LATEST Econ Chapter 14 CORRECT ANSWERS 100%

When reference is made to the ____________, it means the specific amount of income needed for a basic standard of living. A. poverty trap B. income line C. income gap D. poverty line - ANSWER D A situation of __________ arises when one group receives a higher share of total income or wealth than others. A. poverty B. inequality C. poverty entrapment D. quintiles - ANSWER B Antipoverty programs that are set up so that the amount of government benefits will decline substantially as poor people earn more income typically create ______________. A. a poverty trap B. an income inequity C. a poverty line D. a safety net - ANSWER A An individual whose income level is just above the poverty line would most likely be classified as being a member of the _____________ . A. working poor B. poverty trapped C. near-poor D. illiterate poor - ANSWER C The group of government programs that provide assistance to the poor and the near- poor is synonymous with which of the following? A. safety net B. safety quintiles C. poverty net D. antipoverty net - ANSWER A A method often used by economists to look at distribution of income in a society's economy involves A. programs for wealth redistribution. B. quintiles, or dividing a whole group into fifths. C. imposing taxes to redistribute wealth. D. quads, or dividing a whole group into fourths. - ANSWER B A Lorenz curve refers to a graphic illustration of the share of population on the _______________ and the cumulative percentage of total income received on the __________________ . A. left quintile; right quintile B. right quintile; left quintile C. horizontal axis; vertical axis D. vertical axis; horizontal axis - ANSWER C In circumstances dealing with poverty, the term ______________ means taking income from those with higher incomes and providing income to those with lower incomes. A. safety net B. estate tax C. minimum wage D. redistribution - ANSWER D ______________ allows the government to collect wealth for redistribution based on the amount of stored wealth that is being passed on in the form of an inheritance. A. An inheritance tax B. A redistribution tax C. An estate tax D. A death tax - ANSWER C With respect to market forces and/or labor markets that determine peoples' wages, which of the following is a true statement? A. labor markets consider how much a family needs for health care B. market forces consider what happens to families in their business decisions C. labor markets consider how much a family needs for necessities D. labor markets create considerable inequalities relating to income - ANSWER D _________________ is the level where half of all families had more than that level and half had less. A. The first quintile B. The third quintile C. The median D. The quintile - ANSWER C In the U.S., comparisons of high and low incomes raise issues of economic ______________________. A. inequality and poverty B. equality and wealth distribution C. wealth distribution and poverty D. equality and inequality - ANSWER A Poverty is measured by the number of people who fall below A. a certain level of income. B. the income needed for a basic standard of living. C. the nation's economic poverty line. D. all the above are correct. - ANSWER D Economic inequality compares the share of the ____________ in society that is received by different groups; such as comparing the share of income received by the _________ to the share of income received by the _____________ . A. total wealth; top 10%; bottom 10% B. answers a and c are correct. C. total income; bottom 10%; top 10% D. none of the above are correct. - ANSWER B In the United States, the official definition of the poverty line traces back to a single person: ___________________, whose idea was to ___________________________. A. Mollie Orshansky; define a poverty line based on the cost of a healthy diet B. Lawrence Ellison; define a range of government policies to reduce poverty C. Molly Orshansky; define a range of government policies to reduce poverty