Question_Doc13_15Dec_6th

Question_Doc13_15Dec_6th

Question

11)The threshold income level
originally used to determine official poverty statistics was based

on

A) an income three times the amount
of money needed to purchase a nutritionally adequate diet. B) standards
provided by the United Nations based on studies done in poor countries around
the world.

C) the highest income of the
lowest one-fifth of families in the country. D) a per capita income
of $1,000 in 1958 prices.

12)Which of the following CANNOT be
eliminated in a growing economy such as the U.S. economy?

A) absolute poverty B) relative
poverty

C) both absolute and relative
poverty

D) Neither absolute nor relative
poverty can be eliminated.

13)When poverty is defined by an
absolute real income level, what will happen to the poverty rate if income per
capita in a country continues to grow?

A) The poverty rate will increase
forever. B) The poverty rate will eventually be zero.

C) The poverty rate will increase
and then decrease. D) The poverty rate will never change.

14)When poverty is defined by an
relative real income level, what will happen to the poverty rate if the
distribution of income is not perfectly equal?

A) The poverty rate will increase
forever. B) The poverty rate will eventually be zero.

C) The poverty rate will always
remain constant. D) The poverty rate will change, but always exist.

15) Relative poverty

A)has been eliminated in the United
States.

B)will always be with us.

C)has never existed in the United
States.

D)can be eliminated in the next 20
years.

16) Relative poverty refers to

A)how a family’s income compares to
the incomes of those around them.

B)poverty levels at a stated income
cutoff.

C)the number of poor in one state
relative to another.

D)None of the above.

17)If we include cash benefits
and in-kind benefits available to low-income people, the
share of the U.S. population in poverty

A) drops dramatically. B) increases
somewhat. C) increases dramatically. D) does not change.

18)If an individual
receives in-kind transfers from the government in the form of food
stamps, public housing, and so on, his money income is

A) less than his total income. B)
greater than his total income. C) the same as his total income.

D) equal to
his in-kind income plus his wages.

19)Which of the following statements
about the Social Security (OASDI) program is FALSE? A) Benefits are paid to
individuals who would be financially secure in their absence.

B) Benefits are based on need.

C) Benefits are an intergenerational
transfer program from those who work to those who don’t work.

D) When an insured worker dies,
benefits continue for widows or other dependents.

20)Which of the following statements
is an accurate statement about the Social Security (OASDI) program?

A) The program is financed by
voluntary contributions. B) Only 50 percent of workers are covered by OASDI. C)
Benefits are based on financial need.

D) The program transfers income from
those who work to those who do not work.

21)Which of the following statements
about Social Security is FALSE?

A)Social Security is an
intergenerational transfer where the benefits paid are only roughly related to
past earnings.

B)Over 90 percent of all employed
workers in the United States are covered by Social Security.

C)Benefit payments under Social
Security are based on the recipient’s need.

D)Benefit payments under Social
Security redistribute income from young to old.

22)Which of the following statements
about the Supplemental Security Income (SSI) program is FALSE?

A) It is designed to establish
nationwide minimum incomes for the aged, the blind, and the disabled

B) Benefits are based on need.

C) Recipients who receive benefit
payments under Social Security are also eligible for SSI. D) It covers children
and individuals with mental disabilities, including drug addicts and
alcoholics.

23)Which of the following statements
about the Earned Income Tax Credit Program (EITC) program is FALSE?

A) On net the EITC discourages work
by low- or moderate- income earners more than it rewards work.

B) It provides rebates of Social
Security taxes to low-income workers.

C) Recipients who receive benefit
payments under Social Security are also eligible for SSI. D) It is the largest
poverty reduction program in the U.S..

24)All of the following are social
insurance programs designed to attack poverty EXCEPT

A)Social Security.

B)temporary assistance to needy
families.

C)food stamps.

D)tuition assistance.

25)Which of the following income
maintenance programs is designed to establish nationwide minimum incomes for
the aged, the blind, and the disabled?

A) The Old-Age Survivors’
and Disability Insurance (OASDI) program B) The Supplemental Security Income
(SSI) program

C) The Temporary Assistance to Needy
Families (TANF) program D) The food stamps program

26)Under the Social Security program
currently in existence,

A)benefits are based on need.

B)benefits are determined by whether
or not one contributed to the system.

C)benefits are provided to everyone
who contributed to the system EXCEPT those under private retirement programs
that provide an annual income in excess of $13,500.

D)benefits are guaranteed to be no
lower for future retirees than for current retirees.

27)The funds paid to the government
today for Social Security taxes are A) invested to provide for the future
benefits of the taxpayers.

B) saved to ensure sufficient
resources in the future to pay the benefits of workers today when they reach
retirement age.

C) used by the government to
purchase goods and services that will enhance the future productivity of
business in the country.

D) used to pay the benefits of those
who are currently retired.

28)The purpose of the Supplemental
Security Income program is

A)to provide a minimum income for
all households with children.

B)to provide a guaranteed minimum
income for all Americans.

C)to provide a minimum income for
the aged, blind, and the disabled.

D)to supplement Social Security for
the elderly with medical problems.

29)The purpose of the Temporary
Assistance to Needy Families program is A) to provide rebates of Social
Security taxes to low-income workers.

B) to provide cash assistance and
supportive services to assist the family, helping them achieve
economic self-sufficiency.

C) to provide a minimum income for
the aged, blind, and the disabled. D) to supplement Social Security for the
elderly with medical problems.

30)Current income maintenance
programs

A)often provide benefits to people
who are working and earning substantially more than the poverty level.

B)reduce the incentive of recipients
to work.

C)have safeguards to ensure that
recipients work whenever physically able.

D)fail to make the income
distribution more equal.

31)The purpose of the Earned Income
Tax Credit Program (EITC) is to A) provide rebates of Social Security taxes
to low-income workers.

B) encourage low-
and moderate-income workers to take second jobs to increase their
income. C) provide in-kind services such as food stamps and public
housing to those individuals who have poor credit.

D) give tax credits to low-income individuals
who do volunteer work in their communities.

32)The official number of poor in
the United States

A)is higher today than at any other
time in our history.

B)has risen steadily since 1981.

C)was lowest in the late 1960s.

D)is lowest today.

33)Originally, the threshold income
level used to determine official poverty statistics was based

on

A) a per capita income of $3000 in
1955 prices.

B) the lowest income of the second
quartile of families in the country.

C) an income three times greater than
necessary to purchase a nutritionally adequate diet. D) figures developed by a
committee in the American Economic Association.

34)Which of the following statements
is TRUE?

A)A growing economy should see a
decline in relative poverty but not in absolute poverty.

B)A growing economy should see a
decline in absolute poverty but not in relative poverty.

C)A growing economy should see a
decline in both absolute and relative poverty.

D)A growing economy is usually
unrelated to changes in either absolute or relative poverty.

35) Which of the following
statements is FALSE?

A)The official absolute poverty
level in the United States is far above the average income of many countries in
the world.

B)In a relative sense, the problem
of poverty will always exist.

C)An equal distribution of income
would eliminate relative poverty.

D)An equal distribution of income
would eliminate absolute poverty.

36) Many argue the poor are getting
poorer, at least in a relative sense. Evidence that contradicts this is that

A)household income of the lowest
twenty percent of households relative to the highest twenty percent of
households has fallen over the last thirty years.

B)the official poverty level of
income has increased over the years.

C)household spending of the lowest
twenty percent of households relative to the highest twenty percent of
households has held constant over the last thirty years.

D)the pretax distribution of income
is more equal than the after-tax distribution of income.

37)The official poverty level is based
on pretax income including cash. Which of the following statements is correct
regarding this official specification of poverty?

A) This is a good definition of
poverty since it is made up of the income from productive resources.

B) This is not a good definition of
poverty because our tax structure consists of different tax brackets based on
income.

C) This is not a good definition of
poverty because it does not include in-kind subsidies. D) This is a
good definition of poverty because it is easy to measure.

38)Social Security is

A)an insurance program operated by
the federal government.

B)a retirement program that invests
the person’s contributions into interest-earning financial assets so
the proceeds can fund the person’s retirement.

C)a social insurance program that
guarantees that an elderly person will never fall below the poverty level.

D)an intergenerational transfer
program that only vaguely relates to past earnings.

39)The income transfers that a
person receives from Social Security A) is not related to the amount that they
have contributed.

B) is a yearly proportion of the
amount contributed.

C) is the same for everyone whether
they contributed to the system or not. D) depends entirely on the amount
received from private pensions.

40)Which program provides assistance
to the aged, blind and disabled? A) Social Security Program

B) Supplemental Security Income
program C) TANF

D) Earned Income Tax Credit

41)The government program that
provides aid to families in need is A) TANF.

B) Social Security program.

C) Supplemental Security Income
program. D) Earned Income Tax Credit.

42)Which income maintenance program
was started to support the nation’s farmers? A) Supplemental Security Income

B) Food Stamps

C) Earned Income Tax Credit Program
D) AFDC

43)The program that was created to
provide rebates of Social Security taxes to low-incomeworkers is

A) Supplemental Security Income. B)
Food Stamps.

C) Earned Income Tax Credit Program.
D) TANF.

44)Since the War on Poverty was
started in 1965, the United States has spent more than $12 trillion on income
maintenance programs. The effect has been to

A) reduce poverty levels
substantially. B) reduce poverty levels moderately.

C) have virtually no effect on
poverty levels. D) increase poverty substantially.

45)In an attempt to reduce the
poverty rate, there has recently been a movement away from income maintenance
programs to

A) Supplemental Security Income
programs. B) reducing the age a person can retire at. C) encouraging people to
get jobs.

D) incorporating the Lorenz policy
in decisions.

46)The USDA threshold income level
was originally based on the cost of

A)housing.

B)transportation.

C)basic clothing.

D)a nutritionally adequate food
plan.

47)Which of the following groups of
U.S. residents would likely qualify for SSI benefits? A) college students

B) incarcerated murderers C) the
disabled

D) new federal retirees

48)The ________ program was created
in 1975 to provide rebates of Social Security taxes tolow-income workers.

A) food stamp B) SSI

C) TANF D) EITC

49)Which of the following statements
is FALSE regarding the definition of poverty? A) A threshold income level is
used to define poverty.

B) Adjustments to the poverty level
are made on the basis of changes in the Consumer Price Index.

C) Real incomes in the United States
have been growing at a compounded annual rate of almost 2 percent per capita.

D) Poverty cannot be defined in
relative terms.

50)In a growing economy, it is
possible to eliminate

A)absolute poverty.

B)relative poverty.

C)both absolute and relative
poverty.

D)either absolute nor relative
poverty.

Question_Doc13_15Dec_6th


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Question_Doc13_15Dec_6th_-_Answer.docx (17.4 KB)

Preview: program xx A) xx provide rebates xx Social Security xxxxx to low-income workers xx xx provide xxxx assistance and xxxxxxxxxx services to xxxxxx the xxxxxxx xxxxxxx them xxxxxxx economic self-sufficiency C) xx provide a xxxxxxx income xxx xxx aged, xxxxxx and the xxxxxxxx D) to xxxxxxxxxx Social xxxxxxxx xxx the xxxxxxx with medical xxxxxxxx Answer: B30)Current xxxxxx maintenance xxxxxxxxxxxxxxx xxxxxxx benefits xx people who xxx working and xxxxxxx substantially xxxx xxxx the xxxxxxx level B)reduce xxx incentive of xxxxxxxxxx to xxxx xxxxxx safeguards xx ensure that xxxxxxxxxx work whenever xxxxxxxxxx able xxxxxx xx make xxx income distribution xxxx equal Answer: xxxxxxx purpose xx xxx Earned xxxxxx Tax Credit xxxxxxx (EITC) is xx A) xxxxxxx xxxxxxx of xxxxxx Security taxes xxxxxxxxxxxxxxxxxxxxxxx B) encourage xxxx and moderate-income workers xx xxxx second xxxx to increase xxxxx income C) xxxxxxxxxxxxxxxxxxxxxxxxxx such xx xxxx stamps xxx public housing xx those individuals xxx have xxxx xxxxxx D) xxxx tax credits xxxxxxxxxxxxxxxxxxxxxxxxxxx who do xxxxxxxxx work xx xxxxx communities xxxxxxx A32)The official xxxxxx of poor xx the xxxxxx xxxxxxxxxx higher xxxxx than at xxx other time xx our xxxxxxx xxxxx risen xxxxxxxx since 1981 xxxxx lowest in xxx late xxxxx xxxx lowest xxxxx Answer: C33)Originally, xxx threshold income xxxxx used xx xxxxxxxxx official xxxxxxx statistics was xxxxxxxxx a per xxxxxx income xx xxxxx in xxxx prices B) xxx lowest income xx the xxxxxx xxxxxxxx of xxxxxxxx in the xxxxxxx C) an xxxxxx three xxxxx xxxxxxx than xxxxxxxxx to purchase x nutritionally adequate xxxx D) xxxxxxx xxxxxxxxx by x committee in xxx American Economic xxxxxxxxxxx Answer: x xxxxxxxx of xxx following statements xx TRUE?A)A growing xxxxxxx should xxx x decline xx relative poverty xxx not in xxxxxxxx poverty xxx xxxxxxx economy xxxxxx see a xxxxxxx in absolute xxxxxxx but xxx xx relative xxxxxxx C)A growing xxxxxxx should see x decline xx xxxx absolute xxx relative poverty xxx growing economy xx usually xxxxxxxxx xx changes xx either absolute xx relative poverty xxxxxxx B35) xxxxx xx the xxxxxxxxx statements is xxxxxxxxxxx official absolute xxxxxxx level xx xxx United xxxxxx is far xxxxx the average xxxxxx of xxxx xxxxxxxxx in xxx world B)In x relative sense, xxx problem xx xxxxxxx will xxxxxx exist C)An xxxxx distribution of xxxxxx would xxxxxxxxx xxxxxxxx poverty xxxx equal distribution xx income would xxxxxxxxx absolute xxxxxxx xxxxxxx D36) xxxx argue the xxxx are getting xxxxxxx at xxxxx xx a xxxxxxxx sense Evidence xxxx contradicts this xx thatA)household xxxxxx xx the xxxxxx twenty percent xx