Question 1

What characteristics of the poor are not addressed by individual development
accounts?

Accepted Answer

Individual Development Accounts (IDAs) are savings accounts designed to help low-income individuals build assets and achieve financial stability by providing matched savings for specific purposes such as education, home ownership, or starting a business. While IDAs can be a powerful tool for financial empowerment, there are several characteristics of the poor that they do not address:

1. Immediate Financial Needs: IDAs are structured for long-term savings and asset-building, which means they are not designed to address immediate or emergency financial needs that many low-income individuals face, such as paying for food, utilities, or unexpected medical expenses.

2. Income Instability: Many low-income individuals experience irregular or unpredictable income due to part-time work, seasonal employment, or gig economy jobs. This instability can make it difficult to commit to regular savings, a requirement for most IDA programs.

3. Lack of Financial Literacy: While some IDA programs include financial education components, the depth and effectiveness of this training can vary. Individuals who lack basic financial literacy may struggle to make the most of IDAs or may not participate at all.

4. Access to Banking Services: Some low-income individuals may not have easy access to traditional banking services due to a lack of nearby financial institutions, distrust of banks, or previous negative experiences with overdraft fees and other charges. This can be a barrier to participating in IDA programs.

5. High Debt Levels: IDAs focus on savings and asset accumulation, but they do not directly address high levels of debt that many low-income individuals carry. Debt can be a significant barrier to saving and can undermine the benefits of asset accumulation.

6. Mental Health and Stress: Poverty is often associated with higher levels of stress and mental health issues, which can affect an individual's ability to plan for the future and make consistent financial decisions. IDAs do not directly address these psychological barriers.

7. Systemic Barriers: IDAs cannot address systemic issues such as low wages, lack of affordable housing, inadequate public transportation, and limited access to quality education and healthcare, all of which can perpetuate poverty.

8. Time Constraints: Many low-income individuals work multiple jobs or have caregiving responsibilities that leave them with little time to manage their finances, attend financial education workshops, or participate in other aspects of IDA programs.

9. Cultural and Language Barriers: IDA programs may not be accessible or appealing to individuals from diverse cultural backgrounds or those who do not speak English fluently, which can limit their reach and effectiveness.

10. Eligibility Requirements: Some IDA programs have strict eligibility requirements that may exclude certain individuals who are poor but do not meet specific criteria, such as income thresholds or employment status.

In summary, while Individual Development Accounts can be a valuable tool for promoting financial stability and asset accumulation among low-income individuals, they do not address all the multifaceted challenges faced by the poor, including immediate financial needs, income instability, debt, and systemic barriers. Additional support services and policy interventions are often necessary to comprehensively address poverty and its effects.

Question 2

Your client loses his job because the company he worked for could not compete with the less costly products produced in another company.How would you describe the
Cause of his unemployment?

Accepted Answer

C

Question 3

What structural problems attributed to the poverty index does the Supplementary Poverty Measure resolve? Which are not resolved?

Accepted Answer

The Supplementary Poverty Measure (SPM) resolves several structural problems attributed to the official poverty index. One of the main issues with the official poverty measure is that it only takes into account pre-tax cash income, which can lead to an underestimation of poverty levels. The SPM, on the other hand, takes into account additional sources of income such as tax credits, non-cash benefits (like SNAP or housing assistance), and necessary expenses (like childcare and out-of-pocket medical expenses). This provides a more accurate picture of the resources available to individuals and families, and therefore a more accurate measure of poverty.

Additionally, the SPM adjusts for regional cost of living differences, which the official poverty measure does not. This is important because the cost of living can vary significantly from one area to another, and not accounting for this can lead to an inaccurate representation of poverty levels.

However, there are still some structural problems that the SPM does not fully resolve. For example, the SPM still relies on income thresholds to determine poverty, which may not fully capture the financial struggles of individuals and families. It also does not account for certain non-cash benefits, such as employer-provided health insurance, which can be a significant factor in determining financial well-being.

Overall, while the SPM addresses some of the structural problems of the official poverty measure, there are still limitations to consider. It is important to continue evaluating and refining measures of poverty to ensure they accurately reflect the economic realities faced by individuals and families.

Question 4

The concept of culture of poverty

Accepted Answer

The concept of culture of poverty first came into being during the Great Depression.

Question 5

Almost one in four U.S.workers lives in or around the edges of poverty.Less than half of the parents owed child support in 2007 received the full amount.The authors
Do not connect these two facts;however,what inference do you think is the most
Likely to be correct?

Accepted Answer

The answer of Almost one in four U.S.workers lives in...

Question 6

The concept of public assistance programs providing only maintenance

Accepted Answer

Public assistance programs, such as welfare, usually have regulations that limit the accumulation of assets. This means that individuals receiving assistance are expected to use it only for their basic needs (maintenance) and not to save up money or accumulate assets. This is done to ensure that the program benefits those who truly need it and to prevent fraud and abuse. The other answer choices do not directly relate to the concept of providing only maintenance through public assistance programs.

Question 7

There are many critics of the way the official unemployment rate is determined. What would you say is the most significant criticism?

Accepted Answer

The answer of There are many critics of the way...

Question 8

Your client expresses discomfort with her lifestyle because both of her sisters live in larger and newer houses in a better part of town.The sense of deprivation is most
Similar to the idea of:

Accepted Answer

The answer of Your client expresses discomfort with her lifestyle...

Question 9

When might it be appropriate to obtain credit through the alternative financial
services sector?

Accepted Answer

The answer of When might it be appropriate to obtain...

Question 10

According to the University of Michigan's Panel Study of Income Dynamics,the most common events impacting the poverty status of a family include job loss,marriage
Dissolution,and childbirth.Who would you expect to be most likely poor?

Accepted Answer

The answer of According to the University of Michigan's Panel...

Question 11

Charles Murray's 1994 book,The Bell Curve,argued that

Accepted Answer

Charles Murray argued that socioeconomic inequality was partially due to genetic differences in intelligence, which he believed played a significant role in determining socioeconomic status. This controversial claim has been widely criticized by many social scientists and researchers.

Question 12

What is the difference between absolute and relative poverty? Which is given more focus in contemporary social welfare policy?

Accepted Answer

The answer of What is the difference between absolute and...

Question 13

One reason for the increase in the numbers of working poor is due to the

Accepted Answer

The answer of One reason for the increase in the...

Question 14

Traditional poverty measures have been determined to be inadequate due to a number of factors.The new Supplementary Poverty Measure is better primarily
Because:

Accepted Answer

The answer of Traditional poverty measures have been determined to...

Question 15

One who thinks poverty results from exploitation by capitalists who depresses wages by have workers compete for jobs is best called:

Accepted Answer

The answer of One who thinks poverty results from exploitation...

Question 16

The rural poor are more likely that the urban poor to:

Accepted Answer

The answer of The rural poor are more likely that...

Question 17

The poverty line and the poverty threshold

Accepted Answer

Both the poverty line and the poverty threshold are used to measure poverty, but they have different methods of calculation. The poverty line is based on a formula that considers the cost of a minimum food diet, while the poverty threshold takes into account additional expenses such as housing and transportation.

Question 18

What are the differences between the primary and secondary labor markets?

Accepted Answer

The answer of What are the differences between the primary...

Question 19

Why would you as a social worker be in favor of the Living Wage movement?

Accepted Answer

The answer of Why would you as a social worker...

Quiz 5: Poverty in America

What characteristics of the poor are not addressed by individual development accounts?

Your client loses his job because the company he worked for could not compete with the less costly products produced in another company.How would you describe the Cause of his unemployment?