Question 1

Which of the following demographic groups does not bear a disproportionate burden of poverty?

Accepted Answer

Persons 65 or over do not bear a disproportionate burden of poverty compared to other demographic groups. In fact, they have lower poverty rates than other age groups, partly due to Social Security benefits and other retirement income. The other choices - households headed by women, Hispanics, and children under 18 - all have higher poverty rates compared to the overall population.

Question 2

Which of the following measurement issues makes interpretation of U.S.poverty rates difficult?

Accepted Answer

Poverty statistics in the U.S. only measure income and do not take into account consumption patterns or other assets that can affect a household's standard of living. This can lead to some families living above the poverty line but still experiencing economic hardships.

Question 3

The poverty rate in the United States was

Accepted Answer

The answer of The poverty rate in the United States...

Question 4

Since 1980 the difference between the earnings of college graduates and high school graduates has

Accepted Answer

The difference between the earnings of college graduates and high school graduates has increased since 1980, which has contributed to the overall increase in income inequality. This is due to the higher demand and value placed on skills and education in the modern economy.

Question 5

Which of the following groups would we expect to have the highest poverty rate?

Accepted Answer

African-American households headed by females consistently have the highest poverty rates compared to other racial and gender groups in the United States.

Question 6

According to the standard government definitions, the percentage of the U.S.population now (2014) considered to be living in poverty is about

Accepted Answer

According to the U.S. Census Bureau, the official poverty rate for 2014 was 14.8 percent, which means approximately 46.7 million people lived in poverty.

Question 7

Since 1975 the distribution of income has

Accepted Answer

The use of "less equal" indicates that the distribution of income has become more unequal over time.

Question 8

Which of the following groups has the highest poverty rate?

Accepted Answer

Female-headed households have the highest poverty rate among all groups. According to the U.S. Census Bureau, the poverty rate for female-headed households with no spouse present was 24.9% in 2019, which is much higher than the overall poverty rate of 10.5%. Age 65 or over, foreign-born (not citizens), and Hispanics also have higher poverty rates than the overall population, but not as high as female-headed households.

Question 9

Gomez argues that we need to increase the nation's output.Chang contends that our top priority should be a more equal distribution of income and output.It can be correctly stated that these two goals are

Accepted Answer

The goals of increasing national output and achieving a more equal distribution of income are at least partially competing because redistributing income may reduce incentives to work and produce. While a more equal income distribution can lead to greater economic growth in some cases, it is not always guaranteed. Therefore, the goals are not complementary in every situation.

Question 10

In 2014, the official poverty line for a household of four in the United States was

Accepted Answer

According to the U.S. Department of Health and Human Services, the official poverty guideline for a household of four in 2014 was an annual income of $24,230.

Question 11

The term "growing income inequality" implies that the

Accepted Answer

Growing income inequality means that the distribution of income is becoming more uneven, with the upper quintiles of income receivers getting a greater share of the total income than before while the lower quintiles receive a smaller share. This is represented by a Lorenz curve that is shifting away from the diagonal, as depicted by choice D. Choice A only represents one possible outcome of growing income inequality and is not necessarily true in every case. Choices B and C are not accurate representations of what growing income inequality means.

Question 12

The U.S.poverty rate for

Accepted Answer

According to the U.S. Census Bureau, in 2019, the poverty rate for children under 18 years of age was 14.4%, which is higher than the overall poverty rate of 10.5%. This means that children are more likely to be living in poverty than the general population. The other options are not true.

Question 13

The equality-efficiency trade-off suggests that

Accepted Answer

The equality-efficiency trade-off suggests that there is a trade-off between achieving equality (such as reducing poverty and redistributing wealth) and maximizing efficiency in the economy. When policies are implemented to increase equality, such as welfare programs or progressive taxation, they can reduce incentives to produce and work, leading to inefficiencies in the economy. Therefore, the best choice is B, which reflects this trade-off. The other choices (A, C, and D) do not accurately reflect this trade-off.

Question 14

The poverty rate for African Americans is

Accepted Answer

According to the U.S. Census Bureau, the poverty rate for African Americans is higher than for any other racial or ethnic group as of 2019 data.

Question 15

The basic economic argument for greater income equality is that

Accepted Answer

The answer of The basic economic argument for greater income...

Question 16

The equality-efficiency trade-off refers to

Accepted Answer

The equality-efficiency trade-off refers to the potential clash between the goals of economic efficiency and greater income equality. Pursuing greater equality may involve redistributing resources from the more efficient to the less efficient and may ultimately lead to a less efficient allocation of resources. Conversely, a focus on economic efficiency may lead to greater inequality, as those who are more productive or innovative are more highly rewarded. Therefore, there is a trade-off between these two goals.

Question 17

The basic argument for income inequality is that

Accepted Answer

The basic argument for income inequality is that it is essential to maintain incentives to produce. This argument states that individuals will work harder and try to increase their income if they know there is a possibility of achieving a higher income level. This argument is often used to support policies that favor the wealthy, such as tax cuts and deregulation, which are thought to provide greater incentives for wealth creation.

Question 18

Which of the following groups has the lowest poverty rate?

Accepted Answer

The answer of Which of the following groups has the...

Question 19

The entrance of large numbers of "baby boomers" into the labor force in the 1970s and 1980s

Accepted Answer

The entrance of baby boomers into the labor force caused an increase in income inequality. This is because as more individuals entered the labor force, the supply of labor increased, and wages were driven down for low-skilled jobs. However, high-skilled jobs remained in high demand and had wages that continued to increase, leading to a larger income gap between those with high and low skills.

Question 20

Which of the following helps explain growing income inequality in the United States in recent years?

Accepted Answer

Increased demand for highly skilled workers has led to a growing income disparity between those with advanced education and those without, as the former are able to command higher wages in a competitive labor market. This has contributed to growing income inequality in recent years.

Quiz 23: Income Inequality, Poverty, and Discrimination