ECON ch 13

Given that the definition of poverty has not been adjusted to reflect the long-term rise in average incomes, one would expect _____ in the percentage of the population living below the poverty line.

a decrease

Which of the following gifts is most like an income transfer rather than an in-kind transfer?

a gift card branded through one of the main credit card companies

When eligibility for a government program is based on income and sometimes on wealth, the program is classified as _____ program.

a means-tested

A regressive tax is a tax where:

additional income earned is taxed at lower rates as additional income is earned.

Medicare is provided to:

all Americans age 65 and older and is not means-tested.

Food stamps (now called the Supplemental Nutrition Assistance Program) is an example of:

an in-kind transfer.

The poverty line is:

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

The poverty line is adjusted each year to reflect:

changes in the cost of living.

When the definition of poverty focuses on relative poverty, a person is in poverty if the household income is:

in the bottom 10% of household incomes in the nation.

When a welfare program is provided to those whose incomes fall below some minimum level, it is said to be:

means-tested.

When a poverty line is based on relative poverty, a household is poor if its income is less than:

one-half the median household income in the country.

The poverty rate is the:

percent of people whose family income is below the poverty line.

An income level below which a family is defined to be in poverty is known as the:

poverty line.

If a poverty line is set at a third of the median household income in a country, the poverty line is based on a _____ poverty standard.

relative

The official poverty line depends on _____ and is adjusted every year to reflect changes in the cost of living.

the size and composition of a family

Most Americans receive their health insurance through:

their employer.

The poverty line in the United States is based on an estimate of:

three times the value of low-cost food for the household.

Which of the following is a negative result of redistributing income toward equality?

Work incentives are reduced.

Which of the following tax systems is progressive? Corinne pays a 10% tax on the first $10,000 she earns plus _____ tax on any additional income.

a 25%

What is a progressive tax system?

It is a system where those with more income pay a higher share of their income in taxes than those with lower incomes.

What is social insurance?

It is government-provided financial funding to households to compensate for bad outcomes such as unemployment, illness, disability, or outliving their savings.

Which of the following is an example of an in-kind transfer?

Martin receives housing from the government due to his low income.

Which tax is regressive? Arturo pays an 8% tax on the first $9,000 he earns plus _____ tax on any additional income.

a 5%

A progressive tax system is designed so that:

as a person's income rises, a higher tax rate is paid on the extra dollars that are earned.

If a government program is means-tested, it:

is a poverty program that helps people who have low incomes.

A _____ program is one for which the recipient qualifies on the basis of _____.

means-tested; income

Social Security is a(n) _____ that is _____.

monetary transfer; not means-tested