Inequality social insurance and redistribution: practice problems

Social safety nets, social insurance programs, and progressive tax systems are all types of income _____programs that have the impact of moving income distribution _____ equality a. redistribution; closer to b. replacement; further from c. redistribution; further from d. replacement; closer to

A) redistribution; closer to

Table: Average Income and Distribution of Income Data provides recent data from the World Bank on average income and the distribution of income in four countries. (look at table) Based on the data in the table, those in the top quintile have the highest average income in which country? a. Bangladesh b. Uganda c. Sri Lankad. d) Mongolia

C) Sri Lankad

The poverty line is: a. a measure that is used to define relative poverty and is based on housing and food costs. b. an estimate of the minimum income needed to provide a comfortable standard of living. c. an income level determined by the government, below which a family is defined to be in poverty. d. an income level set by the poor to identify the income needed to cover their basic needs.

C) an income level determined by the government, below which a family is defined to be in poverty

Social Insurance programs do NOT: a. set individual benefits based on past income. b. obtain revenue through program-specific taxes and fees. c. cover both rich and poor. d. use a means test to qualify people for benefits.

D) use a means test to qualify people for benefits

Which of the following statements is true regarding views of what is "fair"? a. Everyone tends to agree that things should be fair, but everyone does not agree on exactly what is fair. b. Everyone tends to agree that things should be fair, and everyone tends to agree on what is fair. c. Few believe that things should be fair, and everyone does not agree on exactly what is fair. d. Few believe that things should be fair, but everyone tends to agree on what is fair.

a) Everyone tends to agree that thing should be fair, but everyone does not agree on exactly what is fair