MITBch17

MITBch17 - CHAPTER 17 1POVERTY, INEQUALITY, AND...

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C HAPTER 17 1P OVERTY , I NEQUALITY , AND D ISCRIMINATION TRUE-FALSE QUESTIONS ISSUE: ENDING WELFARE AS WE KNOW IT 1. Increasing equality of income always increases economic efficiency. ANSWER: F, M, A 2. There is a trade-off between income equality and economic efficiency. ANSWER: T, E, A 3. There is usually a trade-off between income equality and economic efficiency. ANSWER: T, E, A 4. By alleviating poverty, welfare programs enhance economic efficiency. ANSWER: F, E, A 5. The Temporary Assistance to Needy Families (TANF) program places time limits on a family’s  eligibility for welfare benefits. ANSWER: T, E, R 6. The federal government guarantees families a minimum income indefinitely. ANSWER: F, E, R THE FACTS: POVERTY 7. In 1962, Michael Harrington argued in  The Other America  that there was chronic, severe poverty in  America. ANSWER: T, E, R 8. The “War on Poverty” was declared by President Ronald Reagan in 1982. ANSWER: F, M, R 9. By 2000, the poverty line for a typical family of four stood at about $27,500. ANSWER: F, M, R 10. In 2000, the poverty line for a family of four was about $17,500. ANSWER: T, E, R 11. In the United States, the incidence of poverty has declined since the 1970s. ANSWER: F, E, R 12. Poverty is defined in two ways: the absolute concept of poverty and the relative concept of poverty. ANSWER: T, E, R 251
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252 Chapter 17/Poverty, Inequality, and Discrimination 13. The concept of  absolute poverty  states that anyone who falls too far behind the average income  should be considered poor. ANSWER: F, M, R 14. Falling below a minimum standard of living illustrates the concept of  absolute poverty . ANSWER: T, M, R 15. The relative concept of poverty is based on how far behind average income a particular family gets. ANSWER: T, E, R 16. The relative concept of poverty means that poverty probably will never be eliminated. ANSWER: T, E, A 17. The concept of poverty is culturally determined, and hence people are defined as “poor” in relation  to others. ANSWERS: T, M, R THE FACTS: INEQUALITY 18. Large income differences will be eradicated if the market mechanism is working well. ANSWER: F, M, A 19. A market system tends to create inequality. ANSWER: T, M, R 20. In 2000, the median income of U.S. families was about $86,000. ANSWER: F, E, R 21. The lowest-income fifth of the population ordinarily earns about 20 percent of the income in the  United States. ANSWER: F, E, R
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This note was uploaded on 01/26/2011 for the course ECON 160 taught by Professor Baim during the Spring '98 term at UCLA.

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MITBch17 - CHAPTER 17 1POVERTY, INEQUALITY, AND...

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