Chapter 31 - Income Distribution and Poverty

1		The top quintile of household income in the United States is from about ____________ up.
			A)	$50,000
			B)	$75,000
			C)	$100,000
			D)	$125,000
			E)	$150,000
2		Statement I. The United States has a very equal distribution of income. Statement II. The Lorenz curve plots a nation's income distribution on a graph.
			A)	Statement I is true and statement II is false.
			B)	Statement II is true and statement I is false.
			C)	Both statements are true.
			D)	Both statements are false.
3		At the end of the 1990s income distribution in the U.S. was ______ it was in the 1960s.
			A)	less equal than
			B)	about as equal as
			C)	more equal than
4		Social Security benefits constitute more than ______ of all government transfer payments.
			A)	one-quarter
			B)	one-half
			C)	two-thirds
			D)	nine-tenths
5		Compared to several European countries, the United States is _______________ economically mobile society.
			A)	a more
			B)	an equally
			C)	a less
6		A family of four with an income below _________ is living below the poverty line.
			A)	$7,000
			B)	$12,000
			C)	$17,000
			D)	$22,000
			E)	$27,000
7		Our poverty rate has been falling steadily since
			A)	1987
			B)	1990
			C)	1993
			D)	1996
			E)	1999
8		The population group with the highest poverty rate is
			A)	whites.
			B)	blacks.
			C)	Hispanics.
			D)	Native Americans.
9		Which is the most accurate statement?
			A)	Over five million Americans are homeless.
			B)	Most people living below the poverty line are black.
			C)	One child in five is a member of a family that is poor.
			D)	Nearly 20 percent of all Americans live below the poverty line.
10		Statement I. No one theory of poverty can explain more why more than half the poor are poor. Statement II. Most conservatives and liberals agree about the root causes of poverty.
			A)	Statement I is true and statement II is false.
			B)	Statement II is true and statement I is false.
			C)	Both statements are true.
			D)	Both statements are false.
11		The antipoverty programs have increased poverty. This view is held by
			A)	William Julius Wilson.
			B)	Charles Murray.
			C)	Frances Fox Pivan.
			D)	William Darity.
			E)	Samuel Myers.
12		Under the negative income tax, everyone earning below a certain income would
			A)	be taxed at a low rate.
			B)	would receive a fixed subsidy.
			C)	would receive a subsidy that would decline as earned income rose.
			D)	would receive a subsidy that was a certain percentage of earned income.
13		The main liberal program to alleviate poverty would be
			A)	a large private jobs program.
			B)	a large government jobs program.
			C)	a substantial tax cut.
			D)	abolition of welfare payments.
14		The largest federal policy targeted solely to the poor (in terms of dollars) is
			A)	public assistance.
			B)	Social security.
			C)	food stamps.
			D)	the earned income tax credit (EITC).
15		Since 1994, the number of people receiving public assistance has
			A)	doubled.
			B)	increased slightly.
			C)	decreased slightly.
			D)	been cut in half.