Deck 9: Policy Application: the War on Poverty

Question 1

In 2007,the incidence of poverty was ______ among nonwhites than among Whites.The majority of people in poverty were ______ 18 years old.

A) higher;over
B) higher;under
C) lower;over
D) lower;under
E) the same;under

Answer 1

B

Question 2

The poverty rate in the United States was ______ (or approximately ______ million people lived in poverty)in 2007.

A) 12.5 percent;37.5
B) 22 percent;20
C) 12.5 percent;20
D) 22 percent;37.5
E) 25 percent;40

Answer 2

A

Question 3

Until 1967 the benefit reduction rate of the AFDC program was set to ______,which ______.

A) unity;provided terrible work incentives
B) unity;doubled workers' wages for each additional hour worker
C) 33 percent;provided terrible work incentives
D) 33 percent;gave workers the incentive to increase their work hours in order to gain greater utility
E) 50 percent;provided adequate assistance for needy families

Answer 3

A

Question 4

The war on poverty officially commenced in ______ but the first major battle was the passage of the ______.

A) 1984;Food Stamp Act of 1964
B) 1984;Social Security Act of 1935
C) 1964;Food Stamp Act of 1964
D) 1964;Equal Pay Act of 1963
E) 1964;Social Security Act of 1935

Question 5

In an economic sense,individuals are defined as poor:

A) according to a relative standard.
B) according to an absolute standard.
C) if their incomes fall below the poverty line.
D) if they receive public assistance.
E) if they spend more than 1/3 of their income on food.

Question 6

The poverty line in the United States is NOT:

A) anchored to the Consumer Price Index.
B) determined according to a relative standard.
C) based on a formula proposed in 1963.
D) based on dietary plans developed by the Department of Agriculture.
E) designed so that those designated as in poverty spend 1/3 of their income on food.

Question 7

In the United States,the poverty rate is determined:

A) on the basis of a relative standard.
B) on the basis of an absolute standard.
C) by the Social Security Administration.
D) by Congress.
E) by the Department of Agriculture.

Question 8

Empirical evidence shows that the passage of ______ drastically reduced expenditure on and enrollees in social welfare programs.

A) PRWOA
B) AFDC
C) TANF
D) The Food Stamp Program
E) Medicaid

Question 9

Stevens (1999)finds that ______ of Whites who enter poverty this year will see their incomes fall below the poverty line in 5 out of the next 10 years of their lives.

A) 1 percent
B) 10 percent
C) 30 percent
D) 50 percent
E) 99 percent

Question 10

The neoclassical consumption-leisure model predicts that the AFDC and TANF programs:

A) unambiguously decrease work incentives.
B) unambiguously increase work incentives.
C) may increase or decrease work incentives.
D) increase work incentives for women without children but have no effect for women with dependent children.
E) increase work incentives for men but not for women.

Question 11

If the benefit reduction rate is 25 percent,the net gain from an additional dollar of income is:

A) $1.25.
B) $1.00.
C) $0.75.
D) $0.50.
E) $0.25.

Question 12

In the last 15 years,______ has become the primary weapon in the war on poverty.

A) AFDC
B) TANF
C) SNAP
D) the Food Stamp program
E) EITC

Question 13

Welfare reform in the ______ beefed up restrictions on welfare eligibility requirements.In the years following welfare reform,the labor force rate of single women with children ______ and the number of welfare recipients ______.

A) 1970s;increased;rose
B) 1970s;increased;fell
C) 1980s;increased;fell
D) 1980s;decreased;fell
E) 1990s;decreased;fell

Question 14

The poverty rate in the United States was in ______ 2007,______ since 2003.

A) 12.5 percent;an increase
B) 22 percent;an increase
C) 12.5 percent;a decrease
D) 22 percent;a decrease
E) 25 percent;an increase

Question 15

The poverty rate hovered around ______ in the ______ and began to rise during the ______.

A) 12 percent;1950s;1970s
B) 10 percent;1960s;1980s
C) 12 percent;1970s;1980s
D) 15 percent;1960s;1970s
E) 10 percent;1950s;1990s

Question 16

The poverty rate in the United States has eductuated over time.But rapid declines occurring in ______ and ______ are particularly striking.

A) 1959-1969;2005-2009
B) 1963-1973;2005-2009
C) 1959-1969;1996-2005
D) 1963-1973;1996-2005
E) 1963-1973;2008-2011

Question 17

The EITC ______ labor force participation and ______ work incentives for current labor market participants.

A) encourages;may increase
B) encourages;may decrease
C) may encourage;increases
D) may discourage;decreases
E) may discourage;increases

Question 18

The canonical welfare programs are ______ and the usual recipients are ______.

A) AFDC and TANF;children under 18
B) AFDC and TANF;mothers of dependent children
C) AFDC and Food Stamps;the unemployed
D) Medicare and Medicaid;children under 18
E) Medicare and Medicaid;mothers of dependent children

Question 19

The ______ program represents the largest slice of expenditures in the war on poverty by far.

A) AFDC
B) Food Stamp
C) Medicaid
D) Medicare
E) EITC

Question 20

The ______ provides low income workers with a tax credit.The program was greatly expanded with the Tax Reform Act of 1986,which ______.

A) AFDC/TANF;extended coverage to children under 18
B) TANF;extended coverage to working parents with dependent children
C) AFDC;extended coverage to working parents with dependent children
D) EITC;extended coverage to children under 18
E) EITC;extended coverage to working parents with dependent children