Deck 16: Social Welfare Policymaking

Question 1

Compared to other advanced industrialized democracies,the United States

A)provides meager family leave policies connected to the birth or adoption of a child or illness of a family member.
B)faces fewer challenges funding Social Security due to the level of benefits relative to the size of the population.
C)pays higher prices for more generous social welfare benefits to its citizens.
D)provides a greater range of social welfare benefits to its citizens.
E)generally supports greater governmental responsibility for poverty and social welfare problems.

Answer 1

A

Question 2

The Social Security Act was passed in the United States during

A)the Civil War.
B)World War I.
C)the New Deal.
D)the Great Society era.
E)the Spanish American War.

Answer 2

C

Question 3

Policies that provide benefits,cash or in-kind,to individuals based on either entitlement or means testing are called social welfare policies.

Answer 3

True

Question 4

The official poverty count is most likely an overestimate because there is a lag in the poverty count compared to the number of people who "work their way out of poverty."

Question 5

The sales tax is an example of a(n)________ tax.

A)earned-income
B)progressive
C)regressive
D)proportional
E)unitary

Question 6

According to Timothy Smeeding,

A)the U.S. has seen large increases in income inequality over the last four decades.
B)income inequality is greater in the U.S. than most developed countries.
C)the U.S. has the widest extremes of income compared to other developed countries.
D)All of these are true.
E)None of these is true.

Question 7

Entitlement programs are government programs that provide benefits to qualified individuals regardless of need.

Question 8

A tax by which the government takes 50 percent of a rich family's income in taxes and 5 percent of a poor family's income in taxes is a _____ tax.

A)proportional
B)flat
C)regressive
D)progressive
E)unitary

Question 9

Which of the following statements about social welfare policy is FALSE?

A)Social Security and Medicare are the two largest entitlement programs.
B)Federal entitlement programs cost $3 billion a day.
C)Entitlement programs are sometimes called "social insurance" programs.
D)The 2006 increase in entitlement spending was almost $100 billion.
E)Compared to entitlement programs,the government spends billions more on means-tested programs.

Question 10

What was the median American household income in 2009,according to the U.S.Census Bureau?

A)$39,777
B)$49,777
C)$59,777
D)$69,777
E)$79,777

Question 11

Transfer payments

A)consist of cash and in-kind benefits from the government.
B)are part of the proposed changes to make taxation more proportional.
C)have significantly redistributed income in America.
D)have the net effect of being regressive.
E)All of the above are true of transfer payments.

Question 12

_____ refers to the amount of money collected between any two points in time; ____ refers to the value of assets owned.

A)Wealth; income
B)Income; wealth
C)Entitlements; income
D)Wealth; entitlements
E)Income; entitlements

Question 13

The gap between the rich and the poor is smaller today than it was in the middle of the twentieth century.

Question 14

According to the U.S.Census Bureau,the median household income in the U.S.in 2009 was $49,777.

Question 15

Current Social Security payroll taxes are _____ percent.

A)5
B)6.2
C)12.4
D)15.2
E)25

Question 16

Social welfare policies are

A)policies that provide benefits to individuals,either through entitlements or through means testing.
B)"shares" of national income earned by various groups.
C)policies that tax a greater share of the income of the rich than of the poor.
D)policies used to count the number of poor people.
E)benefits given by the government directly to individuals.

Question 17

Which president formed the Commission to Strengthen Social Security through a system of limited privatization?

A)Franklin D. Roosevelt
B)Ronald Reagan
C)George H. W. Bush
D)Bill Clinton
E)George W. Bush

Question 18

Which law,signed by President Bill Clinton in 1996,proposed to "end welfare as we know it"?

A)Social Security Act
B)Personal Responsibility and Work Opportunity Reconciliation Act
C)Aid to Families with Dependent Children
D)Children Health Insurance Program
E)Earned Income Tax Credit

Question 19

Government benefits that certain qualified individuals are entitled to by law,regardless of need,are called

A)means-tested programs.
B)entitlements.
C)handouts.
D)redistributive policies.
E)regulatory policies.

Question 20

Which president declared "War on Poverty"?

A)Lyndon Johnson
B)Ronald Reagan
C)Bill Clinton
D)Franklin d.Roosevelt
E)George H. W. Bush

Question 21

Which best characterizes the distribution of wealth and income in the United States?

A)Wealth is more unequally distributed than income.
B)Income is more unequally distributed than wealth.
C)Wealth and income are each distributed in roughly the same pattern.
D)The distribution of wealth is becoming slightly more equal,while the distribution of income is becoming slightly more unequal.
E)The distribution of income is becoming slightly more equal,while the distribution of wealth continues to grow more unequal.

Question 22

The courts have ruled that Proposition 187,the 1994 California initiative that prohibited illegal immigrants from receiving social welfare benefits,violated the civil rights of illegal immigrants.

Question 23

The government spends more on the ________ than on the ________.

A)military; civilians
B)youth; elderly
C)men; women
D)nonpoor; poor
E)noncitizens; citizens

Question 24

The government spends far more on ____ than on _____.

A)defense; Social Security
B)Social Security; the poor
C)the poor; defense
D)the poor; the middle class
E)food stamps; defense

Question 25

Which of the following is TRUE about wealth and income in American society?

A)Wealth is distributed less equally than income.
B)Wealth and income are distributed about the same in society.
C)Income is distributed less equally than wealth.
D)Wealth and income are the same thing.
E)There has been little change in income distribution in the U.S. in recent decades.

Question 26

The ratio of workers to beneficiaries of Social Security has been declining for several decades and is projected to continue to fall in the future.

Question 27

Food stamps and Medicaid are

A)entitlements.
B)means-tested programs.
C)non-means-tested programs.
D)government guarantees.
E)rights of citizenship.

Question 28

Most industrial nations are more generous with social welfare programs than is the United States.

Question 29

Studies of America's wealth show that _______ of America's wealth is held by the wealthiest 1 percent of the population.

A)one-sixth
B)one-fifth
C)one-quarter
D)one-third
E)one-half

Question 30

An example of an entitlement program is

A)food stamps.
B)Medicare.
C)federal student loans.
D)Medicaid.
E)All of these are entitlement programs.

Question 31

Policies that provide benefits to individuals through entitlement or means testing are called

A)tax subsidies.
B)social welfare policies.
C)equal opportunity policies.
D)charity.
E)regulatory policies.

Question 32

The amount of money collected between two points of time is called

A)income.
B)wealth.
C)taxes.
D)savings.
E)asset accumulation.

Question 33

Approximately how many Americans were poor in 2009?

A)5 million
B)14 million
C)20 million
D)34 million
E)43 million

Question 34

Which of the following statements about wealth in the United States is FALSE?

A)The top 1 percent of the wealth-holders currently possess about 30 percent of all American wealth.
B)The wealth of the richest 1 percent exceeds the wealth of the bottom 90 percent.
C)There are now over two million millionaires in the world,most in the United States.
D)Between 1979 and 1995,the poorest one-fifth of the population saw their real incomes increase,while the richest one-fifth of the population saw their real incomes decrease.
E)Since the 1980s,the rich have gotten richer and the poor have gotten poorer.

Question 35

A situation in which people believe they are not doing well economically in comparison to others is called

A)absolute deprivation.
B)relative deprivation.
C)income inequality.
D)the feminization of poverty.
E)poverty perceptions.

Question 36

________ is the value of assets owned,including stocks,bonds,bank accounts,cars,houses,and so forth.

A)Income
B)Wealth
C)Taxable income
D)Net earnings
E)Net profit

Question 37

Due in part to the fact that policymaking in the U.S.is incremental in nature,it is difficult to change social welfare policies.

Question 38

Government programs available only to individuals who qualify for them based on specific needs are called

A)redistributive policies.
B)personal policies.
C)regulatory policies.
D)means-tested programs.
E)entitlement programs.

Question 39

Regressive taxes impose a heavier burden on low-income groups than on the wealthy.

Question 40

Government benefits provided regardless of financial need are called

A)means tested.
B)transfer payments.
C)entitlements.
D)nonmerit benefits.
E)generic expenditures.

Question 41

The tax that can be used to redistribute income from the rich to the poor is a

A)sales tax.
B)progressive tax.
C)regressive tax.
D)proportional tax.
E)relative-deprivation tax.

Question 42

A ________ tax takes a higher percentage from those with lower incomes and less from the wealthy.

A)progressive
B)proportional
C)regressive
D)relative-deprivation
E)flat

Question 43

A ________ tax requires the same share from everyone,rich and poor alike.

A)progressive
B)proportional
C)regressive
D)relative-deprivation
E)flat

Question 44

The ________,passed by Congress in 1935,dramatically brought the government into the equation of one generation's obligations to another.

A)Aid to Families with Dependent Children Act
B)Medicaid bill
C)Social Security Act
D)National Direct Student Loan Act
E)Medicare bill

Question 45

Which of the following statements is TRUE?

A)The rich send a bigger proportion of their income to Washington in the form of federal taxes than do the poor.
B)The poor send a bigger proportion of their income to Washington in the form of federal taxes than do the rich.
C)The rich and the poor send the same proportion of their income to Washington in the form of federal taxes.
D)The rich and the poor send the same absolute dollar amount to Washington in the form of a flat tax.
E)Neither the rich nor the poor send income taxes to Washington.

Question 46

The federal income tax is an example of a ________ tax.

A)progressive
B)proportional
C)regressive
D)relative-deprivation
E)flat

Question 47

Poverty among the elderly declined over the past several decades primarily due to

A)Social Security benefits.
B)the booming economy in the 1980s.
C)changing attitudes in society regarding the elderly.
D)the larger proportion of savings held by the elderly.
E)All of the above are true.

Question 48

The share of national income earned by various groups in the United States is described by the concept of

A)the apple pie.
B)income distribution.
C)income relativity.
D)socioeconomic stratification.
E)wealth allocation.

Question 49

Which of the following statements is TRUE?

A)Over one-half of Americans between the ages of 25 and 75 will spend at least one year in poverty during their lifetime.
B)African Americans and Hispanic Americans have more than a 20 percent chance of living in poverty.
C)White Americans have less than a 10 percent chance of being in poverty.
D)Female-headed households have an almost 30 percent chance of being in poverty.
E)All of these are true.

Question 50

If the government takes a bigger bite from the income of a rich family than from the income of a poor family,then the tax system is

A)progressive.
B)proportional.
C)regressive.
D)redistributive.
E)retrogressive.

Question 51

If a poor family pays 50 percent of its income in taxes and a rich one 5 percent,then the tax system is

A)progressive.
B)proportional.
C)regressive.
D)redistributive.
E)retrogressive.

Question 52

A transfer payment is one that

A)requires some form of work in exchange for government assistance.
B)provides money from the government's general treasury to those in specific need.
C)is paid in lieu of cash.
D)is not based on need.
E)provides tax credits from the government's general treasury to individuals.

Question 53

Which of the following statements about the distribution of wealth in America is TRUE?

A)Many of the poor are slowly gaining ground,relatively speaking,to higher-income groups.
B)All groups are increasing their wealth,with the poor increasing at a slightly lower rate.
C)Many of the poor are losing ground to the higher-income groups in absolute terms.
D)All groups are increasing their wealth,with the poor increasing at a slightly higher rate.
E)The middle class (the middle quintile of the population)is increasing its share of the national income,while the top and bottom quintiles are losing their share of national income.

Question 54

Official poverty counts tend to underestimate poverty because

A)some families refuse to report their income level.
B)some families go in and out of poverty without being counted.
C)they do not include individuals' wealth.
D)the Republicans want it that way.
E)the Democrats want it that way.

Question 55

A tax in which the tax rate increases with increases in income is a(n)

A)progressive tax.
B)regressive tax.
C)proportional tax.
D)example of relative deprivation.
E)earned-income tax credit.

Question 56

A ________ tax takes a higher percentage from the incomes of the rich than the poor.

A)progressive
B)proportional
C)regressive
D)relative-deprivation
E)flat

Question 57

Which program is a special tax benefit for working people who earn low incomes?

A)The Children's Health Insurance Program
B)The Earned Income Tax Credit
C)Medicaid
D)Unemployment Insurance
E)Social Security

Question 58

The "War on Poverty" was the set of social welfare policy initiatives begun by President

A)Lyndon Johnson.
B)Jimmy Carter.
C)Franklin D. Roosevelt.
D)Ronald Reagan.
E)Harry S. Truman.

Question 59

If one person earns twice as much as another,but each pays 15 percent of his or her income in taxes,then the tax system is

A)progressive.
B)proportional.
C)regressive.
D)redistributive.
E)egalitarian.

Question 60

Which of the following statements is FALSE?

A)Unmarried women and their children outnumber the elderly among the ranks of the poor.
B)The elderly outnumber unmarried women and their children among the ranks of the poor.
C)The constant expansion of Social Security and its benefits has significantly reduced poverty among the elderly.
D)Poverty rates are higher for African Americans than for whites.
E)Poverty rates are higher for Hispanics than for whites.

Question 61

A major study by Charles Murray argued that

A)although the Great Society did not eliminate poverty,it did reduce the number of poor.
B)not only did the social programs of the Great Society fail to curb the advance of poverty,they actually made the situation worse.
C)macroeconomic cycles were responsible for much of the movement into and out of poverty during the post-1965 period.
D)although the Great Society was able to reduce poverty in America,it had no effect on racial discrimination.
E)there is a "new poverty" in America that is largely the result of deindustrialization,foreign competition,the exploitation of part-time workers,and stagnation of the minimum wage.

Question 62

Which of the following is funded through payroll taxes on employers and employees?

A)Social Security
B)Family and Medical Leave Act
C)Children's Health Insurance Program (CHIPs)
D)Supplementary Security Income (SSI)
E)All of these are funded through payroll taxes.

Question 63

The "War on Poverty" programs were later attacked and had their funding reduced substantially by President

A)Dwight Eisenhower.
B)Lyndon Johnson.
C)Ronald Reagan.
D)Richard Nixon.
E)George H. W. Bush.

Question 64

The most important ratio for Social Security is that of

A)beneficiaries to tax rates.
B)workers to beneficiaries.
C)tax rates to workers.
D)contributions to the number of contributors.
E)contributions to workers.

Question 65

If you work,you contribute ____ percent of your wages up to $102,000 to Social Security and your employer matches it.

A)3
B)6.2
C)10
D)15
E)20

Question 66

The average TANF recipient collects about _____ in monthly TANF benefits.

A)$50
B)$360
C)$600
D)$1,000
E)$1,500

Question 67

What explains why politicians are reluctant to attempt to significantly reform Social Security?

A)Politicians are self-interested and want to protect their own retirement.
B)Older Americans vote at higher rates than do younger Americans; politicians fear a backlash from older Americans.
C)Politicians seek to avoid blame for the failures of Social Security.
D)Social Security has been so successful; few see a need for meaningful reform.
E)Both a and c are true.

Question 68

Which of the following is TRUE of the ways in which competing groups are organized in the social welfare policy arena?

A)The elderly are relatively well organized and often have the resources to wield significant influence in support of programs they favor.
B)The elderly are relatively unorganized and have few resources to wield significant influence in support of programs they favor.
C)Compared to other groups,the poor are relatively well organized and are often successful demanding generous benefits from the government.
D)There are few differences in political organization between the elderly and the poor; both groups,on average,are equally as successful in wielding political influence in social policymaking domains.
E)On rare occasions in which the government expands social benefits,they are often quickly and easily taken away.

Question 69

Which of the following statements about social spending and social policies in the U.S.and in Europe is TRUE?

A)Americans tend to see the problems of poverty and social welfare needs as individual problems; most European nations see these as government's responsibility.
B)Americans tend to see the problems of poverty and social welfare needs as government's responsibility; most European nations see these as individual problems.
C)Americans are more likely to trust government; Europeans are less likely to trust government.
D)Most Americans believe that even with hard work,poor Americans are unable to escape poverty on their own.
E)Tax rates in the U.S. exceed tax rates in most European democracies.

Question 70

Currently,there are approximately ___ workers per Social Security recipient.

A)3.4
B)5
C)7
D)9
E)10

Question 71

All income groups are increasing their wealth,with the poor increasing at a slightly lower rate.

Question 72

Republicans,including President George W.Bush,proposed solving the Social Security problem by

A)diversifying a portion of Social Security contributions to private retirement funds.
B)cutting benefits.
C)raising taxes.
D)abolishing the program.
E)diverting a portion of Social Security funds to offset Medicare and Medicaid costs.

Question 73

All social welfare policies are means tested.

Question 74

One's total income includes the amount already owned,such as stocks,bonds,houses,cars,bank accounts,and so forth.

Question 75

One-third of American wealth is held by the wealthiest 1 percent of the population.

Question 76

The U.S.poverty line,that is,the income threshold below which people are considered poor,is based on a formula that multiplies the cost of the U.S.Department of Agriculture's subsistence diet by three.

Question 77

Social Security and Medicare are the largest and most expensive social welfare programs in the United States.

Question 78

Unemployment insurance is

A)an entitlement program.
B)funded through taxes on employers.
C)designed for workers who have been laid off and cannot work.
D)variable from state to state.
E)All of the above are true.

Question 79

How is Medicaid funded?

A)Through payroll taxes on employees and employers
B)By premiums paid by beneficiaries
C)Through taxes on employers
D)Through federal grants to state health programs
E)Through general federal revenue

Question 80

The name of the program that replaced Aid to Families with Dependent Children as the program for public assistance to needy families is called

A)Social Security.
B)Medicaid.
C)Temporary Assistance for Needy Families.
D)Medicare.
E)Supplemental Security Income.