What is the poverty rate?

Correct answer: The percentage of the population whose family income falls below an absolute level called the poverty line.

Explanation

This question assesses the understanding of the specific definition of the term 'poverty rate' as used in economics and public policy, distinguishing it from related concepts like the poverty line.

Other questions

Question 1

According to the data for the U.S. in 2008 presented in Chapter 20, what was the approximate annual family income threshold for the top fifth of the population?

Question 3

Which of the following is NOT listed in Chapter 20 as a problem that arises in measuring the degree of inequality?

Question 4

The political philosophy that believes the government should choose policies to maximize the total happiness of everyone in society is known as:

Question 5

John Rawls's theory of liberalism suggests that public policies should be designed as if by an impartial observer behind a:

Question 6

Which of the following policies to reduce poverty is most likely to cause an increase in unemployment among the least skilled workers?

Question 7

In 2008, what was the poverty rate for families headed by a female adult with no spouse present, according to Table 3?

Question 8

The utilitarian case for redistributing income is based on what assumption?

Question 9

How much income did the top 5 percent of U.S. families receive in 2008 as a percentage of total income?

Question 10

The regular pattern of income variation over a person's life, peaking around age 50 and falling at retirement, is called:

Question 11

Which political philosophy argues that the government should punish crimes and enforce voluntary agreements but not redistribute income?

Question 12

A negative income tax is a tax system that:

Question 13

What is the 'maximin criterion'?

Question 14

According to the example of a negative income tax formula, Taxes owed equals (1/3 of income) - $10,000, how much would a family that earned $15,000 owe?

Question 15

What is a primary criticism of antipoverty programs that create high effective marginal tax rates for the poor?

Question 16

Between 1970 and 2008, what trend in U.S. income distribution does Table 2 show?

Question 17

The 'leaky bucket' analogy is used to illustrate a problem with which political philosophy?

Question 18

What was the official poverty rate in the U.S. for 2008?

Question 19

Which of the following is an example of an in-kind transfer?

Question 20

Why do utilitarians reject complete equalization of incomes?

Question 21

In the Rawlsian thought experiment, what is the purpose of the 'veil of ignorance'?

Question 22

In 2008, the poverty line for a family of four was approximately:

Question 23

According to Robert Nozick's libertarian philosophy, when is it appropriate for the government to intervene in the distribution of income?

Question 24

According to studies cited in Chapter 20, what percentage of U.S. millionaires made their money on their own rather than inheriting it?

Question 25

Which of the following is an argument in favor of in-kind transfers over cash payments to the poor?

Question 26

In 2008, the top fifth of U.S. families had about how many times as much income as the bottom fifth?

Question 27

According to the international comparison in Figure 1, which country has the most equal distribution of income?

Question 28

Since the early 1970s, what has happened to the U.S. poverty rate?

Question 29

What does it mean for a family's living standard to depend more on 'permanent income' than 'annual income'?

Question 30

According to the study by Cox and Alm, when correcting for taxes and household size, the consumption per person in the richest fifth of U.S. households was how many times greater than in the poorest fifth?

Question 31

Which of the following groups has the highest poverty rate in the U.S. as of 2008?

Question 32

A policy of 'workfare' is designed to address what problem with antipoverty programs?

Question 33

When the government enacts policies to make the distribution of income more equal, it faces a trade-off because these policies can:

Question 34

If a father earns 20 percent above his generation’s average income, the chapter suggests his son will most likely earn:

Question 35

The poverty line is set by the federal government at roughly:

Question 36

From a libertarian perspective, which of the following government actions would be considered unjust?

Question 37

What is the primary trade-off that policymakers face when deciding how gradually to phase out benefits for antipoverty programs as income rises?

Question 38

Compared to other economically advanced countries like Japan and Germany, the United States has:

Question 39

Why would a study of consumption inequality likely show less disparity than a study of income inequality?

Question 40

Plato, the ancient Greek philosopher, concluded that in an ideal society, the income of the richest person should be no more than how many times the income of the poorest person?

Question 41

What is a common criticism of welfare programs like TANF?

Question 42

The 1996 welfare reform bill addressed the problem of work disincentives primarily by:

Question 43

Which of the three political philosophies of redistribution would be most likely to support a policy of equal incomes for all citizens?

Question 44

According to the chapter, why has income inequality in the U.S. increased in recent decades?

Question 45

If a government introduces a negative income tax with the formula: Taxes owed equals (1/3 of income) - $10,000, what is the break-even level of income where a family owes nothing?

Question 46

How do utilitarians and liberals (in the Rawlsian sense) differ in their approach to income redistribution?

Question 47

In 2008, the median family income in the U.S. was $61,521. This means that:

Question 48

The failure to include in-kind transfers in income statistics has what effect on the measured poverty rate?

Question 49

Which of the following poverty rates for racial groups in the U.S. was the highest in 2008?

Question 50

The Earned Income Tax Credit (EITC) is an actual U.S. policy that functions most like which theoretical policy?