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Over the last 50 years,poverty has been:


A) falling,and inequality has been rising.
B) falling,and inequality has been falling as well.
C) rising,and inequality has been rising as well.
D) rising,and inequality has been falling.

E) A) and D)
F) B) and D)

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An effective program used to fight transient poverty is:


A) unemployment insurance.
B) health insurance.
C) job training.
D) All of these are effective at fighting transient poverty.

E) B) and C)
F) A) and D)

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Those who are chronically poor are defined as those who spend:


A) three or more years in poverty.
B) at least two consecutive months within a year in poverty.
C) two or more years in poverty.
D) at least six consecutive months within a year in poverty.

E) None of the above
F) A) and B)

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To understand how poverty,inequality,and discrimination affect the economy,__________ analysis is used,and _________ analysis is used to address whether the government should try to reduce inequality in the name of social justice.


A) positive;normative
B) positive;objective
C) subjective;normative
D) normative;positive

E) C) and D)
F) A) and D)

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Self- reinforcing mechanisms that cause the poor to stay poor are called:


A) poverty traps.
B) social aberrances.
C) social networks.
D) societal traps.

E) A) and B)
F) All of the above

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The basics of the welfare state in the United States started as part of:


A) the New Deal legislation in the 1930s.
B) reparations after WWI in the late 1910s.
C) the Bretton Woods plan after WWII in the 1940s.
D) the Great Recession Recovery and Aid Acts in the 2000s.

E) C) and D)
F) All of the above

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The global pattern of inequality has:


A) been changing in recent decades.
B) remained surprisingly unchanged for the past several decades.
C) changed significantly after each World War.
D) not changed since the Great Depression redefined inequality for the world.

E) A) and D)
F) C) and D)

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The ______ the Lorenz curve is from the line of perfect equality,the _____ is the Gini coefficient,and the __________ income equality exists.


A) farther;higher;less
B) farther;higher;more
C) closer;higher;less
D) closer;lower;less

E) A) and B)
F) B) and D)

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Those who believe that overall economic growth is more important than the distribution of income would say that:


A) if everyone is getting richer,the relative speed of these gains isn't as important.
B) it is fundamentally unjust for some people to have so much when others have so little.
C) if the society is not getting richer,then things can never become more equal.
D) All of these are true.

E) C) and D)
F) B) and D)

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The top quintiles of income earners in every country today:


A) earns disproportionately more than the bottom quintile.
B) earns disproportionately less than they did 100 years ago.
C) earns disproportionately less than the middle quintile.
D) All of these are true.

E) C) and D)
F) B) and C)

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Today black and Hispanic Americans have poverty rates:


A) twice as high as white Americans.
B) three times as high as white Americans.
C) half as high as white Americans.
D) four times as high as white Americans.

E) A) and B)
F) A) and C)

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In 2008,the number of people living in the world on less than $1.25 a day was:


A) just over a fifth of the world's population.
B) roughly a third of the world's population.
C) just over a quarter of the world's population.
D) just under 10 percent of the world's population.

E) A) and D)
F) B) and C)

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In 2011,the Census Bureau introduced an alternate poverty measure that is based on:


A) the price of food,and adjusts for geographic differences in the cost of living.
B) the prices of food,clothing,shelter,and utilities,and adjusts for geographic differences in the cost of living.
C) the price of housing,and adjusts for geographic differences in the cost of living.
D) the average income of the lowest quartile of income earners.

E) B) and D)
F) B) and C)

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A standard way to measure income mobility is to compare:


A) people's income to their parents' income.
B) people's income at the beginning of their work-life to their income when they retire.
C) the education level of people to that of their parents'.
D) None of these is a standard way to measure income mobility.

E) A) and B)
F) B) and C)

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According to economist Emmanuel Saez,between 1993 and 2010,the incomes of the richest 1 percent grew by ________,and the other 99 percent grew by ________ on average.


A) 58 percent;6.4 percent
B) 58 percent;64 percent
C) 5.8 percent;6.4 percent
D) 5.8 percent;64 percent

E) B) and D)
F) A) and D)

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Social insurance programs are designed to:


A) protect against the temporary hard times that can lead to transient poverty.
B) keep those in chronic poverty fed,clothed,and housed.
C) aid those communities that become impoverished.
D) None of these is true.

E) A) and C)
F) B) and C)

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Between 1960 and 1995,Social Security benefits:


A) increased,helping reduce the poverty rate among the elderly.
B) increased,which increased the poverty rate among the elderly.
C) decreased,helping reduce the poverty rate among the elderly.
D) decreased,which increased the poverty rate among the elderly.

E) A) and D)
F) B) and C)

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One of the factors that causes differences in inequality across countries is:


A) the extent to which governments redistribute income through the public budget.
B) the amount of jobs that are available in the country.
C) the labor force participation rate within countries.
D) how many income earners there are relative to total population.

E) None of the above
F) C) and D)

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An absolute poverty line is usually set based on:


A) the cost of certain essential goods.
B) a certain percentage below the average income in a society.
C) the lowest quartile of income earners in a society.
D) the lowest 1 percent of all income earners in a society.

E) A) and B)
F) All of the above

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Inequality within countries has been __________,and inequality between countries has been _________ in recent decades.


A) increasing;decreasing
B) increasing;increasing
C) decreasing;increasing
D) decreasing;decreasing

E) All of the above
F) B) and D)

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