Econ Ch 15 Quiz

Since its inception in 1996, the Temporary Assistance for Needy Families (TANF) program has:

reduced the number of people on welfare by more than one-half.

The Supplemental Nutrition Assistance Program (SNAP):

was previously known as the food-stamp program.

What is the United States government's formal definition of the poverty line?

It is a level of annual income equal to three times the amount of money necessary to purchase the minimum quantity of food required for adequate nutrition.

Which of the following is a transfer payment?

Social Security payments

The earned income tax credit (or EITC):

gives low-income workers credits on their federal income taxes. (The EITC is a policy under which low-income workers receive credits on their federal income tax.)

The movement of individuals and households from one income quintile to another over time is called:

income mobility.

The level of income below which the federal government classifies a family as poor is called the:

poverty threshold. (The poverty threshold is the level of income below which the federal government classifies a family as poor.)

What is the poverty rate?

the percentage of the population earning an annual income below the poverty line, according to the federal government's definition

If official poverty statistics for the United States included transfer payments individuals receive from the government, such as Social Security payments and other non-cash benefits such as food stamps

the poverty rate would be lower.