Principles_of_Economics3e-TestBank-Ch15-poverty-economic-inequality.pdfhttps://online2pdf.com/remove-pdf-header-footer
1 of 24https://online2pdf.com/remove-pdf-header-footer
Page 1https://online2pdf.com/remove-pdf-header-footer
Economics Chapter 15 Test Bank
Multiple Choice Questions
1. When reference is made to the _________________________ , it means the specific amount
of income needed for a basic standard of living.
A. poverty trap
B. income line
C. income gap
D. poverty line
Answer: D
Reference:
Explanation:
Type: Multiple Choice Difficulty: Easy Category: Remember
2.A situation of _________________________ arises when one group receives a higher share
of total income or wealth than others.
A. poverty
B. inequality
C. poverty entrapment
D. quintiles
Answer: B
Reference:
Explanation:
Type: Multiple Choice Difficulty: Easy Category: Remember
3. Antipoverty programs that are set up so that the amount of government benefits will decline
substantially as poor people earn more income typically create _________________________.
A. a poverty trap
B. an income inequity
C. a poverty line
D. a safety net
Answer: A
Reference:
Explanation:
Type: Multiple Choice Difficulty: Easy Category: Remember
This file is copyright 2023, Rice University. All Rights Reserved.
Page 1 of 24https://online2pdf.com/remove-pdf-header-footer
Principles_of_Economics3e-TestBank-Ch15-poverty-economic-inequalityhttps://online2pdf.com/remove-pdf-header-footer
1https://online2pdf.com/remove-pdf-header-footer
,Principles_of_Economics3e-TestBank-Ch15-poverty-economic-inequality.pdfhttps://online2pdf.com/remove-pdf-header-footer
2 of 24https://online2pdf.com/remove-pdf-header-footer
Page 2https://online2pdf.com/remove-pdf-header-footer
4. An individual whose income level is just above the poverty line would most likely be classified
as being a member of the _________________________.
A. working poor
B. poverty trapped
C. near-poor
D. illiterate poor
Answer: C
Reference:
Explanation:
Type: Multiple Choice Difficulty: Easy Category: Understand
5. The group of government programs that provide assistance to the poor and the near-poor is
synonymous with which of the following?
A. safety net
B. safety quintiles
C. poverty net
D. antipoverty net
Answer: A
Reference:
Explanation:
Type: Multiple Choice Difficulty: Easy Category: Understand
6.bA method often used by economists to look at distribution of income in a society's economy
involves
A. programs for wealth redistribution.
B. quintiles, or dividing a whole group into fifths.
C. imposing taxes to redistribute wealth.
D. quads, or dividing a whole group into fourths.
Answer: B
Reference:
Explanation:
Type: Multiple Choice Difficulty: Easy Category: Understand
7. A Lorenz curve refers to a graphic illustration of the share of population on the
_________________________ and the cumulative percentage of total income received on the
_________________________.
A. left quintile; right quintile
B. right quintile; left quintile
This file is copyright 2023, Rice University. All Rights Reserved.
Page 2 of 24https://online2pdf.com/remove-pdf-header-footer
Principles_of_Economics3e-TestBank-Ch15-poverty-economic-inequalityhttps://online2pdf.com/remove-pdf-header-footer
2https://online2pdf.com/remove-pdf-header-footer
, Principles_of_Economics3e-TestBank-Ch15-poverty-economic-inequality.pdfhttps://online2pdf.com/remove-pdf-header-footer
3 of 24https://online2pdf.com/remove-pdf-header-footer
Page 3https://online2pdf.com/remove-pdf-header-footer
C. horizontal axis; vertical axis
D. vertical axis; horizontal axis
Answer: C
Reference:
Explanation:
Type: Multiple Choice Difficulty: Easy Category: Understand
8. In circumstances dealing with poverty, the term _________________________ means taking
income from those with higher incomes and providing income to those with lower incomes.
A. safety net
B. estate tax
C. minimum wage
D. redistribution
Answer: D
Reference:
Explanation:
Type: Multiple Choice Difficulty: Easy Category: Remember
9. _________________________ allows the government to collect wealth for redistribution
based on the amount of stored wealth that is being passed on in the form of an inheritance.
A. An inheritance tax
B. A redistribution tax
C. An estate tax
D. A death tax
Answer: C
Reference:
Explanation:
Type: Multiple Choice Difficulty: Easy Category: Remember
10. With respect to market forces and/or labor markets that determine peoples' wages, which of
the following is a true statement?
A. labor markets consider how much a family needs for health care
B. market forces consider what happens to families in their business decisions
C. labor markets consider how much a family needs for necessities
D. labor markets create considerable inequalities relating to income
Answer: D
Reference:
Explanation:
This file is copyright 2023, Rice University. All Rights Reserved.
Page 3 of 24https://online2pdf.com/remove-pdf-header-footer
Principles_of_Economics3e-TestBank-Ch15-poverty-economic-inequalityhttps://online2pdf.com/remove-pdf-header-footer
3https://online2pdf.com/remove-pdf-header-footer
1 of 24https://online2pdf.com/remove-pdf-header-footer
Page 1https://online2pdf.com/remove-pdf-header-footer
Economics Chapter 15 Test Bank
Multiple Choice Questions
1. When reference is made to the _________________________ , it means the specific amount
of income needed for a basic standard of living.
A. poverty trap
B. income line
C. income gap
D. poverty line
Answer: D
Reference:
Explanation:
Type: Multiple Choice Difficulty: Easy Category: Remember
2.A situation of _________________________ arises when one group receives a higher share
of total income or wealth than others.
A. poverty
B. inequality
C. poverty entrapment
D. quintiles
Answer: B
Reference:
Explanation:
Type: Multiple Choice Difficulty: Easy Category: Remember
3. Antipoverty programs that are set up so that the amount of government benefits will decline
substantially as poor people earn more income typically create _________________________.
A. a poverty trap
B. an income inequity
C. a poverty line
D. a safety net
Answer: A
Reference:
Explanation:
Type: Multiple Choice Difficulty: Easy Category: Remember
This file is copyright 2023, Rice University. All Rights Reserved.
Page 1 of 24https://online2pdf.com/remove-pdf-header-footer
Principles_of_Economics3e-TestBank-Ch15-poverty-economic-inequalityhttps://online2pdf.com/remove-pdf-header-footer
1https://online2pdf.com/remove-pdf-header-footer
,Principles_of_Economics3e-TestBank-Ch15-poverty-economic-inequality.pdfhttps://online2pdf.com/remove-pdf-header-footer
2 of 24https://online2pdf.com/remove-pdf-header-footer
Page 2https://online2pdf.com/remove-pdf-header-footer
4. An individual whose income level is just above the poverty line would most likely be classified
as being a member of the _________________________.
A. working poor
B. poverty trapped
C. near-poor
D. illiterate poor
Answer: C
Reference:
Explanation:
Type: Multiple Choice Difficulty: Easy Category: Understand
5. The group of government programs that provide assistance to the poor and the near-poor is
synonymous with which of the following?
A. safety net
B. safety quintiles
C. poverty net
D. antipoverty net
Answer: A
Reference:
Explanation:
Type: Multiple Choice Difficulty: Easy Category: Understand
6.bA method often used by economists to look at distribution of income in a society's economy
involves
A. programs for wealth redistribution.
B. quintiles, or dividing a whole group into fifths.
C. imposing taxes to redistribute wealth.
D. quads, or dividing a whole group into fourths.
Answer: B
Reference:
Explanation:
Type: Multiple Choice Difficulty: Easy Category: Understand
7. A Lorenz curve refers to a graphic illustration of the share of population on the
_________________________ and the cumulative percentage of total income received on the
_________________________.
A. left quintile; right quintile
B. right quintile; left quintile
This file is copyright 2023, Rice University. All Rights Reserved.
Page 2 of 24https://online2pdf.com/remove-pdf-header-footer
Principles_of_Economics3e-TestBank-Ch15-poverty-economic-inequalityhttps://online2pdf.com/remove-pdf-header-footer
2https://online2pdf.com/remove-pdf-header-footer
, Principles_of_Economics3e-TestBank-Ch15-poverty-economic-inequality.pdfhttps://online2pdf.com/remove-pdf-header-footer
3 of 24https://online2pdf.com/remove-pdf-header-footer
Page 3https://online2pdf.com/remove-pdf-header-footer
C. horizontal axis; vertical axis
D. vertical axis; horizontal axis
Answer: C
Reference:
Explanation:
Type: Multiple Choice Difficulty: Easy Category: Understand
8. In circumstances dealing with poverty, the term _________________________ means taking
income from those with higher incomes and providing income to those with lower incomes.
A. safety net
B. estate tax
C. minimum wage
D. redistribution
Answer: D
Reference:
Explanation:
Type: Multiple Choice Difficulty: Easy Category: Remember
9. _________________________ allows the government to collect wealth for redistribution
based on the amount of stored wealth that is being passed on in the form of an inheritance.
A. An inheritance tax
B. A redistribution tax
C. An estate tax
D. A death tax
Answer: C
Reference:
Explanation:
Type: Multiple Choice Difficulty: Easy Category: Remember
10. With respect to market forces and/or labor markets that determine peoples' wages, which of
the following is a true statement?
A. labor markets consider how much a family needs for health care
B. market forces consider what happens to families in their business decisions
C. labor markets consider how much a family needs for necessities
D. labor markets create considerable inequalities relating to income
Answer: D
Reference:
Explanation:
This file is copyright 2023, Rice University. All Rights Reserved.
Page 3 of 24https://online2pdf.com/remove-pdf-header-footer
Principles_of_Economics3e-TestBank-Ch15-poverty-economic-inequalityhttps://online2pdf.com/remove-pdf-header-footer
3https://online2pdf.com/remove-pdf-header-footer
