Tackle the Test: Multiple-Choice Questions

1. Question

   Which of the following is true of the U.S. poverty rate?

   A.

   It fell in the 1960s.

   B.

   There has been a clear upward trend since 1973.

   C.

   It was lower in 2012 than in 1973.

   D.

   It has remained unchanged since the mid 1970s.

   E.

   It has been steadily decreasing since 1959.

   Which of the following is true of the U.S. poverty rate?

2. Question

   In 2012, the poorest 20% of households received approximately what percent of total income?

   A.

   1%

   B.

   3%

   C.

   7%

   D.

   10%

   E.

   17%

   In 2012, the poorest 20% of households received approximately what percent of total income?

3. Question

   If one person received all of the income in an economy, the Lorenz curve would

   A.

   rise steadily until the middle of the graph, and then fall.

   B.

   be upward-sloping.

   C.

   be downward-sloping.

   D.

   be vertical on the left side of the graph.

   E.

   lie along the horizontal axis except at the far right side of the graph.

   If one person received all of the income in an economy, the Lorenz curve would

4. Question

   Programs designed to help only those with low incomes are called

   A.

   welfare programs.

   B.

   in-kind programs.

   C.

   means-tested programs.

   D.

   income maintenance programs.

   E.

   social programs.

   Programs designed to help only those with low incomes are called

5. Question

   If a country has a perfectly equal distribution of income, its Gini coefficient equals

   A.

   0.

   B.

   1.

   C.

   10.

   D.

   50.

   E.

   100.

   If a country has a perfectly equal distribution of income, its Gini coefficient equals