rate, decrease Hispanic employment, and lower the actual Hispanic-white wage ratio.
C)   increase the Hispanic wage rate, increase Hispanic employment, and increase the actual Hispanic-white wage ratio.
D)   increase the Hispanic wage rate, reduce Hispanic employment, and increase the actual Hispanic-white wage ratio.E) All of the above
F) B) and D)

Question 9

(Last Word)  Between 1995 and 2007 in the United States,

Accepted Answer

A)   average U.S. household wealth increased and median household wealth declined.
B)   average U.S. household wealth declined and median household wealth increased.
C)   both average and median U.S. household wealth declined.
D)   both average and median U.S. household wealth increased.E) None of the above
F) A) and B)

Question 10

Government programs, such as Social Security, food stamps, AFDC, SSI, Medicare, and Medicaid, that guarantee particular levels of transfer payments to all who fit the programs' criteria are called

Accepted Answer

A)   public assistance programs.
B)   social insurance programs.
C)   benefit-reduction programs.
D)   entitlement programs.E) A) and B)
F) C) and D)

Question 11

According to the standard government definitions, the percentage of the U.S. population now (2014)  considered to be living in poverty is about

Accepted Answer

A)   14.8 percent.
B)   23.6 percent.
C)   13.1 percent.
D)   46.7 percent.E) A) and D)
F) All of the above

Question 12

Since its inception in 1996, the Temporary Assistance for Needy Families (TANF)  program has

Accepted Answer

A)   increased, rather than reduced, the number of people on welfare.
B)   reduced the number of people on welfare by more than one-half.
C)   aided the poor by automatically increasing welfare payments when inflation occurs.
D)   greatly increased the unemployment rate.E) A) and D)
F) None of the above

Question 13

Minority workers are underrepresented and have less access to certain high-paying occupations. This illustrates

Accepted Answer

A)   human-capital discrimination.
B)   the crowding model.
C)   the taste-for-discrimination model.
D)   statistical discrimination.E) All of the above
F) C) and D)

Question 14

The difference between household assets and liabilities is referred to as

Accepted Answer

A)   debt.
B)   income.
C)   net worth.
D)   expenditures.E) None of the above
F) All of the above

Question 15

The entrance of large numbers of "baby boomers" into the labor force in the 1970s and 1980s

Accepted Answer

A)   caused substantial reductions in permanent unemployment.
B)   lessened income inequality.
C)   increased income inequality.
D)   had no impact on income inequality.E) B) and D)
F) All of the above

Question 16

The TANF program is designed to

Accepted Answer

A)   increase the minimum wage.
B)   shift people from welfare to employment.
C)   provide medical insurance to poverty-level workers.
D)   provide income to the blind and disabled.E) B) and C)
F) B) and D)

Question 17

The Social Security program is financed with funds from general tax revenues of the federal government.

Accepted Answer

A) True 
 B)False

Question 18

The top 20 percent of U.S. income earners receive nearly 80 percent of total U.S. income.

Accepted Answer

A) True 
 B)False

Question 19

The movement of individuals and households from one income quintile to another over time is called

Accepted Answer

A)   income averaging.
B)   wealth turnover.
C)   income mobility.
D)   the ratchet effect.E) B) and D)
F) B) and C)

Question 20

The poverty rate in the U.S. increased significantly in the period 2006-2014.

Accepted Answer

A) True 
 B)False

Exam 23: Income Inequality, Poverty, and Discrimination

If a law firm prefers to hire men over women because the firm has found men to be more productive, on average, then the firm is practicing

Correct AnswerverifiedShow Answer

(Last Word) Between 1995 and 2007 in the United States,

Correct AnswerverifiedShow Answer

The poverty rate in the U.S. increased significantly in the period 2006-2014.

Correct AnswerverifiedShow Answer

Government programs, such as Social Security, food stamps, AFDC, SSI, Medicare, and Medicaid, that guarantee particular levels of transfer payments to all who fit the programs' criteria are called

Correct AnswerverifiedShow Answer

The Social Security program is financed with funds from general tax revenues of the federal government.

Correct AnswerverifiedShow Answer

In a labor market generally biased against Hispanics, a reduction in the collective discrimination coefficients of employers will

Correct AnswerverifiedShow Answer

The entrance of large numbers of "baby boomers" into the labor force in the 1970s and 1980s

Correct AnswerverifiedShow Answer

The difference between household assets and liabilities is referred to as

Correct AnswerverifiedShow Answer

In the U.S. in 2010, the top 1 percent of households held 35 percent of total wealth, leaving 65 percent of wealth to the remaining 99 percent of households.

Correct AnswerverifiedShow Answer

Since its inception in 1996, the Temporary Assistance for Needy Families (TANF) program has

Correct AnswerverifiedShow Answer

The Lorenz curve

Correct AnswerverifiedShow Answer

Suppose the members of population A, consisting of Al, Bob, Curt, Doris, and Ellie, receive annual incomes of $5,000, $2,500, $1,250, $750, and $500, respectively. What percentage of total income is received by the richest quintile?

Correct AnswerverifiedShow Answer

The movement of individuals and households from one income quintile to another over time is called

Correct AnswerverifiedShow Answer

According to the standard government definitions, the percentage of the U.S. population now (2014) considered to be living in poverty is about

Correct AnswerverifiedShow Answer

The poverty rate for African Americans is

Correct AnswerverifiedShow Answer

(Consider This) A "welfare cliff" refers to a situation where

Correct AnswerverifiedShow Answer

Minority workers are underrepresented and have less access to certain high-paying occupations. This illustrates

Correct AnswerverifiedShow Answer

Differences in skills or ability are one major reason for income differences in the United States.

Correct AnswerverifiedShow Answer

The TANF program is designed to

Correct AnswerverifiedShow Answer

The top 20 percent of U.S. income earners receive nearly 80 percent of total U.S. income.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified