Question 1

Which welfare term describes welfare programs that restrict benefits by some demographic characteristic?
A) in-kind welfare
B) categorical welfare
C) means-tested welfare
D) nonhedonic welfare

Accepted Answer

Categorical welfare programs restrict benefits based on a specific demographic characteristic, such as income level, age, or disability status. In-kind welfare programs provide benefits in the form of goods or services, rather than cash. Means-tested welfare programs limit benefits based on a recipient's income or assets. Nonhedonic welfare programs provide benefits that improve a person's quality of life, such as education or job training programs.

Question 2

In the United States from the late 1960s through the late 1970s,the share of income accruing to the bottom income quintile _____ and the share accruing to the top income quintile _____.
A) fell; fell
B) fell; grew
C) grew; grew
D) grew; fell

Accepted Answer

D

Question 3

In 2013 in the United States,the poorest 20% of the population receive approximately _____ of aggregate income.
A) 3.2%
B) 8.5%
C) 14.5%
D) 19.5%

Accepted Answer

According to the U.S Census Bureau, the bottom 20% of households had an average income of $10,937 in 2013. This represents only 3.2% of the total aggregate income of the U.S. population.

Question 4

The share of a nation's total income that accrues to the poor relative to the rich is a measure of:
A) the poverty line.
B) relative income inequality.
C) the iron triangle of welfare programs.
D) absolute deprivation.

Accepted Answer

The share of a nation's total income that accrues to the poor relative to the rich is a measure of relative income inequality. It reflects the degree to which the income distribution in a society is unequal, with some people earning much more than others. The poverty line is a separate concept that refers to a specific income threshold below which individuals or families are considered to be in poverty. The iron triangle of welfare programs is a political concept that refers to the way in which interest groups, congressional committees, and bureaucratic agencies work together to shape social policy. Absolute deprivation refers to a lack of basic necessities, such as food, shelter, and clothing, and is not directly related to income inequality.

Question 5

Which statement suggests that a relative measure of inequality is better than an absolute measure?
A) Self-reported well-being may fall as neighbors' incomes rise.
B) If those worse off achieve a sufficient level of consumption,it doesn't matter how rich the richest people are.
C) Living in a 1,000-square-foot house is no more adequate when others live in 1,500-square-foot houses than when others live in 3,000-square-foot houses.
D) A person's well-being is determined by their access to basic necessities,such as food,clothing,and shelter.

Accepted Answer

The statement suggests that the self-reported well-being of an individual is influenced by the income of their neighbors, indicating that a relative measure of inequality is better than an absolute measure.

Question 6

Suppose someone criticizes the federal measure of the poverty line by saying that it does not account for Medicaid receipts,but that it should account for them.This is an example of which of the following criticisms of the federal poverty line?
A) The definition of income is incomplete.
B) The bundle has changed.
C) Differences in the cost of living across areas are ignored.
D) It is inconsistent with international measures.

Accepted Answer

This criticism is related to the definition of income used in determining poverty, suggesting that it should include Medicaid receipts as part of income. This falls under the criticism that the definition of income is incomplete as it does not consider such receipts as part of income.

Question 7

Which welfare term best describes welfare programs that provide medical services to recipients?
A) in-kind welfare
B) categorical welfare
C) means-tested welfare
D) nonhedonic welfare

Accepted Answer

In-kind welfare programs provide goods and services directly to the recipients, such as medical services, food stamps, or housing assistance. Medical services are a type of in-kind welfare as they are provided directly to the recipient, rather than in the form of cash assistance (which would be means-tested welfare). Categorical welfare refers to programs that are targeted at specific groups, such as veterans, and nonhedonic welfare is not a recognized term in the field of welfare policy.

Question 8

In Sandtown-Winchester,a low-income neighborhood in Baltimore,the average life expectancy is _____ years; only 3 miles away in the wealthy Baltimore neighborhood of Roland Park,life expectancy averages _____ years.
A) 48; 67
B) 67; 84
C) 75; 84
D) 83; 87

Accepted Answer

The average life expectancy in Sandtown-Winchester is likely to be lower due to the socioeconomic factors associated with poverty, such as inadequate access to healthcare, poor nutrition, and exposure to environmental hazards. In contrast, the wealthy neighborhood of Roland Park is likely to have better access to healthcare resources, healthier food options, and fewer environmental hazards. The 19-year difference in life expectancy between the two neighborhoods highlights the profound impact that socioeconomic factors can have on health outcomes.

Question 9

In the United States from 1980 to the present,the share of income accruing to the bottom income quintile _____ and the share accruing to the top income quintile _____.
A) fell; fell
B) fell; grew
C) grew; grew
D) grew; fell

Accepted Answer

The share of income for the bottom quintile has decreased, while the share for the top quintile has increased, reflecting growing income inequality.

Question 10

Which of the following is NOT true about the evolution of poverty in the United States?
A) In 2009,a family of four with an annual income below $23,050 was considered to be living in poverty.
B) The poverty rates fell for all persons,for the elderly,and for the very young in the 1960s and early 1970s.
C) The share of income received by the lowest quintile in the United States is smaller than in any other developed nation.
D) Poverty rates for those under 18 and those over 65 have risen since the 1960s.

Accepted Answer

The statement "Poverty rates for those under 18 and those over 65 have risen since the 1960s" is not true. In fact, poverty rates for the elderly have consistently declined since the 1960s due to the establishment of social security and other government programs aimed at providing financial assistance to seniors. However, poverty rates for those under 18 have remained stubbornly high, fluctuating around 20% in recent decades.

Question 11

Suppose the government sends a monthly check to those earning less than $400 per week.This is an example of:
A) in-kind welfare.
B) categorical welfare.
C) cash welfare.
D) earned income.

Accepted Answer

Cash welfare refers to direct payments in the form of cash to eligible individuals or households. The government sending a monthly check to those earning less than $400 per week is an example of cash welfare. In-kind welfare refers to benefits provided in the form of goods and services rather than cash, while categorical welfare refers to programs that provide benefits to individuals or families that meet specific eligibility criteria. Earned income refers to income earned from employment.

Question 12

Currently in the United States,the share of income earned by the top 1% is now similar to what it was in the:
A) 1920s.
B) 1930s.
C) 1950s.
D) 1960s.

Accepted Answer

According to numerous studies and analysis, the share of income earned by the top 1% in the United States is currently similar to what it was in the 1920s- a period of high inequality and concentration of wealth. In the past few decades, income inequality has been on the rise, and the wealthiest 1% of Americans now hold a significant share of the country's income and wealth. This trend is often compared to the era of the "roaring twenties," which was marked by excessive wealth for a few and widespread economic hardship for many.

Question 13

Suppose someone criticizes the federal measure of the poverty line by saying that it should,but does not,account for regional differences in housing prices.This is an example of which of the following criticisms of the federal poverty line?
A) It is based on an oversimplified definition of family size.
B) The bundle has changed.
C) Differences in cost of living across areas are ignored.
D) It is inconsistent with international measures.

Accepted Answer

This criticism points out that the poverty line does not adjust for regional differences in the cost of living, particularly in housing prices. This can lead to an inaccurate estimation of poverty rates in different areas.

Question 14

Which refers to the federal government's measure of "minimally acceptable" income?
A) the poverty line
B) relative income inequality
C) the iron triangle
D) income shares

Accepted Answer

The poverty line is the federal government's measure of "minimally acceptable" income. It is the level of income below which a person or a family is considered to be living in poverty. It is used to determine eligibility for certain government programs and is regularly updated based on inflation and changes in the cost of living.

Question 15

At its peak,cash welfare spending by the federal government amounted to:
A) 1.7% of the federal budget.
B) 10.7% of the federal budget.
C) 24.5% of the federal budget.
D) 33.3% of the federal budget.

Accepted Answer

Cash welfare spending by the federal government has historically been a small portion of the federal budget, typically around 1-2% at its peak.

Question 16

Suppose someone criticizes the federal measure of the poverty line by saying that the typical family spends less of its budget on food than families used to spend.This is an example of which of the following criticisms of the federal poverty line?
A) It is based on an oversimplified definition of family size.
B) The bundle has changed.
C) Differences in the cost of living across areas are ignored.
D) It is inconsistent with international measures.

Accepted Answer

This criticism refers to the fact that the federal poverty line is based on a bundle of goods and services that was established in the 1960s and has changed since then. This is important because it means that the poverty line may not accurately reflect current needs and realities. The criticism does not relate to the oversimplified definition of family size, differences in the cost of living across areas, or international measures.

Question 17

Which statement suggests that an absolute measure of poverty is better than a relative measure of inequality for measuring the well-being of less well-off individuals?
A) Self-reported well-being may fall as neighbors' incomes rise.
B) If those least fortunate achieve a sufficient level of consumption,it doesn't matter how rich the richest people are.
C) Driving a $10,000 car is more adequate when others drive $10,000 cars than when others drive $30,000 cars.
D) A person is only living in poverty if they have substantially less than others.

Accepted Answer

This statement suggests that as long as the less fortunate have achieved a sufficient level of consumption, the wealth of other individuals is irrelevant. This implies that an absolute measure of poverty, based on a basic level of consumption, is a better indicator of well-being for the less well-off individuals than a relative measure of inequality.

Question 18

How much the poor have relative to some measure of a reasonable "minimally acceptable" income level can be best described as:
A) relative income inequality.
B) the iron triangle of welfare programs.
C) absolute deprivation.
D) allocative inefficiency.

Accepted Answer

The concept of "minimally acceptable" income level refers to a basic standard of living, below which individuals may experience severe deprivation of basic needs like food, shelter, and healthcare. The measure of how much the poor have relative to this standard is referred to as "absolute deprivation." Therefore, option C is the best choice. Option A, relative income inequality, refers to differences in income between different segments of society and does not specifically address the concept of a minimally acceptable income level. Option B, the iron triangle of welfare programs, is a term used to describe the interplay between Congress, interest groups, and bureaucracy in determining and implementing social welfare policies in the US. Option D, allocative inefficiency, refers to a situation where resources are not allocated in the most efficient or optimal manner.

Question 19

Which welfare term best describes welfare programs that provide recipients with a monthly check?
A) in-kind welfare
B) cash welfare
C) means-tested welfare
D) nonhedonic welfare

Accepted Answer

Cash welfare refers to welfare programs that provide recipients with a monthly check or cash assistance. In-kind welfare, on the other hand, provides goods or services directly to recipients, such as food stamps or public housing. Means-tested welfare refers to welfare programs that are only available to those below a certain income or asset threshold. Nonhedonic welfare refers to the subjective well-being or happiness of individuals, which is not necessarily related to the provision of welfare benefits.

Question 20

In Sandtown-Winchester,a low-income neighborhood in Baltimore,the median household income is _____; only 3 miles away in the wealthy Baltimore neighborhood of Roland Park,median household income is _____.
A) $12,000; $24,000
B) $18,000; $56,000
C) $24,000; $107,000
D) $36,000; $124,000

Accepted Answer

According to the given information, the median household income in Sandtown-Winchester is $24,000, while in Roland Park, it is $107,000, which makes option C the correct answer. Option A is incorrect because the median household income in Sandtown-Winchester is higher than $12,000. Option B is incorrect because the difference between the median household income in the two neighborhoods is much higher than $38,000. Option D is incorrect because the median household income in Sandtown-Winchester is lower than $36,000.

Quiz 17: Income Distribution and Welfare Programs

Which welfare term describes welfare programs that restrict benefits by some demographic characteristic?

In the United States from the late 1960s through the late 1970s,the share of income accruing to the bottom income quintile _ and the share accruing to the top income quintile _.

In 2013 in the United States,the poorest 20% of the population receive approximately _____ of aggregate income.

The share of a nation's total income that accrues to the poor relative to the rich is a measure of:

Which statement suggests that a relative measure of inequality is better than an absolute measure?

Suppose someone criticizes the federal measure of the poverty line by saying that it does not account for Medicaid receipts,but that it should account for them.This is an example of which of the following criticisms of the federal poverty line?

Which welfare term best describes welfare programs that provide medical services to recipients?

In Sandtown-Winchester,a low-income neighborhood in Baltimore,the average life expectancy is _ years; only 3 miles away in the wealthy Baltimore neighborhood of Roland Park,life expectancy averages _ years.

In the United States from 1980 to the present,the share of income accruing to the bottom income quintile _ and the share accruing to the top income quintile _.

Which of the following is NOT true about the evolution of poverty in the United States?

Suppose the government sends a monthly check to those earning less than $400 per week.This is an example of:

Currently in the United States,the share of income earned by the top 1% is now similar to what it was in the:

Suppose someone criticizes the federal measure of the poverty line by saying that it should,but does not,account for regional differences in housing prices.This is an example of which of the following criticisms of the federal poverty line?

Which refers to the federal government's measure of "minimally acceptable" income?

At its peak,cash welfare spending by the federal government amounted to:

Suppose someone criticizes the federal measure of the poverty line by saying that the typical family spends less of its budget on food than families used to spend.This is an example of which of the following criticisms of the federal poverty line?

Which statement suggests that an absolute measure of poverty is better than a relative measure of inequality for measuring the well-being of less well-off individuals?

How much the poor have relative to some measure of a reasonable "minimally acceptable" income level can be best described as:

Which welfare term best describes welfare programs that provide recipients with a monthly check?

In Sandtown-Winchester,a low-income neighborhood in Baltimore,the median household income is _; only 3 miles away in the wealthy Baltimore neighborhood of Roland Park,median household income is _.