Chapter 10: Poverty (Questions)

What do policy experts mean by the terms perverse incentives and unintended consequences? a. Poverty is both cause and effect. b. Poverty is a condition that acts as a proxy for an underlying social disease. c. Poverty endeavors are a waste of money. d. Aiding the poor creates more problems than it solves.

Aiding the poor creates more problems than it solves.

Attempts at establishing an absolute poverty measure can be traced to: a. Roman times. b. England beginning in the late 1700s. c. New York at the time of European immigration in the early 1900s. d. the War on Poverty in the 1930s Depression.

England beginning in the late 1700s

In the 1970s Edward Banfield wrote The Unheavenly City and asserted that people in poverty were not future-oriented. What was wrong with this assertion? a. He was upper class and was not culturally relativistic. b. He did no field research. c. He looked only at Mexican poor. d. He looked at only historical data, not present-day statistics.

He did no field research.

What was one of the major outcomes with Clinton's 1996 Personal Responsibility and Work Opportunity Reconciliation Act? a. It forced the government to provide federally funded day care for working mothers. b. It created more highly-educated individuals, therefore eliminating people available for low-wage jobs. c. It caused children as young as age 10 to have to join the workforce. d. It limited the amount of time one could receive benefits.

It limited the amount of time one could receive benefits.

Which of the following is NOT one of the actions the government took as a result of the Gautreaux v. Chicago Housing Authority suit? a. It ended the years-long waiting list for Section 8 housing. b. It gave families counseling and rental referral services. c. It provided families with free housing in the private market. d. It moved families in public housing to more affluent suburbs.

It provided families with free housing in the private market.

Status consumption has been discussed earlier in the text in the chapter on stratification (Chapter 7). How does this affect poverty? a. It shows us what we need to work toward, thus making us work even harder at getting ahead. b. It, along with the media, gives us goals that are unreachable for most of us, thus plummeting us into debt. c. It shows us what absolute poverty is, when we compare ourselves to people like Paris Hilton. d. It reduces poverty by giving people more jobs in producing the goods we all want.

It, along with the media, gives us goals that are unreachable for most of us, thus plummeting us into debt.

Which U.S. president was responsible for the "War on Poverty" and programs like Head Start and Job Corps? a. Woodrow Wilson b. Lyndon Johnson c. John F. Kennedy d. George W. Bush

Lyndon Johnson

What population was Oscar Lewis studying when he coined the term "culture of poverty"? a. blacks b. single mothers on welfare c. underclass d. Mexicans

Mexicans

Susan Mayer wrote What Money Can't Buy: Family Income and Children's Life Chances. Her findings were similar to what Marlin Card was suggesting would have helped his chances in life. Which of the following might have addressed this issue? a. Parenting classes b. Higher paying jobs c. Higher welfare payments d. Desegregation of schools

Parenting classes

What was the problem with the Gautreaux Assisted Housing Program? a. There weren't enough houses for all the families. b. It produced no improvement or changes. c. Families brought destructive behaviors from the ghetto to the new neighborhood. d. Participants were self-selected.

Participants were self-selected.

Social Darwinism suggests that only the fittest survive, suggesting that people (and plants and animals) that are the smartest and most capable for survival are the ones who succeed in a society. This can be compared to: a. Oscar Lewis's culture of poverty thesis. b. Richard Hernstein and Charles Murray's bell curve thesis. c. Clinton's War on Poverty thesis. d. Gautreaux's Moving to Opportunity thesis.

Richard Hernstein and Charles Murray's bell curve thesis

Which nation has one of the highest poverty rates in the advanced world? a. The United States b. Great Britain c. Canada d. France

The United States

A lot of people who are eligible for food stamps in the United States don't apply for them. Why? a. They can't get to the Department of Social Services due to lack of transportation. b. They would prefer to diet. c. Since most people live in multigenerational homes, they don't see the need. d. They prefer to steal food.

They can't get to the Department of Social Services due to lack of transportation.

Why is it difficult for almost half of Americans to save for retirement? a. They are living beyond their means. b. Financial pressures are too high. c. They don't have pension or retirement savings plans. d. They have unlimited needs and wants.

They don't have pension or retirement savings plans.

According to the culture of poverty theory, what happens once survival adaptations are in place? a. The poor lose their desire to improve their life. b. Educational attainment is lost. c. The poor accept their place in society. d. They hold poor people back.

They hold poor people back.

In the 1980s, journalist Ken Auletta coined the phrase "underclass." He said the underclass was different from the "rest of us" in what way? a. They tended to be more dangerous to the rest of us. b. They tended to have higher levels of education but did not use it to their advantage. c. They tended to like spending their time waiting in the welfare line talking to their friends all day. d. They had lower IQs than the rest of us.

They tended to be more dangerous than the rest of us.

Charles Murray pointed out several flaws in the underclass thesis. Which of the following is NOT one the flaws he mentions? a. The welfare state provides the wrong long-term incentives. b. Welfare regulations make work less attractive. c. Welfare regulations make marriage less attractive. d. Welfare regulations encourage deviant behavior.

Welfare regulations encourage deviant behavior.

The Gini coefficient is: a. a comparison of poverty rates. b. the U.S. poverty line. c. a measure of economic inequality. d. a measure of poverty rates.

a measure of economic inequality

Some policy experts believe that welfare creates more problems than it solves because it discourages people from finding work. This is also known as: a. a social disease. b. a perverse incentive. c. the cycle of poverty. d. an intended consequence.

a perverse incentive

What term describes the measurement of poverty where a household's income falls below the necessary level to purchase food to physically sustain its members? a. relative poverty b. absolute poverty c. poverty threshold d. official poverty rate

absolute poverty

Welfare hinders work because: a. of time spent following bureaucratic rules. b. mothers have to take care of children and the home. c. of trying to keep appointments to get food stamps. d. of all of the above.

all of the above

Government offices administering food stamps: a. are not always optimally located for recipients. b. have limited employees to assist recipients. c. are minimizing welfare programs. d. are reducing the number of recipients eligible for aid.

are not always optimally located for recipients

Thomas Monaghan, one of the Forbes 400 richest Americans, said, "To me one of the most exciting things in the world is: a. being poor." b. being wealthy." c. going from meager origins to wealth." d. living on $68 a year."

being poor

Herrnstein and Murray questioned whether poverty was a side effect of ____________ conditions, or whether it actually caused limited opportunities for children. a. educational b. environmental c. biological d. structural

biological

What is meant by the phrase "busted her digit"? a. suffering from rheumatoid arthritis b. not getting a welfare check c. cashing one's welfare check d. standing in long welfare lines

cashing one's welfare check

James Rosenbaum (2000) found that the people most likely to benefit from being moved from lowincome, ghetto neighborhoods were the: a. elderly. b. children. c. educated. d. disabled.

children

People who are born into poverty and ultimately raise their own children in poverty learn "how" to live in poverty. They learn the norms and values associated with that particular way of life. This is known as Oscar Lewis's: a. War on Poverty. b. swapping. c. culture of poverty. d. lack of accessibility culture.

culture of poverty

Gautreaux v. Chicago Housing Authority was a class-action suit that alleged public housing was: a. keeping the underclass poor. b. de facto government segregation. c. keeping the poor on public assistance. d. not up to sanitary code.

de facto government segregation

One of the ways theorists who believe poverty is relational measure poverty by: a. determining what it takes to feed a family of four and multiplying this number by three. b. determining health care costs and multiplying this number by four. c. determining the median income in a given location and anything under this number is considered poverty. d. determining the average income in a given location and anything under this number is considered poverty.

determining the median income in a given location and anything under this number is considered poverty

According to the underclass thesis, the poor are: a. undependable. b. no different from the rest of us. c. deviant and dangerous to mainstream society. d. unmotivated and lazy.

deviant and dangerous to mainstream society

What term do economists use to describe the relative value of present consumption versus future savings? a. future wage incentive b. discount rate c. long-term matches d. future interest yields

discount rate

Your text defines poverty as a condition of deprivation due to: a. economic circumstances. b. social circumstances. c. structural circumstances. d. all of the above.

economic circumstances

Gated communities are examples of what factor that is mixing with wealth inequality to increase the gap between the rich and the poor? a. racism b. redlining c. real estate equality d. economic segregation

economic segregation

The Moving to Opportunity study didn't show any change in what factors between the control and treatment groups? a. test scores and truancy b. injuries and asthma c. employment and earnings d. violence and health

employment and earnings

Why did only 14% of H&R Block filers take the offer of a 50% match to divert some of their tax refund to an IRA? a. employment instability b. financial needs and wants c. present financial pressures d. they didn't understand the IRA interest rate

employment instability

The Moving to Opportunity study found that those in the group who received assistance in relocating and life-skills training in addition to housing vouchers: a. experienced hostility from their new neighborhoods. b. were not testable because many participants could not be found later. c. were no different than those in the control group. d. experienced less stress and better health.

experienced less stress and better health

Your text mentions outcomes that people believe stem from receiving welfare. Which of the following is NOT a result mentioned in your text? a. a sense of helplessness b. dependency c. hindrance entering the labor market d. feelings of incompetence

feelings of incompetence

What is the key the government could use to get low-income earners to commit to saving? a. get them to use a small percentage of their tax refund b. offer added incentives c. get them to commit to saving future income d. make it mandatory for employers to have a retirement fund

get them to commit to saving future income

Herrnstein and Murray argued that there is a relationship between high IQ and: a. good parenting. b. welfare. c. racism. d. job status.

good parenting

Which of the following is NOT one of the explanations for the vast disparity of wealth in the United States mentioned in your text? a. timing b. institutional structure c. government d. race

government

James Rosenbaum found that those who moved out of the ghetto and into low-poverty areas: a. had no change in their life situation. b. had a better employment situation. c. destroyed the neighborhood within a short time. d. scared away the previous residents.

had a better employment situation

When the official poverty line was first set, food made up the largest percentage of household budgets. In today's society, what now makes up the largest percentage? a. transportation b. housing c. heating homes d. health care

housing

The Moving to Opportunity study didn't answer the poverty question because what factor remained constant? a. income b. social environment c. test scores d. social skills

income

An economist surveying lottery winners found people who had zero earnings and who were not in the workforce before winning: a. spent their money quickly. b. increased their commitment to work. c. gave most of their winnings to family and friends. d. volunteered in their communities.

increased their commitment to work

William Julius Wilson believed that there were factors other than welfare that led to a lack of inner-city job opportunities. Which of the following is NOT one of the factors? a. gentrification b. suburbanization c. globalization d. industrialization

industrialization

The definition of relative poverty takes into account which important factor when determining poverty based on a percentage of median income? a. education level b. location c. employment status d. wealth

location

According to your text, what drives American poverty rates? a. social structure b. lopsided economic rewards c. the richest 10% of the population d. unequal access to resources

lopsided economic rewards

Why is it more difficult for middle- and working-class Americans to save money? a. job instability b. the financial pressure of unlimited needs and wants c. no employment savings plan d. many of their employers won't match retirement contributions

many of their employers won't match retirement contributions

Which of the following is NOT a result of the negative tax experiment? a. increased divorce b. longer periods of unemployment c. more births d. allowing women to leave abusive relationships

more births

A higher Gini coefficient score means: a. more inequality. b. less inequality. c. higher poverty. d. lower poverty.

more inequality

When Marlin was asked what would have made a difference when he was growing up, he responded that parents need: a. more quality time with their children. b. reduced financial stress. c. good child care while they are working. d. the minimum wage increased.

more quality time with their children

Which of the following is a practice that supports the culture of poverty argument? a. marriage b. assisted-living facilities for the elderly c. multifamily households d. paying for day care

multifamily households

What method is usually used to evaluate poverty? a. objective analyses of statistics and economics b. the Gini coefficient c. subjective evaluations of mathematical measurements d. evaluation of policies already in place

objective analyses of statistics and economics

Some would argue that a country with a history of feudalism (as opposed to the United States) would more likely develop a culture of: a. individualism. b. strict capitalism. c. paternalism. d. racial prejudice.

paternalism

Which of the following is NOT one of the things the Personal Responsibility and Work Opportunity Reconciliation Act did? a. let states have more responsibility in running welfare programs b. encouraged two-parent families c. set up children's savings accounts that parent can't touch d. discourage out-of-wedlock births

set up children's savings accounts that parents can't touch

Susan Mayer, author of What Money Can't Buy: Family Income and Children's Life Chances, found in her study: a. confirmation of reports of the devastation of poverty. b. that poverty caused many social ills. c. that the effects of income on children's outcomes has been overstated. d. that increased incomes made big differences in children's outcomes.

that the effects of income on children's outcomes has been overstated

Which program shifted more of the responsibility of running welfare programs onto individual states and mandated time limits for the number of months a person can receive aid? a. the Women, Infant, and Children Nutrition Program b. the Economic Opportunity Act c. the Personal Responsibility and Work Opportunity Reconciliation Act d. the War on Poverty

the Personal Responsibility and Work Opportunity Reconciliation Act

Your text suggests that the researchers for the negative income tax should have focused on: a. income over time. b. the outcome of gambling. c. different research questions. d. the children rather than the parents.

the children rather than the parents

The 1996 Personal Responsibility and Work Opportunity Reconciliation Act is also referred to as: a. the "end of welfare as we know it." b. the War on Welfare. c. the Economic Opportunity Act. d. the War on Poverty.

the end of welfare as we know it

As discussed with the culture of poverty theory, the adaptive practice of "swapping" is: a. a means of surviving until the end of the month. b. the exchange of time, money, and resources. c. illegally selling food stamps. d. an illegal way to get more government income.

the exchange of time, money, and resources

Marlin told fellow inmates that they should not get involved with a woman who has children because the children's father can pop back into her life and the new boyfriend may get burned. In the culture of poverty, the irony of Marlin's statement is that: a. most of the fathers are in prison. b. the instability of the household is perpetuated. c. the fathers don't want to be involved in their children's lives. d. the mothers don't know who the fathers are.

the instability of the household is perpetuated

According to Daniel Patrick Moynihan, what is the root cause of African Americans' economic problems? a. multigenerational living arrangements b. the patrifocal family c. welfare d. the matrifocal family

the matrifocal family

Minimizing the amount of time welfare programs require of their recipients was one of the many rationales behind: a. the War on Poverty. b. the negative income tax. c. Clinton's 1996 end to welfare. d. the Office of Economic Opportunity.

the negative income tax

Mollie Orshansky used the U.S. Department of Agriculture's recommendations for the minimum amount of healthy food, estimated the cost for a variety of family types, and multiplied this figure by a factor of three to measure: a. relative poverty. b. the poverty threshold. c. the official poverty line. d. absolute poverty.

the official poverty line

Your text lists several explanations for why the United States has the highest inequality of all English-speaking nations. Which of the following is NOT an explanation your text cites? a. the division of power within the U.S. government b. lack of a feudal history c. the system of inequality in the United States originated in Europe d. racism within U.S. borders

the system of inequality in the United States originated in Europe

A study of Cherokee children whose income greatly increased due to legalized gambling on reservations found that: a. their behavioral problems decreased. b. their educational scores improved. c. school truancy increased. d. their social skills improved.

their behavioral problems decreased

One of the results of the negative income tax experiment was that more and more women left their marriages. This was because: a. they were less financially dependent on their (possibly) abusive husbands. b. the tax code provided a significant advantage to singles versus couples. c. women found it easier to open independent businesses. d. women misunderstood the tax code, thinking they were getting more money than they actually were.

they were less financially dependent on their (possibly) abusive husbands

One strategy that might allow more women to join the workforce, as suggested by Al Gore and other leftists, would be: a. to eliminate men from certain jobs, like nurses or secretaries. b. to prohibit children from making minimum wage. c. to provide universal day care. d. to limit the number of racial minorities in state institutions of higher education.

to provide universal day care

One of the explanations of continued racism in America is: a. we have found that racial minorities (Hernstein) have lower IQs. b. we colonized others outside the country itself, like Puerto Rico. c. we colonized others within the country itself, as with slavery. d. we found that racism is a biological trait, something that is impossible to eliminate.

we colonized others within the country itself, as with slavery

From her research, Susan Mayer concluded that it was not poverty, but rather ____________, that really mattered. a. our desires b. our perception of money c. wealth d. the media

wealth

Income-based measurements are deceptive because they hide the real influence of: a. wealth. b. social status. c. employment. d. education.

wealth

If you were unemployed and were to win a modest amount of money in the lottery (say, $20,000 a year), research suggests that: a. your chance of ever getting a job is greatly reduced. b. your chance of getting a job is greatly increased. c. you would fall even further into poverty because your welfare payment would be eliminated. d. you would most likely use that money to get a higher education, thus making you more marketable in the future.

your chance of getting a job is greatly increased