Question 1

The key to understanding racial stratification in the United States is ______.&#10;A) income&#10;B) disability&#10;C) insurance&#10;D) wealth

Accepted Answer

Wealth, or the accumulation of assets such as property or investments, is a better indicator of racial stratification than income or insurance. This is because wealth represents long-term economic power and stability, while income may fluctuate and insurance may only provide temporary relief. Research has shown that white families have significantly more wealth than families of color, which perpetuates racial inequalities in areas such as education, housing, and access to healthcare.

Question 2

When was wealth data for average American families first collected?&#10;A) 1920s&#10;B) 1940s&#10;C) 1960s&#10;D) 1980s

Accepted Answer

Wealth data for average American families began to be systematically collected in the 1980s through surveys such as the Survey of Consumer Finances by the Federal Reserve.

Question 3

Much of the social science research on racial inequality has examined ______.&#10;A) jobs and wages&#10;B) family wealth&#10;C) human capital development&#10;D) wealth disparity

Accepted Answer

Jobs and wages are a major focus of social science research on racial inequality because they are key indicators of economic well-being and opportunity.

Question 4

Research suggests that, compared to white homeowners, African American homeowners ______.&#10;A) receive significant help from family members&#10;B) pay lower interest rates on home loans&#10;C) purchase their house on their own&#10;D) pay larger down payments on their home

Accepted Answer

Research indicates that African American homeowners are more likely to purchase their homes on their own, without significant financial assistance from family members, compared to white homeowners.

Question 5

Which statement most accurately reflects the individual model of wealth accumulation?&#10;A) It builds quickly in young families.&#10;B) It involves homeownership opportunities.&#10;C) It is used mostly during the working years.&#10;D) It is life-cycle sensitive.

Accepted Answer

The individual model of wealth accumulation is life-cycle sensitive, meaning that it takes into account the different stages of a person's life and the corresponding financial goals and resources available. It is not necessarily limited to young families or homeownership opportunities, and it may be used throughout different stages of one's working years.

Question 6

A tool that facilitates an examina?tion of the wealth condition of American families is known as the ______.&#10;A) Asset Poverty Line&#10;B) Federal Poverty Instrument&#10;C) Poverty Assessment Tool&#10;D) Bridge Out of Poverty

Accepted Answer

The Asset Poverty Line is a tool used to examine the wealth condition of American families by assessing their assets (such as savings, property, and investments) versus their debts. It takes into account long-term financial security, rather than just income, in determining poverty levels. The Federal Poverty Instrument and Poverty Assessment Tool are not specific to examining wealth and assets, and Bridge Out of Poverty is a program aimed at addressing poverty through education and community action, rather than a tool for examining wealth condition.

Question 7

What is Sandra McCord most concerned about?&#10;A) her children's futures&#10;B) obtaining her degree&#10;C) her parents' health&#10;D) finding a job

Accepted Answer

Sandra McCord's concern is mentioned in the question as "most concerned about." Out of the given options, the only concern that is mentioned for her is about her children's futures. Therefore, the correct answer is A.

Question 8

The standard metric of racial inequality is to compare the __________ of average White and Black families.&#10;A) wealth&#10;B) assets&#10;C) budgets&#10;D) incomes

Accepted Answer

The most commonly used metric of racial inequality in the United States is to compare the incomes of average White and Black families. This is because income is a direct measure of the financial resources individuals and families have available to them, and therefore a good indicator of economic and social status. Other measures, such as wealth or assets, may also be important indicators of inequality, but income is often viewed as the most reliable and easily measured metric.

Question 9

The baseline racial wealth gap also shows that Black families own __________ of wealth for every dollar owned by White families.&#10;A) one nickel&#10;B) one dime&#10;C) 50 cents&#10;D) 75 cents

Accepted Answer

Black families own roughly one dime for every dollar owned by White families, highlighting the significant racial wealth gap in the United States.

Question 10

Which statement accurately reflects research on the homeownership gap?&#10;A) The homeownership gap is widest for older age groups.&#10;B) Blacks can afford to buy homes earlier than Whites.&#10;C) The earlier a family buys a home, the greater the likelihood the home will create wealth.&#10;D) Few White couples purchase homes with financial assistance from their parents.

Accepted Answer

Research shows that the earlier a family buys a home, the greater the likelihood the home will create wealth, as home values tend to appreciate over time. This is particularly important for closing the homeownership gap between racial and ethnic groups. Option A is incorrect because the homeownership gap is widest for younger age groups, not older ones. Option B is incorrect because research shows that Blacks face significant barriers to homeownership due to discrimination in lending practices and other factors. Option D is also incorrect because research shows that White couples are more likely to receive financial assistance from their parents when purchasing a home than Black and Hispanic couples.

Question 11

Briefly describe the standard social science approach to examining racial inequality.

Accepted Answer

The answer of Briefly describe the standard social science approach...

Question 12

Explain one approach to boost affordable homeownership.

Accepted Answer

The answer of Explain one approach to boost affordable homeownership....

Question 13

What does the author mean by &#34;homes also have use value&#34;?

Accepted Answer

The answer of What does the author mean by &#34;homes...

Question 14

Discuss how many families use wealth.

Accepted Answer

The answer of Discuss how many families use wealth....

Deck 25: Race, Homeownership, and Wealth