Econ chapter 21 – Flashcards with Answers
Unlock all answers in this set
Unlock answersquestion
In 2011, the average income for households in the United States was about:
answer
$69,821.
question
The lowest quintile of households in the income distribution receives about:
answer
3.2 percent of the total income.
question
Census data indicate that, as of 2011, the top fifth of all households receive about ________ times as much income as the bottom fifth.
answer
sixteen
question
Income mobility:
answer
is the movement of individuals and households from one income quintile to another over time.
question
Standard Census data on the distribution of income:
answer
are before taxes in that they do not account for personal income and payroll taxes.
question
Which of the following is correct?
answer
Income is a flow and wealth is a stock concept.
question
Since 1980 the difference between the earnings of college graduates and high school graduates has:
answer
increased, thereby increasing income inequality.
question
Which of the following demographic groups does not bear a disproportionate burden of poverty?
answer
Persons 65 or over.
question
The poverty rate for African Americans is:
answer
greater than for any other racial or ethnic group.
question
Which of the following is not a social insurance program?
answer
TANF (Temporary Assistance for Needy Families).
question
Social Security is financed:
answer
by payroll taxes on employees and employers.
question
Medicaid:
answer
helps finance medical expenses for those participating in the TANF and Supplemental Security Income programs.
question
Which of the following provides public assistance to those who are blind and otherwise disabled?
answer
Supplemental Security Income (SSI).
question
The earned-income tax credit:
answer
provides a cash payment to low-income working families if their tax credit exceeds their tax liability.
question
The TANF program:
answer
limits total lifetime welfare benefits to 5 years and requires able-bodied adults to work after receiving benefits for 2 years.
question
By December 2009, the recession that began in December 2007:
answer
raised the number of TANF recipients from 3.9 million to about 4.4 million.
question
For an employer biased against African Americans, the discrimination coefficient d:
answer
measures the amount an employer is willing to pay to hire a white over hiring an African-American worker.
question
The crowding model of discrimination suggests that:
answer
women and selected minorities are systematically excluded from high-paying occupations and crowded into low-paying occupations, decreasing their wages and reducing domestic output.
question
(Consider This) According to The Economist magazine, growing income inequality is less of a concern because:
answer
the poor have increasingly better access to goods and services once only available to the rich.
question
(Last Word) In 2010, the wealthiest 1 percent of U.S. households held about ____ percent of U.S. household wealth.
answer
35.
