Question

1. According to official statistics in the United States, a family is considered to live in poverty if its money income:

A. is below three times an average family's minimum food budget.

B. is below the income earned by 90 percent of all Americans.

C. is below the income earned by 80 percent of all Americans.

D. and all government transfers are below three times an average family's minimum food budget.

2. The minimum food budget used to determine the poverty line was determined in the:

A. 1960s but has been recalculated every decade to account for rising standards of living.

B. 1960s and is not recalculated to account for rising standards of living.

C. 1930s but has been recalculated every decade to account for rising standards of living.

D. 1930s and is not recalculated to account for rising standards of living.

3. Today, the Gini coefficient of income inequality for the United States is about .5. In 1975, it had been about .4. What do these numbers tell us?

A. Wealth is distributed less equally than income.

B. The number of rich people has fallen.

C. Income has become more unequally distributed.

D. The official definition of poverty has changed.

4. John Rawls's views on income distribution and fairness can best be described by the statement:

A. The lesser individuals' duty should be to work for the well-being of the brightest individuals.

B. A high level of income inequality is necessary to sustain the arts, beauty, education, and civilization.

C. Society's goal should be to maximize the welfare of the least well-off, but some inequality is necessary to meet this goal.

D. Property rights should be equally distributed, and the market should determine the distribution of income.

Answer 1

Answer 1(A)is below three times an average family's minimum food budget.

• According to official statistics in the United States, a family is considered to live in poverty if its money income is is below three times an average family's minimum food budget and it creates
  • Threshold based on family size
  • Composition
  • The age of House holder

Answer 2 (A) 1960s but has been recalculated every decade to account for rising standards of living.

• The minimum food budget used to determine the poverty line was determined in the 1960s but has been recalculated every decade to account for rising standards of living.
• Poverty is determined by Census Bureau using an official poverty measure (OPM).

Answer 3 (C)Income has become more unequally distributed.

Today, the Gini coefficient of income inequality for the United States is about .5. In 1975, it had been about .4 the number tells us Income has become more unequally distributed.

• TheGini coefficient is the relationship between the area between the diagonal line and the Lorenz curve to the area below the diagonal line.
• When two areas are equal, the Lorenz curve is the furthest it can be from the diagonal and depicts the most income inequality.

Answer4(D)Property rights should be equally distributed, and the market should determine the distribution of income.

• John Rawls's views on income distribution and fairness can best be described by the statement,John Rawls's views on income distribution and fairness can best be described by the statement:

Rawls's 2 principal of justice is,

1. The equal basic right and liberties are needed to secure the fundamental interest of free and equal Citizens.
2. It is provide fair equality of employment and educational opportunities