Multiple Choice Quiz


1	The national measures of poverty look at
		A)	income relative to family size.
		B)	income but without looking at family size.
		C)	wealth and income relative to family size.
		D)	wealth and income but without looking at family size.


2	The poverty line is adjusted year-to-year using
		A)	the GDP deflator.
		B)	an annual survey.
		C)	the Consumer Price Index.
		D)	the Poor Consumer Price Index.


3	If the poverty line in one year for a family of 2 is $10,000 then the poverty line for a family of four is likely to be
		A)	less than $10,000.
		B)	between $10,000 and $20,000.
		C)	exactly $20,000.
		D)	more than $20,000.


4	If you wanted to measure how much money would be needed to "solve" the poverty problem by giving poor people enough money that they would no longer be under the poverty line then you would use the
		A)	poverty rate.
		B)	poverty line.
		C)	poverty level.
		D)	poverty gap.


5	The poverty rate for high school dropouts is ________ than for people who graduated high school but did not attend college
		A)	about the same
		B)	less
		C)	somewhat (2 percentage points) higher
		D)	dramatically (2.5 times) higher


6	Which of the following would not be counted as pertinent with regard to whether a family was in poverty
		A)	their wealth.
		B)	the value of the Medicaid they receive.
		C)	their welfare checks (that they can cash).
		D)	a) and b)


7	Because child-care costs are an important part of a single parent's expenses the poverty line as it is constructed ______ the level of income necessary to be out of poverty
		A)	understates
		B)	overstates
		C)	gets exactly right
		D)	understates for some and overstates for others


8	Economists call the programs (such as Medicaid, WIC and Food Stamps) that provide the poor with goods and services rather than cash
		A)	in-stuff.
		B)	in-kind.
		C)	counter-cash.
		D)	substitute services.


9	It is generally true that the amount spent on the poor in welfare checks and other services _____ the poverty gap
		A)	greatly exceeds (by more than 5 times)
		B)	barely exceeds (by less than 10%)
		C)	is about equal to
		D)	is less than


10	When presented with the argument that because you get more government services when you are poor and have more children this causes people to have more children, economists
		A)	agree that the potential is there but the evidence suggests it doesn't happen.
		B)	agree and have evidence to suggest it happens precisely that way.
		C)	disagree because the incentive is just the opposite.
		D)	have no opinion.

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