Question_Doc13_15Dec_6th

Question # 00005664 Posted By: smartwriter Updated on: 12/22/2013 02:00 PM Due on: 12/31/2013
Subject Business Topic General Business Tutorials:
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11)The threshold income level originally used to determine official poverty statistics was based

on

A) an income three times the amount of money needed to purchase a nutritionally adequate diet. B) standards provided by the United Nations based on studies done in poor countries around the world.

C) the highest income of the lowest one-fifth of families in the country. D) a per capita income of $1,000 in 1958 prices.

12)Which of the following CANNOT be eliminated in a growing economy such as the U.S. economy?

A) absolute poverty B) relative poverty

C) both absolute and relative poverty

D) Neither absolute nor relative poverty can be eliminated.

13)When poverty is defined by an absolute real income level, what will happen to the poverty rate if income per capita in a country continues to grow?

A) The poverty rate will increase forever. B) The poverty rate will eventually be zero.

C) The poverty rate will increase and then decrease. D) The poverty rate will never change.

14)When poverty is defined by an relative real income level, what will happen to the poverty rate if the distribution of income is not perfectly equal?

A) The poverty rate will increase forever. B) The poverty rate will eventually be zero.

C) The poverty rate will always remain constant. D) The poverty rate will change, but always exist.

15) Relative poverty

A)has been eliminated in the United States.

B)will always be with us.

C)has never existed in the United States.

D)can be eliminated in the next 20 years.

16) Relative poverty refers to

A)how a family's income compares to the incomes of those around them.

B)poverty levels at a stated income cutoff.

C)the number of poor in one state relative to another.

D)None of the above.

17)If we include cash benefits and in-kind benefits available to low-income people, the share of the U.S. population in poverty

A) drops dramatically. B) increases somewhat. C) increases dramatically. D) does not change.

18)If an individual receives in-kind transfers from the government in the form of food stamps, public housing, and so on, his money income is

A) less than his total income. B) greater than his total income. C) the same as his total income.

D) equal to his in-kind income plus his wages.

19)Which of the following statements about the Social Security (OASDI) program is FALSE? A) Benefits are paid to individuals who would be financially secure in their absence.

B) Benefits are based on need.

C) Benefits are an intergenerational transfer program from those who work to those who don't work.

D) When an insured worker dies, benefits continue for widows or other dependents.

20)Which of the following statements is an accurate statement about the Social Security (OASDI) program?

A) The program is financed by voluntary contributions. B) Only 50 percent of workers are covered by OASDI. C) Benefits are based on financial need.

D) The program transfers income from those who work to those who do not work.

21)Which of the following statements about Social Security is FALSE?

A)Social Security is an intergenerational transfer where the benefits paid are only roughly related to past earnings.

B)Over 90 percent of all employed workers in the United States are covered by Social Security.

C)Benefit payments under Social Security are based on the recipient's need.

D)Benefit payments under Social Security redistribute income from young to old.

22)Which of the following statements about the Supplemental Security Income (SSI) program is FALSE?

A) It is designed to establish nationwide minimum incomes for the aged, the blind, and the disabled

B) Benefits are based on need.

C) Recipients who receive benefit payments under Social Security are also eligible for SSI. D) It covers children and individuals with mental disabilities, including drug addicts and alcoholics.

23)Which of the following statements about the Earned Income Tax Credit Program (EITC) program is FALSE?

A) On net the EITC discourages work by low- or moderate- income earners more than it rewards work.

B) It provides rebates of Social Security taxes to low-income workers.

C) Recipients who receive benefit payments under Social Security are also eligible for SSI. D) It is the largest poverty reduction program in the U.S..

24)All of the following are social insurance programs designed to attack poverty EXCEPT

A)Social Security.

B)temporary assistance to needy families.

C)food stamps.

D)tuition assistance.

25)Which of the following income maintenance programs is designed to establish nationwide minimum incomes for the aged, the blind, and the disabled?

A) The Old-Age Survivors' and Disability Insurance (OASDI) program B) The Supplemental Security Income (SSI) program

C) The Temporary Assistance to Needy Families (TANF) program D) The food stamps program

26)Under the Social Security program currently in existence,

A)benefits are based on need.

B)benefits are determined by whether or not one contributed to the system.

C)benefits are provided to everyone who contributed to the system EXCEPT those under private retirement programs that provide an annual income in excess of $13,500.

D)benefits are guaranteed to be no lower for future retirees than for current retirees.

27)The funds paid to the government today for Social Security taxes are A) invested to provide for the future benefits of the taxpayers.

B) saved to ensure sufficient resources in the future to pay the benefits of workers today when they reach retirement age.

C) used by the government to purchase goods and services that will enhance the future productivity of business in the country.

D) used to pay the benefits of those who are currently retired.

28)The purpose of the Supplemental Security Income program is

A)to provide a minimum income for all households with children.

B)to provide a guaranteed minimum income for all Americans.

C)to provide a minimum income for the aged, blind, and the disabled.

D)to supplement Social Security for the elderly with medical problems.

29)The purpose of the Temporary Assistance to Needy Families program is A) to provide rebates of Social Security taxes to low-income workers.

B) to provide cash assistance and supportive services to assist the family, helping them achieve economic self-sufficiency.

C) to provide a minimum income for the aged, blind, and the disabled. D) to supplement Social Security for the elderly with medical problems.

30)Current income maintenance programs

A)often provide benefits to people who are working and earning substantially more than the poverty level.

B)reduce the incentive of recipients to work.

C)have safeguards to ensure that recipients work whenever physically able.

D)fail to make the income distribution more equal.

31)The purpose of the Earned Income Tax Credit Program (EITC) is to A) provide rebates of Social Security taxes to low-income workers.

B) encourage low- and moderate-income workers to take second jobs to increase their income. C) provide in-kind services such as food stamps and public housing to those individuals who have poor credit.

D) give tax credits to low-income individuals who do volunteer work in their communities.

32)The official number of poor in the United States

A)is higher today than at any other time in our history.

B)has risen steadily since 1981.

C)was lowest in the late 1960s.

D)is lowest today.

33)Originally, the threshold income level used to determine official poverty statistics was based

on

A) a per capita income of $3000 in 1955 prices.

B) the lowest income of the second quartile of families in the country.

C) an income three times greater than necessary to purchase a nutritionally adequate diet. D) figures developed by a committee in the American Economic Association.

34)Which of the following statements is TRUE?

A)A growing economy should see a decline in relative poverty but not in absolute poverty.

B)A growing economy should see a decline in absolute poverty but not in relative poverty.

C)A growing economy should see a decline in both absolute and relative poverty.

D)A growing economy is usually unrelated to changes in either absolute or relative poverty.

35) Which of the following statements is FALSE?

A)The official absolute poverty level in the United States is far above the average income of many countries in the world.

B)In a relative sense, the problem of poverty will always exist.

C)An equal distribution of income would eliminate relative poverty.

D)An equal distribution of income would eliminate absolute poverty.

36) Many argue the poor are getting poorer, at least in a relative sense. Evidence that contradicts this is that

A)household income of the lowest twenty percent of households relative to the highest twenty percent of households has fallen over the last thirty years.

B)the official poverty level of income has increased over the years.

C)household spending of the lowest twenty percent of households relative to the highest twenty percent of households has held constant over the last thirty years.

D)the pretax distribution of income is more equal than the after-tax distribution of income.

37)The official poverty level is based on pretax income including cash. Which of the following statements is correct regarding this official specification of poverty?

A) This is a good definition of poverty since it is made up of the income from productive resources.

B) This is not a good definition of poverty because our tax structure consists of different tax brackets based on income.

C) This is not a good definition of poverty because it does not include in-kind subsidies. D) This is a good definition of poverty because it is easy to measure.

38)Social Security is

A)an insurance program operated by the federal government.

B)a retirement program that invests the person's contributions into interest-earning financial assets so the proceeds can fund the person's retirement.

C)a social insurance program that guarantees that an elderly person will never fall below the poverty level.

D)an intergenerational transfer program that only vaguely relates to past earnings.

39)The income transfers that a person receives from Social Security A) is not related to the amount that they have contributed.

B) is a yearly proportion of the amount contributed.

C) is the same for everyone whether they contributed to the system or not. D) depends entirely on the amount received from private pensions.

40)Which program provides assistance to the aged, blind and disabled? A) Social Security Program

B) Supplemental Security Income program C) TANF

D) Earned Income Tax Credit

41)The government program that provides aid to families in need is A) TANF.

B) Social Security program.

C) Supplemental Security Income program. D) Earned Income Tax Credit.

42)Which income maintenance program was started to support the nation's farmers? A) Supplemental Security Income

B) Food Stamps

C) Earned Income Tax Credit Program D) AFDC

43)The program that was created to provide rebates of Social Security taxes to low-incomeworkers is

A) Supplemental Security Income. B) Food Stamps.

C) Earned Income Tax Credit Program. D) TANF.

44)Since the War on Poverty was started in 1965, the United States has spent more than $12 trillion on income maintenance programs. The effect has been to

A) reduce poverty levels substantially. B) reduce poverty levels moderately.

C) have virtually no effect on poverty levels. D) increase poverty substantially.

45)In an attempt to reduce the poverty rate, there has recently been a movement away from income maintenance programs to

A) Supplemental Security Income programs. B) reducing the age a person can retire at. C) encouraging people to get jobs.

D) incorporating the Lorenz policy in decisions.

46)The USDA threshold income level was originally based on the cost of

A)housing.

B)transportation.

C)basic clothing.

D)a nutritionally adequate food plan.

47)Which of the following groups of U.S. residents would likely qualify for SSI benefits? A) college students

B) incarcerated murderers C) the disabled

D) new federal retirees

48)The ________ program was created in 1975 to provide rebates of Social Security taxes tolow-income workers.

A) food stamp B) SSI

C) TANF D) EITC

49)Which of the following statements is FALSE regarding the definition of poverty? A) A threshold income level is used to define poverty.

B) Adjustments to the poverty level are made on the basis of changes in the Consumer Price Index.

C) Real incomes in the United States have been growing at a compounded annual rate of almost 2 percent per capita.

D) Poverty cannot be defined in relative terms.

50)In a growing economy, it is possible to eliminate

A)absolute poverty.

B)relative poverty.

C)both absolute and relative poverty.

D)either absolute nor relative poverty.

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