CHAPTER 20 - Chapter20 IncomeInequality andPoverty 1...

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Chapter 20 Income Inequality  and Poverty 1. The percentage of families with incomes below the poverty  line a. is defined  as the lowest 10 percent of households  in terms of incomes in the United  States. b. is known  as the poverty rate. c. is known  as the unemployment  rate. d. rises as the general income level rises. ANSWER: b is known  as the poverty rate. SECTION: 1 OBJECTIVE: 1   2. The income level below which families are said to be poor is known  as the a. income maintenance threshold. b. poverty line. c. bottom  quintile of the income distribution. d. minimum  wage. ANSWER: b poverty line. SECTION: 1 OBJECTIVE: 1 3. If the U.S. government  determines that the cost of feeding an urban  family of six is $6,000 per year,  then the official poverty line for a family of that type is a. $6,000. b. $12,000. c. $18,000. d. $36,000. ANSWER: c $18,000. SECTION: 1 OBJECTIVE: 1 4. What two main factors have raised  U.S. income inequality recently? a. technical change and  increased  labor union  membership b. increased  labor union  membership  and  higher tax rates c. technical change and  expanded  international trade d. lower tax rates and  expanded  international trade ANSWER: c technical change and  expanded  international trade SECTION: 1 OBJECTIVE: 1 5. About  what  percent of all U.S. income goes to the top fifth of the income distribution? a. 10%. b. 25% c. 47% d. 63% ANSWER: c 47% SECTION: 1 OBJECTIVE: 1 117
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118    Chapter 20/Income Inequality and Poverty 6. About  what  percent of all U.S. income goes to the bottom  fifth of the income distribution? a. 10% b. 8% c. 6% d. 4% ANSWER: d 4% SECTION: 1 OBJECTIVE: 1 7. In richer countries, the distribution  of income tends to be __________ within  poorer countries. a. much less equal than b. slightly less equal than c. distributed  about  the same as d. more equal than ANSWER: d more equal than SECTION: 1 OBJECTIVE: 1 8. Over the past 20 years, wages for college graduates __________ and  wages for workers with less  education  __________. a.
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This note was uploaded on 10/22/2010 for the course BUSINESS BAIU09 taught by Professor Mr.ken during the Spring '10 term at American InterContinental University Dunwoody.

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CHAPTER 20 - Chapter20 IncomeInequality andPoverty 1...

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