Question 1

Figure 16.2
 
-According to figure 16.2 in each panel the solid line (baT)represents___________.
A) Alternative work opportunities
B) Workfare job opportunities
C) Indifference curves
D) Fixed monetary cost required for the workfare job

Accepted Answer

A

Question 2

Programs that provide opportunities for poor households to earn income by performing low-skill labor in public works projects are called____________.
A) Welfare program
B) Earned income tax credit program
C) Workfare programs
D) Unconditional targeting transfer programs

Accepted Answer

Workfare programs are specifically designed to provide income to poor households by engaging them in low-skill labor in public works projects. Welfare programs provide monetary assistance to poor households without requiring any effort on their part. Earned income tax credit program provides tax credits to low-income households. Unconditional targeting transfer programs provide monetary assistance to poor households with no conditions or requirements for receiving the support.

Question 3

Figure 16.2
 
-According to empirical data on targeting outcomes,the results have been anything but perfect,they reveal that:
A) 80% of funds are going to non-poor
B) 60-70% of participants are from poor households
C) 20% of the participants were from poor households
D) The work requirement played no role in preventing participation by the poor.

Accepted Answer

According to the given information, the empirical data on targeting outcomes reveal that 60-70% of participants are from poor households. This means that the program is successfully reaching its intended target group to a significant extent. Options A and C are incorrect as they indicate a high proportion of non-poor participants or a very low proportion of poor participants, which does not align with the given information. Option D is not supported or refuted by the given information, so it cannot be considered as the best choice.

Question 4

Participation in a workforce program can alter participants' behavior in all of the following ways except:
A) Relax liquidity constraints
B) Alter the way a woman's interests enter into household decision making
C) Increase income
D) Tighten liquidity constraints

Accepted Answer

The other three choices are all potential outcomes of participating in a workforce program. Relaxing liquidity constraints and increasing income are direct benefits, while altering household decision making can occur if a woman's newfound economic power changes her role within the household. However, participating in a workforce program should not tighten liquidity constraints; in fact, the goal is often to help individuals access more resources and opportunities.

Question 5

Figure 16.1
 $$\text { Mary }$$ Mary
 $$\text { Jane }$$ Jane
 
-According to figure 16.1 how much can each woman consume if they don't participate in the workfare program?
A) Each woman can consume M
B) Mary can consume at point A; Jane can consume at point B
C) Mary can consume at point A; Jane can consume at point A
D) There is not enough information to tell

Accepted Answer

According to the graph, if both women do not participate in the workfare program, they can consume at point A, which is located on the horizontal axis where the budget constraint intersects with the highest possible indifference curve. Therefore, Mary and Jane can consume at point A, with each consuming M amount. So, the correct answer is C: Mary can consume at point A; Jane can consume at point A.

Question 6

Workfare program participation raises a participants' well-being more,all else equal,the _________ the program wage exceeds the wage in the participant's alternative activity and the __________are the worker's fixed costs of participation.:
A) Smaller amount; smaller
B) More; larger
C) More; smaller
D) Smaller amount; larger

Accepted Answer

A higher workfare program wage will increase a participant's well-being more, as they will earn a higher income than their alternative activity. Additionally, smaller fixed costs of participation, such as transportation or childcare expenses, will also contribute to a higher level of well-being for the worker.

Question 7

Figure 16.1
 $$\text { Mary }$$ Mary
 $$\text { Jane }$$ Jane
 
-According to figure 16.1 which person will choose to participate in a workfare programs?
A) Jane
B) Mary
C) Neither
D) Both

Accepted Answer

Based on the graph, Jane's budget constraint line with workfare (dashed line) is parallel to her budget constraint line without workfare (solid line), indicating that her opportunity cost of leisure is the same with or without workfare. Therefore, Jane will choose to participate in workfare programs as it increases her income without affecting her leisure time. On the other hand, Mary's budget constraint line with workfare is steeper than her budget constraint line without workfare, indicating that workfare increases her opportunity cost of leisure. As a result, Mary will choose not to participate in workfare programs.

Question 8

Self targeting allows the government to _____________.
A) Target only those who are deserving of help
B) Discourage leakage to the non-poor at a high cost
C) Encourage leakages to the non-poor at a low cost
D) Add to asset creation speeding economic growth and long-run poverty reduction

Accepted Answer

The answer of Self targeting allows the government to _____________.
A)...

Question 9

Many workfare programs share one thing in common:
A) That they are capital intensive meaning they use a relatively small amount of labor relative to capital
B) That they are capital intensive meaning they use a relatively large amount of labor relative to capital
C) That they are labor intensive meaning they use a relatively small amount of capital relative to labor
D) That they are capital intensive meaning they use a relatively large amount of capital relative to labor

Accepted Answer

Many workfare programs require a large amount of labor in order to complete tasks such as cleaning up public spaces, caring for the elderly or disabled, or providing other community services. These programs often do not require a large amount of capital investment in equipment or infrastructure. Therefore, they are labor intensive and use a relatively small amount of capital relative to labor.

Question 10

In order for a workfare program to be self targeting,it must offer a ______ wage than the alternative wage available to poor households and a ________wage than the alternative wage available to wealthier households?
A) Higher; lower
B) Higher; higher
C) Lower; lower
D) Lower; higher

Accepted Answer

A self-targeting workfare program should offer a higher wage than the alternative wage available to poor households in order to incentivize them to participate and improve their income, while offering a lower wage than the alternative wage available to wealthier households to ensure they do not take advantage of the program and displace the intended beneficiaries.

Question 11

In order for a workfare program to be self targeting,it must offer a wage ______ than what's available to poor households currently and ________ that what is available to a wealthier household?
A) Higher; lower
B) Higher; higher
C) Lower; lower
D) Lower; higher

Accepted Answer

A workfare program will only be self targeting if it offers a higher wage than what is available to poor households currently, otherwise they will not have an incentive to participate in the program. If the wage offered is lower than what is available to wealthier households, then the program will not be self targeting, as it will attract those who are not poor and therefore not the target population of the program.

Question 12

All of the following are potential fixed costs a poor household may incur from participating in a workfare program,except:
A) Hourly babysitting fee
B) Travel cost
C) Any cost that does not rise as the hours worked in the program rises
D) Tools

Accepted Answer

Hourly babysitting fees are variable costs, not fixed costs, because they increase with the number of hours worked. Fixed costs remain constant regardless of the hours worked.

Question 13

Figure 16.2
 
-According to figure 16.2 in each panel the potential participants face a fixed participation cost.Who would participate in this workfare program?
A) Jane
B) Mary
C) Both
D) Neither

Accepted Answer

The answer of Figure 16.2
 
-According to figure 16.2 in...

Question 14

All of the following are the primary objectives of most workfare programs except:
A) Immediate reduction of poverty for participants
B) Reduction in the vulnerability for households that might fall into the need in the future
C) Increased economic growth
D) To give poor people skills to find their own job

Accepted Answer

The answer of All of the following are the primary...

Question 15

Figure 16.2
 
-According to figure 16.2 in each panel the dashed line represents___________.
A) Alternative work opportunities
B) Workfare job opportunities
C) Indifference curves
D) Fixed monetary cost required for the workfare job

Accepted Answer

The answer of Figure 16.2
 
-According to figure 16.2 in...

Question 16

Figure 16.2
 
-According to figure 16.2 in each panel the potential participant faces a fixed participation cost.Mary faces a fixed monetary cost such as _________ and Jane faces a fixed time cost such as _____________.
A) The cost of buying a bus ticket; the time it takes to walk to work
B) The cost of tools; time spent at workfare job
C) Time on the bus to work; Tools needed for the job
D) Explicit monetary payment for getting the higher paying job; leisure time given up in exchange for work hours

Accepted Answer

In the panel where Mary faces a fixed participation cost, the cost is represented by a fixed monetary cost, indicated by the dollar sign. This could be interpreted as the cost of buying a bus ticket to get to work. In contrast, in the panel where Jane faces a fixed participation cost, the cost is represented by a fixed time cost, indicated by the clock symbol. This could be interpreted as the time it takes to walk to work, as opposed to Mary who can pay for transportation. Choice B, C, and D are not supported by the information given in the figure.

Question 17

Figure 16.1
 $$\text { Mary }$$ Mary
 $$\text { Jane }$$ Jane
 
-According to figure 16.1 which person faces a higher wage in her alternative activities?
A) Jane
B) Mary
C) Neither the wages are the same
D) There is not enough information to tell who earns a higher wage for alternative activities

Accepted Answer

The answer of Figure 16.1
 $$\text { Mary }$$ Mary
...

Question 18

All of the following are reasons why a household would choose to participate in a workfare program except:
A) If they already have a job as a high skilled worker at a less than competitive wage
B) If they are aware of the program
C) If they believe the benefits outweigh the costs
D) If they are deemed eligible

Accepted Answer

If an individual already has a job as a high skilled worker at a less than competitive wage, they would not have a need to participate in a workfare program as they are already employed.

Question 19

Why might self targeting in a workfare program fair to prevent benefits from leaking to non-poor households?
A) If wages are set too low
B) If some members of a non-poor household have little opportunity to earn income in alternative activities
C) If some members of a non-poor household have many opportunities to earn income in alternative activities
D) If the means tests fail to weed out the non-poor households

Accepted Answer

If some members of a non-poor household have little opportunity to earn income in alternative activities, they may turn to participating in the workfare program even if they do not meet the poverty criteria. By targeting self-selection, these individuals will not participate, reducing the risk of benefits leaking to non-poor households. Option A refers to low wages which may discourage participation, but it does not necessarily prevent benefits from leaking to non-poor households. Option C is the opposite scenario, where many alternative income opportunities may also discourage participation but does not prevent benefits from leaking. Option D refers to means tests failing to weed out non-poor households which is a failure in the targeting system, rather than the self-targeting aspect of the program.

Question 20

Figure 16.1 $$\text { Mary }$$ Mary $$\text { Jane }$$ Jane -According to figure 16.1 which of the following is true? A) wa2 < wp > wa1. B) wa2 < wp < wa1. C) wa2>wp> wa1. D) There is not enough information to tell

Accepted Answer

The answer of Figure 16.1
 $$\text { Mary }$$ Mary
...

Quiz 16: Workfare

Figure 16.2 -According to figure 16.2 in each panel the solid line (baT) represents___________.

Programs that provide opportunities for poor households to earn income by performing low-skill labor in public works projects are called____________.

Figure 16.2 -According to empirical data on targeting outcomes,the results have been anything but perfect,they reveal that:

Participation in a workforce program can alter participants' behavior in all of the following ways except:

Workfare program participation raises a participants' well-being more,all else equal,the _ the program wage exceeds the wage in the participant's alternative activity and the __are the worker's fixed costs of participation.:

Self targeting allows the government to _____________.

Many workfare programs share one thing in common:

In order for a workfare program to be self targeting,it must offer a wage than the alternative wage available to poor households and a __wage than the alternative wage available to wealthier households?

In order for a workfare program to be self targeting,it must offer a wage than what's available to poor households currently and __ that what is available to a wealthier household?

All of the following are potential fixed costs a poor household may incur from participating in a workfare program,except:

Figure 16.2 -According to figure 16.2 in each panel the potential participants face a fixed participation cost.Who would participate in this workfare program?

All of the following are the primary objectives of most workfare programs except:

Figure 16.2 -According to figure 16.2 in each panel the dashed line represents___________.

Figure 16.2 -According to figure 16.2 in each panel the potential participant faces a fixed participation cost.Mary faces a fixed monetary cost such as _ and Jane faces a fixed time cost such as _____.

All of the following are reasons why a household would choose to participate in a workfare program except:

Why might self targeting in a workfare program fair to prevent benefits from leaking to non-poor households?

Quiz 16: Workfare

Figure 16.2 -According to figure 16.2 in each panel the solid line (baT) represents___________.

Programs that provide opportunities for poor households to earn income by performing low-skill labor in public works projects are called____________.

Figure 16.2 -According to empirical data on targeting outcomes,the results have been anything but perfect,they reveal that:

Participation in a workforce program can alter participants' behavior in all of the following ways except:

Figure 16.1 Mary \text { Mary } Mary Mary Jane \text { Jane } Jane Jane -According to figure 16.1 how much can each woman consume if they don't participate in the workfare program?

Workfare program participation raises a participants' well-being more,all else equal,the _________ the program wage exceeds the wage in the participant's alternative activity and the __________are the worker's fixed costs of participation.:

Figure 16.1 Mary \text { Mary } Mary Mary Jane \text { Jane } Jane Jane -According to figure 16.1 which person will choose to participate in a workfare programs?