Question 1

The EITC differs from other programs in that

Accepted Answer

A)  it is administered by the states rather than the Federal government.
B)  it is administered by the Internal Revenue Service rather than a human services agency.
C)  it is part of the Social Security system.
D)  it provides actual food.E) A) and B)
F) A) and C)

Question 2

Which of the following programs are in cash?

Accepted Answer

A)  AFDC/TANF
B)  EITC
C)  WIC
D)  AFDC/TANF and EITCE) B) and C)
F) All of the above

Question 3

Which of the following groups is under-represented in the poverty statistics relative to their overall U.S. population?

Accepted Answer

A)  Whites (non-Hispanic) .
B)  Blacks (non-Hispanic) .
C)  Hispanics.
D)  AsiansE) None of the above
F) A) and B)

Question 4

Because the AFDC program reduced benefits by almost $1 for every $1 earned, a single parent of two small children requiring day care would have to

Accepted Answer

A)  resort to crime just to make ends meet.
B)  work fulltime earning at least one-half the minimum wage to be better off working than on welfare.
C)  work fulltime earning at least the minimum wage to be better off working than on welfare.
D)  work fulltime earning at least twice the minimum wage to be better off working than on welfare.E) A) and B)
F) B) and D)

Question 5

Some economists believe that poverty can be good for the economy, since

Accepted Answer

A)  the desire to avoid poverty provides a powerful incentive to "work hard and play by the rules".
B)  countries with high rates of economic growth since the 1980s tend to have less income inequality.
C)  poverty seems to encourage gambling.
D)  poverty discourages child-bearing, leaving women with more time to work.E) A) and B)
F) A) and C)

Question 6

In 2014 the fraction of families living in poverty that were headed by single mothers of children under age 18 is

Accepted Answer

A)  22%.
B)  34%.
C)  45%.
D)  68%.E) A) and D)
F) C) and D)

Question 7

The majority of the poor are

Accepted Answer

A)  white, non-Hispanic.
B)  Hispanic.
C)  black, non-Hispanic.
D)  no one ethnic group makes up the majority.E) A) and C)
F) B) and D)

Question 8

Which of the following is true about poor populations?

Accepted Answer

A)  There are fewer poor whites than poor blacks.
B)  The poor are disproportionately black and Hispanic.
C)  The poor are less likely to be children than the elderly.
D)  The poor are more likely to have graduated from high school.E) C) and D)
F) A) and B)

Question 9

The incentives built into nearly all welfare programs

Accepted Answer

A)  encourage work.
B)  encourage family planning.
C)  discourage marriage.
D)  encourage savings.E) A) and B)
F) None of the above

Question 10

Which of the following is a goal of a welfare system?

Accepted Answer

A)  To make recipients happy.
B)  To reduce the number of children born.
C)  To provide an incentive to leave the system.
D)  To stimulate economic growth.E) A) and D)
F) B) and C)

Question 11

The 1996 Welfare reform laws had the impact of

Accepted Answer

A)  eliminating poverty.
B)  doubling the poverty rate.
C)  increasing work by welfare recipients.
D)  halving the number of people in poverty.E) A) and D)
F) B) and C)

Question 12

Which of the following is the most costly program for the poor?

Accepted Answer

A)  Medicaid
B)  AFDC/TANF
C)  WIC
D)  SNAP (Food Stamps) E) A) and B)
F) A) and C)

Question 13

The fact that the poverty line does not account for day care costs suggests that it is set too

Accepted Answer

A)  high and the poverty rate is therefore understated.
B)  high and the poverty rate is therefore overstated.
C)  low and the poverty rate is therefore understated.
D)  low and the poverty rate is therefore overstated.E) A) and B)
F) B) and C)

Question 14

Which of the following is a goal of a welfare system?

Accepted Answer

A)  To make recipients happy.
B)  To maintain political support by not being overly expensive.
C)  To reduce the number of children born.
D)  None of the above.E) All of the above
F) A) and D)

Question 15

Which of the following groups has the lowest poverty rate?

Accepted Answer

A)  Whites.
B)  The elderly.
C)  Children.
D)  People with bachelor's degrees.E) A) and B)
F) A) and C)

Question 16

Since the year 1959, the poverty rate has

Accepted Answer

A)  increased very slightly.
B)  increased significantly.
C)  remained almost unchanged.
D)  decreased significantly.E) B) and D)
F) A) and D)

Question 17

Because of an increase in the work-force participation rate for women, the availability of uncompensated child care (free care by aunts, sisters, and grandmothers) has become less available to poor women so as a consequence the fact that child care must now be paid for suggests that the

Accepted Answer

A)  poverty line should be revised upward.
B)  poverty line should be revised downward.
C)  poverty gap is overstated.
D)  poverty rate is overstated.E) None of the above
F) C) and D)

Question 18

If the poverty line is set too high, the official poverty rate will be

Accepted Answer

A)  lower than the true level.
B)  unaffected by this problem.
C)  higher than the true level.
D)  negative.E) All of the above
F) A) and B)

Question 19

In 2014, the poverty rate among children under age 18 was approximately

Accepted Answer

A)  21percent.
B)  29 percent.
C)  36 percent.
D)  45 percent.E) B) and C)
F) A) and D)

Question 20

Which of the following is false?

Accepted Answer

A)  The poverty rate among the elderly is greater than the poverty rate among children.
B)  The poverty rate among women is greater than the poverty rate among men.
C)  The poverty rate among whites is greater than the poverty rate among blacks.
D)  The poverty rate among Hispanics is greater than the poverty rate among whites.E) C) and D)
F) None of the above

Exam 38: Poverty and Welfare

Which of the following is true about poor populations?

Correct AnswerverifiedShow Answer

The incentives built into nearly all welfare programs

Correct AnswerverifiedShow Answer

The fact that the poverty line does not account for day care costs suggests that it is set too

Correct AnswerverifiedShow Answer

Which of the following is a goal of a welfare system?

Correct AnswerverifiedShow Answer

Which of the following is the most costly program for the poor?

Correct AnswerverifiedShow Answer

Some economists believe that poverty can be good for the economy, since

Correct AnswerverifiedShow Answer

If the poverty line is set too high, the official poverty rate will be

Correct AnswerverifiedShow Answer

Which of the following is a goal of a welfare system?

Correct AnswerverifiedShow Answer

Which of the following groups is under-represented in the poverty statistics relative to their overall U.S. population?

Correct AnswerverifiedShow Answer

The majority of the poor are

Correct AnswerverifiedShow Answer

Which of the following programs are in cash?

Correct AnswerverifiedShow Answer

In 2014 the fraction of families living in poverty that were headed by single mothers of children under age 18 is

Correct AnswerverifiedShow Answer

The 1996 Welfare reform laws had the impact of

Correct AnswerverifiedShow Answer

Since the year 1959, the poverty rate has

Correct AnswerverifiedShow Answer

The EITC differs from other programs in that

Correct AnswerverifiedShow Answer

Because of an increase in the work-force participation rate for women, the availability of uncompensated child care (free care by aunts, sisters, and grandmothers) has become less available to poor women so as a consequence the fact that child care must now be paid for suggests that the

Correct AnswerverifiedShow Answer

Which of the following is false?

Correct AnswerverifiedShow Answer

Which of the following groups has the lowest poverty rate?

Correct AnswerverifiedShow Answer

Because the AFDC program reduced benefits by almost $1 for every $1 earned, a single parent of two small children requiring day care would have to

Correct AnswerverifiedShow Answer

In 2014, the poverty rate among children under age 18 was approximately

Correct AnswerverifiedShow Answer

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