Econ Chapter 14 Exam Test Questions And Answers Verified 100% Correct

Econ Chapter 14 Exam Test Questions And Answers Verified 100% Correct If Congress voted every few years to redefine completely what poverty means, . If incomes rise for both low-income and high-income workers, but rise less for the high- income workers, A. then poverty will rise and inequality will fall B. then poverty will fall and inequality will rise. C. then poverty will rise and inequality will rise. D. then poverty will fall and inequality will fall. -ANSWER D If a rise in incomes for both low-income and high-income workers is higher for the high- income workers, A. then poverty will fall and inequality will rise. B. then poverty will rise and inequality will rise. C. then poverty will fall and inequality will fall. D. then poverty will rise and inequality will rise. -ANSWER A If a rise in incomes is the same proportion for both low-income and high-income workers, A. then poverty will rise and inequality will remain unchanged. B. then poverty will rise and inequality will rise. C. then poverty will fall and inequality will remain unchanged. D. then poverty will fall and inequality will fall. -ANSWER C If the income level falls for low-income workers, but remains unchanged for high-income workers, A. then poverty will rise and inequality will fall. B. then poverty will fall and inequality will fall. C. then poverty will fall and inequality will rise. D. then poverty will rise and inequality will rise. -ANSWER D A. it will be useful to have a poverty line whose basic definition changes a lot. B. then it will set two poverty lines that it applies to welfare and the near-poor C. then a substantial share of the U.S. population will subsist in dire poverty. D. then it would be difficult to compare poverty rates over time. -ANSWER D If the level of incomes rises for high-income workers but doesn't change for low-income workers, A. then poverty will not change and inequality will fall. B. then poverty will not change and inequality will rise. C. then poverty will rise and inequality will fall. D. then poverty will fall and inequality will rise. -ANSWER B If incomes rise for low-income workers but don't change for high-income workers, A. then poverty will fall and inequality will fall. B. then poverty will rise and inequality will fall. C. then poverty will rise and inequality will rise. D. then poverty will fall and inequality will rise. -ANSWER A If the poverty trap were made even more difficult to overcome because a working mother will have extra expenses like transportation and child care that a nonworking mother will not face, then A. she will have a powerful incentive to work more than one job. B. the family better off than if she did not work at all. C. her economic gains from working will be even smaller. D. working now and in the future is even more attractive. -ANSWER C How does being caught in a poverty tap affect an individual's future job prospects? A. it causes working in the future even less attractive B. it causes a lack of job experience and contacts C. it creates a powerful incentive to acquire skills training D. it creates the outcomes presented in both a and b -ANSWER D A government program guarantees $18,000 in income, even for those who do not work at all. If the recipient earns income by working, then the $18,000 benefit is reduced by 50 cents for each $1 earned. Will this program eliminate the poverty trap? A. Yes, enacting such a program will eliminate the poverty trap. B. No, enacting such a program may still reduce the incentive to work. C. Yes, and enacting such a program will cost the government less money. D. Yes, enacting such a program will create adequate incentive to work. -ANSWER B A government has decided to phase out its antipoverty program support payments more slowly to help the near-poor become self-sufficient. One criticism about this policy is likely to be A. that this antipoverty program costs the government more money. B. that the near-poor will not be required to pay back benefits. C. that the near-poor may still lack skills for menial jobs. D. that antipoverty programs shift wealth from the rich to the poor. -ANSWER A In the U.S., government support programs that are focused specifically on the poor include which of the following? A. Medicaid credits B. welfare C. income stamps D. food credits -ANSWER B From the Great Depression of the 1930s until 1996, the United States' most visible antipoverty program was Aid to Families with Dependent Children, which provided cash payments to A. married men with families who were below the poverty line. B. married women with families who were below the poverty line. C. all mothers with children who were below the poverty line. D. only those orphans who were living below the poverty line. -ANSWER C Under which of the following government programs would the federal government's welfare spending rise or fall depending on the number of poor people, and on how each state set its own welfare contribution? A. ADFC B. TANF C. TNAF D. AFDC -ANSWER D Under which of the following antipoverty programs does the federal government give a fixed amount of money to each state? A. ADFC B. TANF C. AFDC D. TNAF -ANSWER B Which of the following is a key requirement imposed under the Welfare Reform Act's new antipoverty program?