26. By some measures there has been an increase in extreme poverty following the 1996 welfare reform. True or false.

27. Current programs that are legacies of the Social Security Act (1935) include unemployment insurance (UI), Social Security benefits for retired workers or survivors (OASI), Social Security disability insurance (DI), Supplemental Security Income (SSI), and the Supplemental Nutritional Assistance Program (SNAP). True or false.

28. Expenditures at the bottom of the income distribution tend to exceed income, whereas at the top of the income distribution expenditures tend to be less than income. True or false.

29. Affirmative action is an example of associative redistribution. True or false.

30. In its measure of resources the OPM does not count in-kind transfers, taxes, or refundable tax credits (such as the Earned Income Tax Credit or the Child Tax Credit). True or false.

31. The SMP poverty rate for children is higher than the OPM poverty rate for children. True or false.

32. Under the AFDC program, reducing the effective tax rate on earned income would lead to decreases in eligibility. True or false.

33. In The Bell Curve Herrnstein and Murray equate AFQT with IQ. True or false.

34. The SPM poverty rate for elderly is lower than the OPM poverty rate for elderly. True or false.

35. Both Wilson (1987) and Heckman (2011) believe that contemporary racism is important in explaining the relatively poor position of black Americans. True or false.

36. Combined Medicaid and Medicare expenditures are currently in excess of two-trillion dollars per year. (Use for questions 36 and 37). Suppose that you are interested in trying to estimate the effect of child poverty on achievement using the regression model i 0 1 i i achievement childpov =+ + where achievement an indicator of academic achievement, childpov is a 0-1 indicator of childhood poverty, and is a (conditional) mean zero random disturbance. True or false.

37. (refer above) In the model above 1 is most likely positive. True or false.

38. (refer above) If living or growing up in a single parent family is an important determinant of achievement (independent of child poverty status), then the OLS estimate of 1 will most likely biased upward. True or false.

39. Based on evidence presented by Ashenfelter and Rouse (1999) there are large differences in the rate of return to a year of schooling across racial-ethnic groups. True or false.

40. According to evidence provided by Iceland and Bauman (2006) large, temporary, drops in income below the poverty line are not associated with larger increases in some hardship indicators than the equivalent loss of income spread out over a longer time period. True or false.

41. In general, when Americans are polled and asked questions such as "How much income does it take a family of four to get by in your community?" the average (or median) response is near the federal poverty threshold for a family of 4. True or false.

42. A consistent finding of discrimination across many in audit pair studies does not necessarily imply that there will be discrimination at the market (or wage) level. 4 True or false.

43. Bertrand and Mullainathan (2004) conducted an audit pair study of racial discrimination by randomly assigning black and white names to resumes, using the resumes to apply for jobs, and noting the difference in callback rates between the resumes with white and black names. They find that callback rates are for lower resumes with black names. At issue is whether this racial difference in callback rates represents the effects racial discrimination. One potential problem in interpreting the difference in callback rates as evidence of discrimination is that some of the black names might be indicative of social class (or family background) as much as (or in addition to race) race. This problem is highlighted by the fact that, within by race-sex groups, there was a positive correlation between the average education level of the mother associated with a name and its callback rate. True or false.

44. Bertrand and Mullainathan (2004) find that there are virtually no differences in callback rates between high and low quality resumes with black names. This finding can be interpreted as evidence of taste-based discrimination. True or false.

45. By some measures there has been a large increase in extreme poverty following the 1996 welfare reform. True or false.