FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 20: Income Inequality and Poverty.

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 151

Multiple Choice

Review LaterAdd Note

Review Later

"An extra dollar of income gives more additional satisfaction to a poor person than to a rich person." This is an important assumption of which political philosophy?

A) utilitarianism
B) liberalism
C) libertarianism
D) republicanism

E) A) and C)
F) None of the above

Correct Answer

verified

Show Answer

Question 152

Multiple Choice

Review LaterAdd Note

Review Later

In-kind transfers are politically popular because

A) they provide high quality food and shelter.
B) they provide cash.
C) allow resale of food stamps for cash, if needed.
D) the public believes that the aid is not going to support alcohol and drug addiction.

E) None of the above
F) C) and D)

Correct Answer

verified

Show Answer

Question 153

Multiple Choice

Review LaterAdd Note

Which of the following is correct?

The utilitarian justification for redistributing income is based on the assumption of diminishing marginal utility.

According to the doctrine of liberalism,principles of justice are the result of

Based on data from 2008,the top fifth of all families received approximately what percent of all income in the United States?

A society consists of three individuals: Arthur,Billie,and Chris.In terms of income and utility,Arthur is currently best-off,Billie ranks in the middle,and Chris is worst-off.Which of the following statements is correct?

The distribution of income for Danville is as follows: If the poverty rate in Danville is 33.3 percent,what is the poverty line in Danville?

Temporary Assistance for Needy Families (TANF)is an example of a negative income tax program.

In 2008 the top 20% of income earners accounted for over 80% of all income received by United States' families.

The poverty line is set by the government so that 10 percent of all families fall below that line and are thereby classified as "poor."

The marketplace allocates resources

Among all countries in the world,the United States has the most income inequality.

Since 1959 when the official data on the poverty rate began,the poverty rate was at its highest in

Economists who support minimum-wage legislation are likely to believe that the

Even though the average income in the United States has continued to grow,the poverty rate has increased to over 20% since the early 1970s.

Scenario 20-1 Suppose that a society is made up of five families whose incomes are as follows: $120,000; $90,000; $30,000; $30,000; and $18,000. The federal government is considering two potential income tax plans: Plan A is a negative income tax plan where the taxes owed equal 1/3 of income minus $20,000. Plan B is a two-tiered plan where families earning less than $35,000 pay no income tax and families earning more than $35,000 pay 10% of their income in taxes. The income tax revenue collected from those families earning over $35,000 is then redistributed equally to those families earning less than $35,000. -Refer to Scenario 20-1.Assuming that utility is directly proportional to the cash value of after-tax income,which government policy would an advocate of liberalism prefer?

Table 20-9 Poverty Thresholds in 2002, by Size of Family and Number of Related Children Under 18 Years [Dollars] Source: U. S. Bureau of the Census, Current Population Survey. -Refer to Table 20-9.What is the poverty line for a family of three with one child?

In the U.S.economy,labor earnings make up about

Many Democrats who campaigned in the 2006 elections supported raising the U.S.minimum wage.Supporters of raising the minimum wage argue that minimum-wage laws are