Chapter 12 Lesson 3

Who does the government consider to be poor? 1. Families whose income level does not support their household. 2. People who have been unemployed for at least six months. 3. Single-parent households in urban areas. 4. Individuals who work at minimum-wage jobs.

1. Families whose income level does not support their household.

Which of these government programs provides qualified people with food stamps? 1. SNAP 2. Medicaid 3. TANF 4. SSI

1. SNAP

The Earned Income Tax Credit program began as a response to 1. criticisms of government antipoverty programs. 2. concerns about fraud from the Internal Revenue Service. 3. demands from activists for more antipoverty efforts. 4. budget shortfalls resulting from spending on antipoverty programs.

1. criticisms of government antipoverty programs.

Which of these are the two most significant causes of income inequality? 1. differences in wealth and differences in education 2. changes in family structure and monopoly power 3. advances in technology and gender discrimination 4. an increase in service jobs and declining union membership

1. differences in wealth and differences in education

Which of these does a Lorenz curve compare? 1. equal income distribution and actual income distribution 2. levels of education and levels of participation in assistance programs 3. levels of income and rates of taxation 4. the distribution of wealth and the distribution of income

1. equal income distribution and actual income distribution

Which of these groups is most vulnerable to poverty? 1. people over 65 years of age 2. people who live in enterprise zones 3. people without high school diplomas 4. children

1. people over 65 years of age

Which law did Bill Clinton sign in 1996 to encourage welfare recipients to enter the workforce? 1. the Personal Responsibility and Work Opportunity Reconciliation Act 2. the Employee Training Act 3. the Unemployment Insurance Act 4. the Social Security Act

1. the Personal Responsibility and Work Opportunity Reconciliation Act

Which of these is one of the two biggest reasons for the nation's widening income inequality? 1. discrimination against women and minorities 2. differences in education level 3. an increase in service-sector jobs 4. a decline in union membership

2. differences in education level

During which decade were government assistance programs most effective at reducing the poverty rate? 1. the 1990s 2. the 1970s 3. the 1960s 4. the 1980s

2. the 1970s

Which of these statements most clearly indicates a way out of poverty? 1. Advances in technology mean that many service jobs require fewer skills than before. 2. Tax rates on high incomes have been reduced more than rates on lower incomes. 3. A college graduate makes more than twice as much as a high school dropout. 4. Workfare is a program in which welfare recipients work for their benefits.

3. A college graduate makes more than twice as much as a high school dropout.

Which of these was run by the states but later taken over by the federal government? 1. Temporary Assistance for Needy Families (TANF) 2. social service programs 3. Supplemental Security Income (SSI) 4. welfare programs

3. Supplemental Security Income (SSI)

Workfare is 1. a way of showing inequality in income distribution. 2. a program for companies to locate and be free of certain taxes and restrictions. 3. a program that requires work in exchange for temporary help from the government. 4. a refundable tax credit that low-income families with children receive.

3. a program that requires work in exchange for temporary help from the government.

Which of these is not considered when determining whether someone falls below the poverty threshold? 1. results of government studies on poverty 2. the effects of inflation on food prices 3. whether he or she receives food stamps 4. the amount of his or her income

3. whether he or she receives food stamps

Which of these most accurately describes the "income gap" in the United States? 1. It has narrowed due to government assistance to low-income individuals. 2. It has narrowed due to increased educational opportunities. 3. It has held steady due to a lack of educational opportunities. 4. It has widened despite government assistance to low-income individuals.

4. It has widened despite government assistance to low-income individuals.

What sort of work is usually required of those participating in workfare programs? 1. clerical work 2. manufacturing work 3. service industry work 4. community service work

4. community service work

The Lorenz Curve shows us 1. how income is affected by differences in education. 2. how labor affects income. 3. how low wages are produced by differences in skills. 4. how income is distributed in the economy.

4. how income is distributed in the economy.