Multiple Choice Questions:

1. Which of the following is not a means-tested income transfer program?

a. Medicare

b. Food stamps

c. Temporary Assistance for Needy Families

d. All of the above are considered means-tested income transfer programs.

2. Which of the following is true?

a. Job-entry discrimination occurs when a person is denied employment on some basis other than productivity, while wage discrimination involves paying equally productive workers different wages.

b. Wage discrimination occurs when a person is denied employment on some basis other than productivity, while job-entry discrimination involves paying equally productive workers different wages.

c. Both wage and job-entry discrimination involve denying some persons employment on some basis other than productivity.

d. Both wage and job-entry discrimination involve paying equally productive workers different wages.

e. None of the above is true.

3. The official poverty rate for the United States is currently set at ____________ times the cost of providing a nutritionally adequate diet.

a. Two

b. Three

c. Five

d. Eight

e. Ten

4. The official poverty definition may ____________ the level of poverty because it does not include _____________.

a. Overstate; cash benefits

b. Overstate; noncash benefits

c. Understate; cash benefits

d. Understate; noncash benefits

5. Economic growth has the potential to eliminate:

a. All unemployment.

b. Relative poverty.

c. Absolute poverty.

d. Both a and b.

e. Both a and c.

6. Because the poverty line is an absolute standard

a. More families are pushed above the poverty line as economic growth moves the entire distribution of income upward.

b. The poverty rate has been fairly stable over the last 50 years.

c. An increase in the price of food will not have an effect on the poverty rate.

d. The poverty rate increases as an economy grows.