Question

1. The level of income below which the federal government classifies a family as poor is called the:

A. relative measure of poverty.

B. poverty threshold.

C. absolute measure of poverty.

D. median income threshold.

2. What is the United States government's formal definition of the poverty line?

A. It is the annual income level below which a household is exempt from taxes.

B. It is a level of annual income equal to total income in society divided by the population, adjusted for a family of four.

C. It is a level of annual income equal to three times the amount of money necessary to purchase the minimum quantity of food required for adequate nutrition.

D. It is a level of annual income equal to the amount of money necessary to purchase the minimum quantity of food required for adequate nutrition.

3.What is the poverty rate?

A. the percentage of households who qualify for government assistance to meet the minimal requirement for adequate nutrition

B. the percentage of working adults whose annual income is sufficiently low as to be are exempt from paying income taxes

C.the rate at which the number of people relative to the size of the population fall below the poverty line

D. the percentage of the population earning an annual income below the poverty line, according to the federal government's definition

4. If official poverty statistics for the United States included transfer payments individuals receive from the government, such as Social Security payments and other non-cash benefits such as food stamps

A. poverty would be eliminated.

B. the poverty rate would be overstated.

C. income inequality would be greater.

D. the poverty rate would be lower.

5. The earned income tax credit (or EITC):

A. provides tax credits to firms who hire low-income workers.

B. reduces the tax rate on investment income.

C. reduces the sales tax paid by low-income workers.

D. gives low-income workers credits on their federal income taxes.

6. What is the poverty rate?

A. the percentage of the population earning an annual income below the poverty line, according to the federal government's definition

B. the percentage of households who qualify for government assistance to meet the minimal requirement for adequate nutrition

C. the rate at which the number of people relative to the size of the population fall below the poverty line

D. the percentage of working adults whose annual income is sufficiently low as to be are exempt from paying income taxes

7. TANF stands for Temporary Assistance for Needy Families.

True

False

8. Since its inception in 1996, the Temporary Assistance for Needy Families (TANF) program has:

A. aided the poor by automatically increasing welfare payments when inflation occurs.

B. increased, rather than reduced, the number of people on welfare.

C. reduced the number of people on welfare by more than one-half.

D. greatly increased the unemployment rate.

9. The TANF program is designed to:

A. shift people from welfare to employment.

B. provide income to the blind and disabled.

C. increase the minimum wage.

D. provide medical insurance to poverty level workers.

10. The Supplemental Nutrition Assistance Program (SNAP):

A. was previously known as the food-stamp program.

B. added assistance to the food-stamp program by targeting children.

C. has been subject to widespread fraud through the illegal reproduction of paper food-stamp coupons.

D. was created to supplement the food consumption of low-income Social Security recipients.

provide medical insurance to poverty level workers.

Answer 1

1.

B

It is the poverty threshold or the poverty line, below that income, people are considered to be poor.

2.

C

It is the definition given by the US government.

3.

D

It is the method to calculate the poverty rate. It uses the poverty line income or income at the level of poverty threshold.

4.

D

These payments made to the poor families, will make them come out of the poverty. It will reduce the poverty rate.

Pl. repost other unanswered questions for their proper answers!