Deck 7: Poverty: the Central Concept

Question 1

When exploring if non-cash benefits should be counted,

A)conservatives argue that in-kind benefits should be counted as income.
B)liberals argue that in-kind benefits should be considered when we define and measure poverty.
C)Both A and B
D)Neither A nor B

Answer 1

C

Question 2

We wish to compare the income distribution in two countries using a Gini coefficient.If Country A has a Gini coefficient of .197,which of the following would indicate a country with a more equal distribution?

A))123
B))197
C))450
D)Gini coefficients cannot be directly compared.

Answer 2

A

Question 3

What proportion of poor families is headed by women?

A)10%
B)25%
C)40%
D)50%

Answer 3

D

Question 4

Which statement is more accurate?

A)The top 1% of families own nearly 24% of all privately held wealth.
B)The bottom 17% of the population own nothing at all.
C)Both A and B
D)Neither A nor B

Question 5

If income were distributed equally in this country,the Lorenz curve would be:

A)A diagonal line rising from left to right.
B)A horizontal line.
C)A vertical line.
D)A diagonal line decreasing from left to right.

Question 6

What proportion of people who are classified as poor during this year are likely to be so classified next year?

A)40%
B)50%
C)60%
D)70%

Question 7

When exploring if the poverty line should be based on net disposable income,

A)the growth of the working poor creates two major inaccuracies in the povery measure.
B)even after taxes,the income is further reduced by work-related expenses,primarily child care.
C)both liberals and conservatives agree that something should be done to to base the poverty line on actual disposable income rather than gross income.
D)All of the above

Question 8

Which of the following statements is true of how liberals view fiscal inequality?

A)The growth of inequality and conclude that it is a fact,that it is getting worse,and that this is a result of unjust social and economic pressures.
B)Inequality in the United States is caused less by unfairness than by the age structure of the labor force.Thus the same person will be at different positions along the Lorez curve during portions of their lives.
C)Both A and B
D)Neither A nor B

Question 9

In 2004,the top 1% of families in the United States owned:

A)10% of all privately held wealth.
B)25% of all privately held wealth.
C)33% of all privately held wealth.
D)40% of all privately held wealth.

Question 10

A relative definition of poverty is

A)a relatively fixed level of income above which a person cannot function in a productive and efficient manner in a give society.
B)poverty is viewed as relative to the wealth of the rest of society.
C)Both A and B
D)Neither A nor B

Question 11

The bottom 20% of the population in the United States receives:

A)5% of the income.
B)20% of the income.
C)3)5% of the income.
D)10% of the income.

Question 12

How many Americans are living below the poverty line?

A)1 million
B)28 million
C)37 million
D)103 million

Question 13

In the United States,the relative poverty line is set:

A)by annual surveys.
B)through calculation of necessities.
C)as a percentage of median income.
D)All of the above.

Question 14

If income were distributed equally in this country,every household would have received about how much in 2005?

A)$50,000
B)$85,000
C)$152,000
D)$518,000

Question 15

Which of the following statements is true of how conservatives view fiscal inequality?

A)The growth of inequality and conclude that it is a fact,that it is getting worse,and that this is a result of unjust social and economic pressures.
B)Inequality in the United States is caused less by unfairness than by the age structure of the labor force.Thus the same person will be at different positions along the Lorez curve during portions of their lives.
C)Both A and B
D)Neither A nor B

Question 16

The Lorenz Curve is

A)a curve that shows the percertage of total household incomes received successively larger fractions of the population,starting with the poorest group.
B)a curve tha tshows the area between the Gini Curve and line OE,divided by OEZ.
C)Both A and B
D)Neither A nor B

Question 17

Which of these statements is NOT true?

A)Trends in the distribution of wealth and income have shown that the wealthy and the poor are maintaining stagnant levels of financial growth.
B)Trends in the distribution of wealth and income have shown that the wealthy are getting substantially wealthier.
C)Trends in the distribution of wealth and income have shown that the poor are getting substantially wealthier.
D)None of the above

Question 18

In a 15-year period ending in 1993,the richest 1% of families doubled their income.What happened to their tax rate?

A)It increased 15%.
B)It increased 25%.
C)It stayed the same.
D)It decreased 23%.

Question 19

When exploring if the poverty line is set at a realistic level,

A)conservatives argue that the poverty line is set at too low level,noting that they believe total needs from spending on food is incorrect.
B)liberals argue that the poverty line is set at too high a level,noting that the USDA itself estimates tha only 10% of the persons spending the amount allowed in the economy food budget are able to get a nutritionally adequate diet.
C)radicals argue that the poverty line needs to be dismantle,no baseline sould be set for defining poverty
D)None of the above

Question 20

An absolute definition of poverty is:

A)a relatively fixed level of income above which a person cannot function in a productive and efficient manner in a give society.
B)poverty is viewed as relative to the wealth of the rest of society.
C)Both A and B
D)Neither A nor B

Question 21

When poverty is defined as both a lack of money and as a lifestyle,it is a:

A)relative definition.
B)cultural definition.
C)absolute definition.
D)all of the above.

Question 22

Some conservatives believe that rich people are entitled to hundreds of times the income of regular people because:

A)They take great risks,often losing everything,so when their risks pay off,they should be rewarded.
B)Rich people create more wealth for all of us.
C)Rich people do not consume their wealth.
D)All of the above.

Question 23

Definitions of poverty based on calculations derived from minimum costs of food,housing,clothing and transportation are:

A)absolute definitions.
B)cultural definitions.
C)relative definitions.
D)dictionary definitions.

Question 24

Liberals criticize trickle-down theory because:

A)no amount of inequality is acceptable.
B)inequality is increasing,but the number of people below the poverty line has remained the same.
C)social efficiency could be attained with less inequality.
D)all of the above.