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