Poverty and Income Inequality

What is the current poverty line for individuals in the US?

• $10,000 per year

• $20,000 per year

• $15,000 per year

• $13,590 per year

Answer explanation

The current poverty line for individuals in the US is $13,590 per year. This is the correct choice.

What is one of the criticisms of the national poverty line in the US?

• It does not account for housing assistance

• It is too high for the cost of living

• It is only applicable to the elderly

• It is based on global poverty rates

Answer explanation

The national poverty line in the US is criticized for not considering housing assistance.

What is the purpose of the World Bank's poverty line measurement?

• To analyze income inequality in the US

• To compare global poverty rates

• To set income levels for developed countries

• To determine poverty lines for the poorest countries

Answer explanation

The purpose of the World Bank's poverty line measurement is to determine poverty lines for the poorest countries.

What is the most significant factor determining poverty levels?

• Government assistance programs

• Labor market and wages

• Global economic policies

• Exchange rates and standards of living

Answer explanation

The most significant factor determining poverty levels is the labor market and wages.

What does the Lorenz Curve measure?

• Cost of living data

• Unemployment levels

• Distribution of income throughout the population

• Global poverty rates

Answer explanation

The Lorenz Curve measures the distribution of income throughout the population, highlighting the correct choice.

What is the shape of the Lorenz Curve for a perfectly equal distribution of income?

• Exponential curve

• Straight line

• Sine curve

• Bell curve

Answer explanation

The Lorenz Curve for a perfectly equal distribution of income is a straight line.

What is the main cause of increasing income inequality in the US?

• Global economic policies

• Government assistance programs

• Decreasing wage gaps

• Changing composition of American households

Answer explanation

The main cause of increasing income inequality in the US is the changing composition of American households.

What is the purpose of the Earned Income Tax Credit (EITC)?

• To provide free money for college tuition

• To impose taxes on inheritance

• To provide cash payments for food purchases

• To reward and encourage low income workers for working more

Answer explanation

The purpose of the Earned Income Tax Credit (EITC) is to reward and encourage low income workers for working more.

What is the main goal of the US Government's programs to reduce income inequality?

• Inheritance taxes

• Providing opportunities for advancement

• Redistribution of incomes

• Increasing poverty rates

Answer explanation

The main goal of the US Government's programs to reduce income inequality is to provide opportunities for advancement.

What is the purpose of the Medicaid program in the US?

• To impose taxes on inheritance

• To provide free money for college tuition

• To reward and encourage low income workers for working more

• To provide federal health insurance for those in poverty or near poverty

Answer explanation

The purpose of the Medicaid program in the US is to provide federal health insurance for those in poverty or near poverty.