Question 1

The goal of utilitarians is to

Accepted Answer

A)   apply the logic of individual decision making to questions concerning morality and public policy.
B)   measure happiness and satisfaction.
C)   redistribute income based on the assumption of increasing marginal utility.
D)   All of the above are correct.E) None of the above
F) All of the above

Question 2

The goal of libertarianism is to

Accepted Answer

A)   redistribute income based on the assumption of diminishing marginal utility.
B)   redistribute income in order to maximize the well-being of the worst-off person in society.
C)   punish crimes and enforce voluntary agreements but not to redistribute income.
D)   measure happiness and satisfaction.E) C) and D)
F) A) and B)

Question 3

Suppose the government used the following formula to compute a family's tax liability:
Taxes owed = 28% of income - $8,000. How much would a family that earned $18,000 owe?

Accepted Answer

The answer of Suppose the government used the following formula...

Question 4

Which of the following is most likely to occur when the government enacts policies to make the distribution of income more equal?

Accepted Answer

A)   a more efficient allocation of resources
B)   a distortion of incentives
C)   unchanged behavior
D)   All of the above are correct.E) B) and D)
F) B) and C)

Question 5

Figure 20-3 
-Refer to Figure 20-3. In 1968, the percent of children under age 18 in poverty is

Accepted Answer

A)   higher than both the percentage of adults aged 18 to 64 and the percentage of elderly aged 65 and over in poverty.
B)   higher than the percentage of adults aged 18 to 64 but is lower than the percentage of elderly aged 65 and over in poverty.
C)   lower than both the percentage of adults aged 18 to 64 and the percentage of elderly aged 65 and over in poverty.
D)   lower than the percentage of adults aged 18 to 64 but is higher than the percentage of elderly aged 65 and over in poverty.E) A) and B)
F) A) and C)

Question 6

The federal government sets the poverty line at roughly

Accepted Answer

A)   five times the cost of providing an adequate diet.
B)   four times the cost of providing an adequate diet.
C)   three times the cost of providing an adequate diet.
D)   two times the cost of providing an adequate diet.E) A) and B)
F) None of the above

Question 7

An advantage of a negative income tax is that it does not encourage the breakup of families because the only criterion for assistance is family income.

Accepted Answer

A) True 
 B)False

Question 8

Scenario 20-1
The government is proposing switching from a progressive tax system in which families pay 15% of the first $50,000 earned, 25% of the next $50,000 earned, and 35% of any income over $100,000 to a tax system in which every family pays 20% of their income less $20,000.
-Refer to Scenario 20-1. Which group would be most in favor of the switch from the current progressive tax policy to the new policy?

Accepted Answer

A)   Utilitarians, because they want to maximize the utility to the worst-off person in society
B)   Liberals, because of the maximin criterion
C)   Libertarians, because they believe in diminishing marginal utility
D)   All three groups would be equally in favor of the switch.E) None of the above
F) A) and B)

Question 9

Table 20-11
Poverty Thresholds in 2011, 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 20-11. What is the poverty line for a family with one 68-year-old adult and one child?

Accepted Answer

A)   $10,788
B)   $15,446
C)   $15,504
D)   $18,106E) B) and C)
F) B) and D)

Question 10

Table 20-13
Distribution of Income in Imagination 
-Refer to Table 20-13. The Human Development Report computes a measure of inequality by dividing the income of the richest 10% of the population by the income of the poorest 10%. If the value for this measure of inequality in the US is 15.9 and the value for India is 8.6, how does Imagination compare to these two nations?

Accepted Answer

Imagination has a mo...

Question 11

Figure 20-3 
-Refer to Figure 20-3. Which of the following is consistent with the data reported in the figure?

Accepted Answer

A)   Policies to reduce elderly (65 years and older)  poverty rates since 1959 seem to have been effective.
B)   The age group suffering the highest poverty rate in recent years has been 18 to 64 year olds.
C)   Policies to reduce youth (under 18 years)  poverty rates since 1959 seem to have been effective.
D)   All of the above are correct.E) All of the above
F) A) and B)

Question 12

A common criticism of welfare programs is that they

Accepted Answer

A)   create self-reliant individuals.
B)   encourage strong family values.
C)   encourage illegitimate births.
D)   have increasing benefits over time, in real terms.E) A) and B)
F) A) and C)

Question 13

"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?

Accepted Answer

A)   utilitarianism
B)   liberalism
C)   libertarianism
D)   republicanismE) C) and D)
F) B) and D)

Question 14

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

Accepted Answer

A)   Utilitarianism suggests that government policies should strive to maximize the sum of all three individuals' utility.
B)   Liberalism suggests that government policies should strive to maximize the sum of Larry's utility and Nina's utility.
C)   Libertarianism suggests that government policies should strive to make Nina better off at the cost of Larry and Margaret.
D)   Utilitarianism suggests that the government policies should strive to make Nina better off than Margaret.E) A) and D)
F) None of the above

Question 15

The regular pattern of income variation over a person's life is called the .

Accepted Answer

The answer of The regular pattern of income variation over...

Question 16

The Smith family owns an apple orchard in Illinois. The Jones family owns an apple orchard in Wisconsin. A late frost destroys half of the Smith family's harvest for one year. For the Jones family, their

Accepted Answer

A)   transitory income for the year of the frost likely exceeds their permanent income.
B)   permanent income likely exceeds their transitory income for the year of the frost.
C)   permanent income will be more affected by the frost than their transitory income.
D)   Both a and c are correct.E) A) and B)
F) A) and C)

Question 17

Scenario 20-4
Suppose the government implemented a negative income tax and used the following formula to compute a family's tax liability:
Taxes owed = (1/5 of income)  - $15,000
-Refer to Scenario 20-4. Below what level of income would families start to receive a subsidy from this negative income tax?

Accepted Answer

A)   $5,000
B)   $15,000
C)   $50,000
D)   $75,000E) B) and D)
F) B) and C)

Question 18

Utilitarians believe that the proper goal of the government is to maximize the sum of the utilities of everyone in society.

Accepted Answer

A) True 
 B)False

Question 19

In 2011, the poverty rate in the United States was

Accepted Answer

A)   5.9 percent.
B)   11.1 percent.
C)   15.0 percent.
D)   22.4 percent.E) A) and C)
F) A) and B)

Question 20

Based on U.S. data for 2011, the poverty rate is the highest for which group of people?

Accepted Answer

A)   children
B)   married couples
C)   female-headed households, no spouse present
D)   the elderlyE) A) and D)
F) All of the above

Exam 20: Income Inequality and Poverty

Utilitarians believe that the proper goal of the government is to maximize the sum of the utilities of everyone in society.

Correct Answer
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An advantage of a negative income tax is that it does not encourage the breakup of families because the only criterion for assistance is family income.

Correct Answer
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The goal of libertarianism is to

Correct Answer
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Correct Answer
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Figure 20-3 -Refer to Figure 20-3. Which of the following is consistent with the data reported in the figure?

Correct Answer
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The federal government sets the poverty line at roughly

Correct Answer
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Which of the following is most likely to occur when the government enacts policies to make the distribution of income more equal?

Correct Answer
verified

The goal of utilitarians is to

Correct Answer
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Suppose the government used the following formula to compute a family's tax liability: Taxes owed = 28% of income - $8,000. How much would a family that earned $18,000 owe?

Correct Answer
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Correct Answer
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Correct Answer
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Imagination has a mo...
View Answer

A common criticism of welfare programs is that they

Correct Answer
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The regular pattern of income variation over a person's life is called the .

Correct Answer
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"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?

Correct Answer
verified

Figure 20-3 -Refer to Figure 20-3. In 1968, the percent of children under age 18 in poverty is

Correct Answer
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In 2011, the poverty rate in the United States was

Correct Answer
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Table 20-11 Poverty Thresholds in 2011, 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 20-11. What is the poverty line for a family with one 68-year-old adult and one child?

Correct Answer
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Based on U.S. data for 2011, the poverty rate is the highest for which group of people?

Correct Answer
verified

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

Correct Answer
verified

The Smith family owns an apple orchard in Illinois. The Jones family owns an apple orchard in Wisconsin. A late frost destroys half of the Smith family's harvest for one year. For the Jones family, their

Correct Answer
verified

Exam 20: Income Inequality and Poverty

Utilitarians believe that the proper goal of the government is to maximize the sum of the utilities of everyone in society.

Correct AnswerverifiedShow Answer

An advantage of a negative income tax is that it does not encourage the breakup of families because the only criterion for assistance is family income.

Correct AnswerverifiedShow Answer

The goal of libertarianism is to

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Figure 20-3 -Refer to Figure 20-3. Which of the following is consistent with the data reported in the figure?

Correct AnswerverifiedShow Answer

The federal government sets the poverty line at roughly

Correct AnswerverifiedShow Answer

Which of the following is most likely to occur when the government enacts policies to make the distribution of income more equal?

Correct AnswerverifiedShow Answer

The goal of utilitarians is to

Correct AnswerverifiedShow Answer

Suppose the government used the following formula to compute a family's tax liability: Taxes owed = 28% of income - $8,000. How much would a family that earned $18,000 owe?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedImagination has a mo...View AnswerShow Answer

A common criticism of welfare programs is that they

Correct AnswerverifiedShow Answer

The regular pattern of income variation over a person's life is called the .

Correct AnswerverifiedShow Answer

"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?

Correct AnswerverifiedShow Answer

Figure 20-3 -Refer to Figure 20-3. In 1968, the percent of children under age 18 in poverty is

Correct AnswerverifiedShow Answer

In 2011, the poverty rate in the United States was

Correct AnswerverifiedShow Answer

Table 20-11 Poverty Thresholds in 2011, 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 20-11. What is the poverty line for a family with one 68-year-old adult and one child?

Correct AnswerverifiedShow Answer

Based on U.S. data for 2011, the poverty rate is the highest for which group of people?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The Smith family owns an apple orchard in Illinois. The Jones family owns an apple orchard in Wisconsin. A late frost destroys half of the Smith family's harvest for one year. For the Jones family, their

Correct AnswerverifiedShow Answer

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Imagination has a mo...
View Answer

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