Chapter 16: Economic and Social Welfare Policymaking

How does the distribution of wealth compare to the income distribution in the United States?

Compared to income, wealth is even more unequally distributed.

Which of the following circumstances makes it difficult for policymakers to use fiscal policy to control the economy?

Economic policies take a long time to implement.

Why do many scholars believe that the official poverty rate underestimates the actual poverty rate in the United States?

It does not adequately account for expenses such as housing, utilities, and child care.

Which statement best characterizes conservatives' position on means-tested programs?

Means-tested programs frequently discourage people from working.

Which of the following is an example of an entitlement program?

Medicare

Supporters of raising the federal minimum wage would most likely point to what fact?

More than one-third of minimum-wage workers are the sole breadwinners in their families.

In what way did President Obama's approach to reforming Social Security differ from that of George W. Bush?

Obama did not advocate for privatization of Social Security.

Why are entitlement programs sometimes called "social insurance" programs?

People pay into them and later get money from them.

Which statement best describes the impact of the 1996 welfare reforms?

The percentage of the population receiving welfare decreased, though the overall poverty rate did not.

Why are elected officials often unresponsive to the policy preferences of low-income citizens?

The poor have few political resources to influence government.

How has the income distribution changed in the United States in recent decades?

The rich have gotten richer, and the poor have gotten poorer.

What do laws setting the age at which one can work, determining the normal work week, and establishing workplace safety standards have in common?

They are government restrictions on economic freedom to promote the good of society.

How do Americans differ from Europeans in their views about poverty?

They are more likely to define poverty as an individual problem.

Which of the following is a similarity between U.S. and European social programs?

They face funding problems due to fewer taxpayers supporting an elderly population.

Why do politicians tread carefully on the issue of Social Security?

They fear a backlash from older Americans.

Transfer payments have had what impact on poverty in the United States?

They have decreased poverty, especially for the elderly.

How do social welfare programs in the United States compare to those of other established democracies?

They offer much less generous benefits.

Which of the following tools does the Federal Reserve System use to affect the money supply?

buying and selling of government bonds

President George W. Bush proposed to reform Social Security in what way?

by creating an option for individuals to put part of their Social Security contributions into private investment accounts

In what way did the Personal Responsibility and Work Opportunity Reconciliation Act place limitations on welfare programs?

by setting a lifetime maximum of five years of welfare benefits

How did the Social Security Act of 1935 expand aid to the poor?

by setting national standards for welfare programs and helping fund state programs

The most important tool the Federal Reserve has to manage the economy is its __________.

control of the supply of money

A person experiencing relative deprivation would perceive herself or himself as __________.

doing worse economically relative to some comparison group

Since 2010, payments from the Social Security Trust Fund to beneficiaries have __________.

exceeded the funds paid into the program

The poverty rate in the United States is especially high among __________.

female-headed households

To keep their welfare benefits, participants in the Temporary Assistance for Needy Families (TANF) program must __________.

find work within two years

Compared to countries with less generous social benefits, European countries have __________.

higher tax rates

What advice would a Keynesian economic theorist most likely give to help the economy out of recession?

increase government spending

The __________ nature of policymaking makes it difficult to withdraw benefits once they are established.

incremental

According to monetarists, having too much cash and credit in circulation leads to __________.

inflation

Political scientist Martin Gilens found that opposition to welfare was correlated with __________.

negative views of African Americans

Entitlement programs differ from means-tested programs in that they __________.

provide benefits to qualified individuals regardless of need

A conservative would most likely offer which of the following proposals to create new jobs?

reduce regulations on business

The unemployment rate is a measure of the percentage of Americans __________.

seeking work who are unable to find it

Which of the following is an example of a regressive tax?

state sales tax

Money for the Social Security Trust Fund comes from __________.

taxes paid by employees and employers

The consumer price index measures the change in __________.

the cost of buying a fixed basket of goods and services

Which of the following economic policy positions is more likely to be held by Democrats than by Republicans?

the importance of keeping unemployment low

Continuing opposition to welfare programs partially reflects the belief that __________.

the lure of welfare is driving illegal immigration

Keynesian economic theorists differ from advocates of supply-side economics in their views on __________.

the main purpose of fiscal policy

In debates about economic and social welfare policies, liberals focus on the imperfections of __________, while conservatives focus on the imperfections of __________.

the market; the government

The American Family and Medical Leave Act provides workers with __________ for the care of a new child or the illness of a family member.

up to 12 weeks of unpaid leave

The percentage of social spending that goes to programs that specifically target the poor is between __________.

10 and 20