Question 1

The U.S.poverty rate for:

Accepted Answer

A)   Hispanics is higher than that for African Americans.
B)   children under 18 years of age is higher than for the overall population.
C)   African Americans has increased since 1993.
D)   foreign-born individuals who are not citizens is below the poverty rate for the general population.

Question 2

The standard data on income distribution do not include the value of noncash transfers as income.

Accepted Answer

A) True 
 B)False

Question 3

The TANF program:

Accepted Answer

A)   is a form of social insurance.
B)   has been found to be unconstitutional by the Supreme Court.
C)   limits total lifetime welfare benefits to 5 years and requires able-bodied adults to work after receiving benefits for 2 years.
D)   perpetuates the so-called culture of poverty.

Question 4

(Consider This) According to The Economist magazine,growing income inequality is less of a concern because:

Accepted Answer

A)   it is increasing at a decreasing rate.
B)   the poor have increasingly better access to goods and services once only available to the rich.
C)   poverty rates have fallen below 10 percent.
D)   government transfers eliminate virtually all consumption inequality.

Question 5

For an employer biased against African Americans,the discrimination coefficient d:

Accepted Answer

A)   will decrease if the employer becomes more prejudiced against African Americans.
B)   must equal the actual ratio of African-American to white wage rates.
C)   measures the amount an employer is willing to pay to hire a white over hiring an African-American worker.
D)   varies inversely with the actual African-American-white wage ratio.

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

Discrimination creates a:

Accepted Answer

A)   redistribution of a larger domestic output.
B)   larger domestic output but no redistribution.
C)   smaller domestic output but no redistribution.
D)   redistribution of a smaller domestic output.

Question 8

Statistical discrimination:

Accepted Answer

A)   can persist in the long run if differences in average characteristics among groups continue.
B)   will tend to diminish in the long run because nondiscriminating firms will drive out discriminating firms.
C)   requires that employers have discrimination coefficients greater than zero.
D)   is also known as occupational segregation.

Question 9

In 2010,the wealthiest 1 percent of U.S.households held about ____ percent of U.S.household wealth.

Accepted Answer

A)   35.
B)   77.
C)   23.
D)   32.

Question 10

Statistical discrimination:

Accepted Answer

A)   is malicious.
B)   is profitable but not malicious.
C)   cannot persist because of competition.
D)   explains all occupational discrimination.

Question 11

The lowest quintile of households in the income distribution receives about:

Accepted Answer

A)   2.4 percent of the total income.
B)   3.2 percent of the total income.
C)   8.4 percent of the total income.
D)   10 percent of the total income.

Question 12

Labor market discrimination increases the size of the nation's GDP by promoting specialization on the basis of race.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

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,or "welfare."
D)   progressive income taxes and transfer payments.

Question 15

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.

Question 16

An employer whose discrimination coefficient is $4 will:

Accepted Answer

A)   refuse to hire nonpreferred-race workers at any wage rate.
B)   hire only nonpreferred-race workers if the actual nonpreferred-preferred wage differential is $3 an hour.
C)   hire only preferred-race workers if the actual nonpreferred-preferred wage differential is $3 an hour.
D)   hire only preferred-race workers if the nonpreferred-preferred wage differential is $4.

Question 17

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.

Question 18

By December 2009,the recession that began in December 2007:

Accepted Answer

A)   had shifted 2 million people out of TANF and into the unemployment compensation system.
B)   doubled the number of people on welfare.
C)   raised the number of TANF recipients from 3.9 million to about 4.4 million.
D)   raised the number of TANF recipients to about 5 percent of the population.

Question 19

Which of the following groups has the lowest poverty rate?

Accepted Answer

A)   Married-couple families.
B)   Whites.
C)   Foreign-born (not citizens) .
D)   Asians.

Question 20

The primary purpose of Social Security is to:

Accepted Answer

A)   subsidize families in need.
B)   offset the progressiveness of the personal income tax.
C)   provide income for workers who are temporarily unemployed.
D)   provide income for retired and disabled workers.

Exam 22: Income Inequality Poverty and Discrimination

The U.S.poverty rate for:

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An employer whose discrimination coefficient is $4 will:

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Discrimination creates a:

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For an employer biased against African Americans,the discrimination coefficient d:

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

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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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Statistical discrimination:

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

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(Consider This) According to The Economist magazine,growing income inequality is less of a concern because:

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The standard data on income distribution do not include the value of noncash transfers as income.

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By December 2009,the recession that began in December 2007:

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The primary purpose of Social Security is to:

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Statistical discrimination:

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In 2010,the wealthiest 1 percent of U.S.households held about ____ percent of U.S.household wealth.

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The TANF program is designed to:

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The lowest quintile of households in the income distribution receives about:

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Labor market discrimination increases the size of the nation's GDP by promoting specialization on the basis of race.

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Which of the following groups has the lowest poverty rate?

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The TANF program:

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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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