Question 1

Reform to the welfare system in the United States in 1996:

Accepted Answer

The welfare reform in the United States in 1996 defined a maximum period of eligibility, with a lifetime limit of five years on federal cash assistance (TANF). This means that individuals could not receive cash assistance for more than five years in their lifetime. Therefore, choice A is the correct answer as it defines the maximum period of eligibility. Choices B, C, and D are not correct as they are not the objectives of the welfare system reform in 1996.

Question 2

Which of the following statements is true?

Accepted Answer

According to the passage, studies have shown that "recipients generally prefer cash to noncash benefits because they believe they know how to spend their money better than the government does." Therefore, cash benefits provide more satisfaction to recipients than an equal level of noncash benefits. The passage does not provide any information to support options A, B, or D.

Question 3

Which of the following statements is true regarding welfare reform in 1996?

Accepted Answer

The welfare reform in 1996, also known as the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA), was designed to move people out of welfare and into work. It focused on providing job training, education, and childcare assistance to help individuals become self-sufficient and reduce dependence on government assistance.

Question 4

Economists define discrimination as occurring when:

Accepted Answer

Discrimination in economics refers to the unequal treatment of people with similar characteristics, such as sex, race, or ethnicity, leading to different economic outcomes. This can occur in various forms such as differences in employment opportunities, wages, and job promotions. Option A is a specific example of discrimination and Option C is gender discrimination. Option D is not a precise definition of discrimination in economics.

Question 5

In general, cash assistance is _______ noncash assistance in the welfare and poverty alleviation programs in the United States.

Accepted Answer

Cash assistance is significantly less than noncash assistance in welfare and poverty alleviation programs in the United States. Noncash assistance includes programs like SNAP (food stamps), housing subsidies, and Medicaid, which provide tangible benefits to individuals and families in need. In contrast, cash assistance programs like TANF (Temporary Assistance for Needy Families) and general assistance programs provide limited financial support that may not adequately address the needs of recipients.

Question 6

In 2010, approximately _______ percent of people below the poverty line received some form of cash assistance.

Accepted Answer

The answer of In 2010, approximately _______ percent of people...

Question 7

According to consumer choice theory, poor people, from their own perspective, are better off with:

Accepted Answer

Consumer choice theory states that individuals will choose the option that provides the most utility or satisfaction. For poor individuals, cash assistance provides them with the ability to purchase goods and services that they need and want, giving them the most utility. Noncash assistance, such as food stamps or vouchers, may limit their ability to purchase what they desire and may not provide the same satisfaction. Therefore, poor individuals are better off with cash assistance rather than noncash assistance.

Question 8

Reform to the welfare system in the United States in 1996:

Accepted Answer

The welfare reform in 1996, known as the Personal Responsibility and Work Opportunity Reconciliation Act, gave states the power to design their own welfare programs. This allowed for more flexibility in identifying and addressing the unique needs and circumstances of individuals and families receiving welfare benefits. The reform also established a time limit on welfare eligibility, but did not increase noncash or cash benefits after any specific period of time.

Question 9

The provision of specific goods and services to poor people is:

Accepted Answer

Noncash assistance refers to the provision of specific goods and services, such as food stamps or housing vouchers, to poor people. Cash assistance, on the other hand, involves providing money directly to individuals. The income effect and wealth effect refer to changes in consumer behavior resulting from changes in income or wealth, and are not directly related to the provision of goods and services to poor people.

Question 10

In determining the official poverty rate in the United States:

Accepted Answer

In determining the official poverty rate in the United States, only cash income is counted. Noncash benefits such as SNAP (Supplemental Nutrition Assistance Program) and housing subsidies are not included in the poverty measure calculation. However, it is worth noting that some researchers argue that noncash benefits should be included in poverty measure calculations as they can have significant impact on a families' well-being.

Question 11

The Case in Point titled "Welfare Reform in Britain and the United States indicated that the program in _____ did not require recipients to obtain jobs and that the reduction in case loads was smaller in _____.

Accepted Answer

The welfare reform in Britain did not require recipients to obtain jobs, and the reduction in case loads was smaller in Britain compared to the United States.

Question 12

One explanation for why the poor tend to receive more noncash assistance than cash assistance is that:

Accepted Answer

Taxpayers and government officials may prefer to give noncash assistance as it allows them to control how the assistance is used and may be seen as less likely to be misused or wasted. Additionally, noncash assistance may include things like food stamps or housing subsidies that directly provide necessary goods and services to the poor.

Question 13

For the most part, poverty programs are funded by _______ government(s).

Accepted Answer

Poverty programs are primarily funded by the federal government, with some contributions from state and local governments as well. However, the majority of the funding comes from the federal government through programs such as Medicaid, food stamps, and housing assistance.

Question 14

When people with similar economic characteristics experience different economic outcomes because of their race, sex, or other noneconomic characteristics the result is:

Accepted Answer

Discrimination refers to the differential treatment of individuals based on their race, sex, or other noneconomic characteristics, which can result in different economic outcomes for people with similar economic characteristics. This can lead to unequal opportunities and outcomes for minority groups, and is considered a form of social injustice.

Question 15

A money payment that a recipient may spend as he or she wishes is:

Accepted Answer

Cash assistance refers to a money payment that can be spent by the recipient as per their discretion. The other options do not refer to a direct financial payment. The income effect and wealth effect are economic concepts that describe the changes in consumer behavior due to changes in income and wealth, respectively. Noncash assistance refers to programs that provide goods or services to recipients instead of monetary payments.

Question 16

In 2010, approximately _______ percent of those counted as poor received food stamps.

Accepted Answer

In 2010, according to the U.S. Census Bureau, approximately 45% of those counted as poor received food stamps.

Question 17

Reform to the welfare system in the United States in 1996 eliminated:

Accepted Answer

The welfare reform in 1996 eliminated the entitlement aspect of welfare, meaning that individuals were no longer automatically entitled to welfare benefits solely due to their financial situation. Instead, eligibility for welfare became based on work requirements, income limits, and other factors.

Question 18

The text concludes that poor people, from their own perspective, would be better off with _______ than with _______ .

Accepted Answer

The text specifically states that poor people "prefer cash grants over noncash aid" because "they allow for greater flexibility and the ability to prioritize their own needs." Therefore, choice C, which lists cash grants as the preferred option, is the best answer.

Question 19

One explanation for why the poor tend to receive more noncash assistance than cash assistance is that:

Accepted Answer

Noncash assistance often comes in the form of programs and services, such as food stamps and housing subsidies, which are typically provided by government agencies or nonprofit organizations. These providers often have more political power and influence over government policies than the poor themselves, which can lead to a disproportionate allocation of noncash assistance over the more direct provision of cash assistance. Additionally, some argue that noncash assistance may be more effective in addressing the underlying issues that contribute to poverty, such as providing education or job training, rather than simply providing immediate financial aid.

Question 20

After adjusting for noncash aid, the poverty rate in the United States is:

Accepted Answer

Noncash aid, such as food stamps and housing subsidies, can help to lower the poverty rate. Therefore, after adjusting for noncash aid, the poverty rate in the United States is generally lower.

Quiz 18: Inequality, Poverty, and Discrimination

Reform to the welfare system in the United States in 1996:

Which of the following statements is true?

Which of the following statements is true regarding welfare reform in 1996?

Economists define discrimination as occurring when:

In general, cash assistance is _______ noncash assistance in the welfare and poverty alleviation programs in the United States.

In 2010, approximately _______ percent of people below the poverty line received some form of cash assistance.

According to consumer choice theory, poor people, from their own perspective, are better off with:

Reform to the welfare system in the United States in 1996:

The provision of specific goods and services to poor people is:

In determining the official poverty rate in the United States:

The Case in Point titled "Welfare Reform in Britain and the United States indicated that the program in _ did not require recipients to obtain jobs and that the reduction in case loads was smaller in _.

One explanation for why the poor tend to receive more noncash assistance than cash assistance is that:

For the most part, poverty programs are funded by _______ government(s) .

When people with similar economic characteristics experience different economic outcomes because of their race, sex, or other noneconomic characteristics the result is:

A money payment that a recipient may spend as he or she wishes is:

In 2010, approximately _______ percent of those counted as poor received food stamps.

Reform to the welfare system in the United States in 1996 eliminated:

The text concludes that poor people, from their own perspective, would be better off with _ than with _ .

One explanation for why the poor tend to receive more noncash assistance than cash assistance is that:

After adjusting for noncash aid, the poverty rate in the United States is: