Question 1

Government-provided financial funding to households to compensate for bad outcomes such as unemployment, illness, disability, or outliving your savings is known as a:

Accepted Answer

A)  progressive tax system.
B)  social safety net.
C)  social insurance system.
D)  disaster relief program.

Question 2

Which of the following is NOT a means-tested social safety net program in the United States?

Accepted Answer

A)  Medicaid
B)  Social Security
C)  housing assistance
D)  earned income tax credit

Question 3

What relationship exists between income and well-being in the well-being curve found in the figure?

Accepted Answer

A)  a negative relationship with increasing marginal gains in well-being as income rises
B)  a negative relationship with decreasing marginal gains in well-being as income rises
C)  a positive relationship with increasing marginal gains in well-being as income rises
D)  a positive relationship with decreasing marginal gains in well-being as income rises

Question 4

In 2017, _____ of the U.S. population lived in poverty.

Accepted Answer

A)  approximately 13%
B)  20% to 24%
C)  25% to 29%
D)  more than 30%

Question 5

Some safety net programs provide specific goods rather than income or tax breaks. This type of program benefit is known as:

Accepted Answer

A)  an in-kind transfer.
B)  an income-substitute transfer.
C)  a product-specific transfer.
D)  an alternative need transfer.

Question 6

Which U.S. welfare program is an in-kind benefit that is NOT means-tested?

Accepted Answer

A)  Medicaid
B)  Medicare
C)  food stamps
D)  TANF (Temporary Assistance for Needy Families)  program

Question 7

Explain why some economists favor the use of permanent income rather than annual income of a household when examining income inequality in a country.

Accepted Answer

The answer of Explain why some economists favor the use...

Question 8

Temporary Assistance for Needy Families provides a _____.

Accepted Answer

A)  non-means-tested monetary benefit
B)  non-means-tested in-kind benefit
C)  means-tested monetary benefit
D)  means-tested in-kind benefit

Question 9

Government programs that are "means-tested" require:

Accepted Answer

A)  all citizens to be eligible for benefits regardless of income.
B)  the program to verify that it accomplishes its purposes through its activities.
C)  recipients to be examined to verify health status.
D)  eligibility to be based on income and sometimes on wealth.

Question 10

Among the reasons for a social safety net is the desire to alleviate income inequality, reduce economic insecurity, and:

Accepted Answer

A)  achieve economic equality for all households.
B)  eliminate poverty.
C)  provide access to health care.
D)  increase economic efficiency.

Question 11

How could a completely equal distribution of income in a country eliminate relative but not absolute poverty?

Accepted Answer

The answer of How could a completely equal distribution of...

Question 12

When there is a high level of intergenerational mobility among the poor in a nation:

Accepted Answer

A)  most of the individuals who are poor remain poor.
B)  most of the poor have incomes that are barely below the poverty line.
C)  the age distribution among the poor is the same as the age distribution in the total population.
D)  children of poor parents do not remain in poverty when they are adults.

Question 13

Social insurance programs do NOT:

Accepted Answer

A)  set individual benefits based on past income.
B)  obtain revenue through program-specific taxes and fees.
C)  cover both rich and poor.
D)  use a means test to qualify people for benefits.

Question 14

If a government program is not means-tested, it:

Accepted Answer

A)  provides benefits for everyone, regardless of their incomes.
B)  helps people who have low incomes.
C)  provides benefits only to households that earn less than the mean household income in a given year.
D)  provides only in-kind benefits.

Question 15

Which statement BEST illustrates social insurance?

Accepted Answer

A)  collision insurance for automobiles
B)  the Supplemental Nutrition Assistance Program (SNAP-formerly the food stamp program) 
C)  housing subsidies provided by the New York City Housing Authority
D)  Social Security

Question 16

There are many costs of the redistribution of income that reduce the efficiency gains of such programs. Summarize at least four costs associated with the redistribution of income.

Accepted Answer

The answer of There are many costs of the redistribution...

Question 17

What is a social safety net?

Accepted Answer

A)  It is the cash-assistance, goods, and services provided by the government to better the lives of those at the bottom of the income distribution.
B)  It is government-provided financial funding to people to compensate for bad outcomes such as unemployment, illness, disability, or outliving their savings.
C)  It is the government assignment of jobs to individuals based on household need and employee education and skills.
D)  It is a system where those with more income tend to pay a higher share of their income in taxes than those with lower incomes.

Question 18

Food stamps (now called the Supplemental Nutrition Assistance Program)  is an example of:

Accepted Answer

A)  a negative income tax.
B)  an in-kind transfer.
C)  a monetary benefit.
D)  unemployment insurance.

Question 19

How could a country have no absolute poverty and yet still have relative poverty?

Accepted Answer

The answer of How could a country have no absolute...

Question 20

Malia and Asi have a household income that is insufficient to pay for both food and shelter, with no funds available for other types of expenses. However, their household income is higher than 75% of the households in their developing nation. Malia feels that they are poor, and Asi feels that they are prosperous. Their feelings are consistent with which views of poverty?

Accepted Answer

A)  Malia focuses on relative poverty, and Asi focuses on extreme poverty.
B)  Malia focuses on extreme poverty, and Asi focuses on absolute poverty.
C)  Malia focuses on absolute poverty, and Asi focuses on relative poverty.
D)  Malia focuses on relative poverty, and Asi focuses on absolute poverty.

Exam 13: Inequality, Social Insurance, and Redistribution

How could a completely equal distribution of income in a country eliminate relative but not absolute poverty?

Correct Answer
verified

Which statement BEST illustrates social insurance?

Correct Answer
verified

What relationship exists between income and well-being in the well-being curve found in the figure?

Correct Answer
verified

Food stamps (now called the Supplemental Nutrition Assistance Program) is an example of:

Correct Answer
verified

There are many costs of the redistribution of income that reduce the efficiency gains of such programs. Summarize at least four costs associated with the redistribution of income.

Correct Answer
verified

When there is a high level of intergenerational mobility among the poor in a nation:

Correct Answer
verified

How could a country have no absolute poverty and yet still have relative poverty?

Correct Answer
verified

Among the reasons for a social safety net is the desire to alleviate income inequality, reduce economic insecurity, and:

Correct Answer
verified

What is a social safety net?

Correct Answer
verified

Which U.S. welfare program is an in-kind benefit that is NOT means-tested?

Correct Answer
verified

Social insurance programs do NOT:

Correct Answer
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Government programs that are "means-tested" require:

Correct Answer
verified

Explain why some economists favor the use of permanent income rather than annual income of a household when examining income inequality in a country.

Correct Answer
verified

Correct Answer
verified

If a government program is not means-tested, it:

Correct Answer
verified

In 2017, _____ of the U.S. population lived in poverty.

Correct Answer
verified

Some safety net programs provide specific goods rather than income or tax breaks. This type of program benefit is known as:

Correct Answer
verified

Which of the following is NOT a means-tested social safety net program in the United States?

Correct Answer
verified

Temporary Assistance for Needy Families provides a _____.

Correct Answer
verified

Government-provided financial funding to households to compensate for bad outcomes such as unemployment, illness, disability, or outliving your savings is known as a:

Correct Answer
verified

Exam 13: Inequality, Social Insurance, and Redistribution

How could a completely equal distribution of income in a country eliminate relative but not absolute poverty?

Correct AnswerverifiedShow Answer

Which statement BEST illustrates social insurance?

Correct AnswerverifiedShow Answer

What relationship exists between income and well-being in the well-being curve found in the figure?

Correct AnswerverifiedShow Answer

Food stamps (now called the Supplemental Nutrition Assistance Program) is an example of:

Correct AnswerverifiedShow Answer

There are many costs of the redistribution of income that reduce the efficiency gains of such programs. Summarize at least four costs associated with the redistribution of income.

Correct AnswerverifiedShow Answer

When there is a high level of intergenerational mobility among the poor in a nation:

Correct AnswerverifiedShow Answer

How could a country have no absolute poverty and yet still have relative poverty?

Correct AnswerverifiedShow Answer

Among the reasons for a social safety net is the desire to alleviate income inequality, reduce economic insecurity, and:

Correct AnswerverifiedShow Answer

What is a social safety net?

Correct AnswerverifiedShow Answer

Which U.S. welfare program is an in-kind benefit that is NOT means-tested?

Correct AnswerverifiedShow Answer

Social insurance programs do NOT:

Correct AnswerverifiedShow Answer

Government programs that are "means-tested" require:

Correct AnswerverifiedShow Answer

Explain why some economists favor the use of permanent income rather than annual income of a household when examining income inequality in a country.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

If a government program is not means-tested, it:

Correct AnswerverifiedShow Answer

In 2017, _____ of the U.S. population lived in poverty.

Correct AnswerverifiedShow Answer

Some safety net programs provide specific goods rather than income or tax breaks. This type of program benefit is known as:

Correct AnswerverifiedShow Answer

Which of the following is NOT a means-tested social safety net program in the United States?

Correct AnswerverifiedShow Answer

Temporary Assistance for Needy Families provides a _____.

Correct AnswerverifiedShow Answer

Government-provided financial funding to households to compensate for bad outcomes such as unemployment, illness, disability, or outliving your savings is known as a:

Correct AnswerverifiedShow Answer

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