1. The official poverty line in the United States is based on
a. family income.
b. number of people in household.
c. farm or nonfarm family.
d. all of the above

2. Which of the following best describes what has happened to the distribution of income in the United States since 1980?
a. The middle-income classes have gained and the upper- and lower-income classes have lost.
b. The lower-income classes have gained and the upper-income classes have lost.
c. The upper-income classes have gained and the lower-income classes have lost.
d. The lower- and upper-income classes have gained and the middle-income classes have lost.

3. Most people are poor because
a. they are lazy.
b. they are exploited.
c. their resources are not in great demand.
d. they are old.

4. Which of the following is an example of a dual labor market?
a. Black computer programmers are paid less than their white counterparts.
b. Computer programmers are paid more than housekeepers.
c. Foreign computer programmers are paid less than their domestic counterparts.
d. Computer programmers who specialize in Windows software are paid more than ones who specialize in Macintosh software.

5. Which of the following is a program designed to reduce poverty by increasing economic opportunity?
a. affirmative action
b. workfare
c. Aid to Families with Dependent Children
d. transfer programs

6. What is the difference between public assistance and social insurance?
a. Social insurance is provided through transfer payments while public assistance is not.
b. Public assistance programs are only federally funded, while social insurance programs are funded at both the state and federal level.
c. Public assistance is designed to help the poor, while social insurance is designed to keep people from becoming poor.
d. There is no difference between public assistance and social insurance.

7. Government involvement in consumer protection
a. is greater now than 100 years ago because products are more complex and dangerous.
b. declined during the 1960s and 1970s.
c. is directed primarily at protecting consumers from natural dangers.
d. is declining because products are becoming less dangerous.

8. Although education and opportunity are the best long-run solutions to the poverty problem in the United States, transfer programs have been a successful short-run solution to reducing poverty.
True
False

9. There is a dual labor market in the United States because whites are paid more than minorities.
True
False

10. The primary objective of the food stamp program is to provide a balanced and nutritious diet to low-income families.
True
False

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