Question 1

If the poverty threshold for a household of four is $20,000 and the Rockefeller family of four has an income of $24,000, then the Rockefellers are classified as

Accepted Answer

The Rockefeller family's income is above the poverty threshold but not by a significant margin, which typically classifies them as "near poor." This means they earn more than the poverty line but still might struggle to meet all basic needs comfortably.

Question 2

In 2017, around _____ million people in the United States were categorized as poor.

Accepted Answer

In 2017, approximately 40 million people in the United States were categorized as living in poverty, according to data from the U.S. Census Bureau.

Question 3

In 2017, around _____ million people were categorized as near poor.

Accepted Answer

In 2017, around 14 million people were categorized as near poor.

Question 4

The Census Bureau has developed new ways of measuring poverty. Which strategy is NOT a recent change in their methodology?

Accepted Answer

The Census Bureau has not recently changed its methodology to include adjustments for investment in human capital in measuring poverty. The other options (A, B, D) are indeed recent changes or considerations in their methodology.

Question 5

Alternative measures of income thresholds, as developed by the Census Bureau, show

Accepted Answer

Alternative measures of income thresholds, such as those considering after-tax income and noncash benefits, often show lower poverty rates compared to the official estimates, as they account for additional resources not included in the official poverty measure.

Question 6

The Census Bureau has developed alternative measures of poverty that use after-tax income plus capital gains and adds noncash benefits, such as food stamps, to income. Under these alternative measures, poverty rates

Accepted Answer

The alternative measures of poverty developed by the Census Bureau, which include after-tax income, capital gains, and noncash benefits like food stamps, result in a reduction of the poverty rates by roughly a quarter. This approach provides a more comprehensive view of an individual's or family's resources.

Question 7

By including food stamps and housing subsidies and adjusting for household composition, the Census Bureau has

Accepted Answer

By including food stamps and housing subsidies and adjusting for household composition, the Census Bureau has effectively accounted for non-cash benefits that improve the living standards of low-income individuals and families. This approach provides a more accurate measure of resources available to them, leading to a reduction in the estimated poverty rate.

Question 8

The U.S. measure of poverty is _____, while many European countries' measures are _____.

Accepted Answer

The U.S. measure of poverty is considered absolute, meaning it is based on a fixed income threshold. In contrast, many European countries use a relative measure, which defines poverty in relation to the overall income distribution of the country.

Question 9

The official U.S. poverty threshold is roughly

Accepted Answer

The official U.S. poverty threshold for a single individual in 2021 was approximately $12,880 annually, which translates to about $35 per day. However, since the options provided do not include this exact figure, the closest option is $34 per day.

Question 10

The official World Bank poverty threshold is roughly

Accepted Answer

The World Bank defines extreme poverty as living on less than $1.90 a day, which is approximately $2 per day, adjusted for purchasing power parity.

Question 11

According to World Bank standards

Accepted Answer

The answer of According to World Bank standards
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Question 12

According to World Bank standards, poverty in the United States

Accepted Answer

The answer of According to World Bank standards, poverty in...

Question 13

An individual in the United States with an income of $20 per day is

Accepted Answer

An individual in the United States with an income of $20 per day falls below the U.S. poverty threshold, which varies by household size but is generally higher than $20 per day. The U.S. Census Bureau sets specific poverty thresholds that are used to determine the poverty status of individuals and families, and $20 per day ($7,300 annually) is below these thresholds for most household sizes.

Question 14

Some economists feel that

Accepted Answer

The answer of Some economists feel that
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Question 15

Incomes may be skewed in favor of some groups rather than others because

Accepted Answer

Some individuals choose to invest more in their education, skills, and personal development, which can lead to higher productivity and, consequently, higher income. This investment in human capital is a key reason for income disparities among different groups.

Question 16

John Rawls proposed that

Accepted Answer

John Rawls, in his theory of justice, argued that social and economic inequalities should be arranged so that they are to the greatest benefit of the least advantaged members of society. This principle is known as the difference principle, which aligns with choice B.

Question 17

Robert Nozick agreed with all of these claims EXCEPT

Accepted Answer

Robert Nozick, a libertarian philosopher, did not believe it was society's duty to minimize income inequality. Instead, he emphasized the protection of individual property rights and opposed redistributive policies by the state that aimed to make some better off at the expense of others.

Question 18

Robert Nozick's views

Accepted Answer

Robert Nozick's views are more closely aligned with libertarian principles, which are typically associated with the political right. He argued against significant state intervention in matters of income redistribution, emphasizing individual rights and the minimal state.

Question 19

A critic of John Rawls would say that

Accepted Answer

Critics of John Rawls often argue from a perspective that emphasizes the importance of property rights, suggesting that Rawls' focus on redistributive justice to benefit the least well-off (as outlined in his principles of justice) undermines the equitable and just protection of property rights.

Question 20

The idea that society should maximize the welfare of the least well-off individual is called

Accepted Answer

The maximin principle, associated with philosopher John Rawls, suggests that society should be arranged so as to maximize the welfare of the least well-off members. This principle is part of Rawls's theory of justice.

Quiz 15: Poverty and Income Distribution