1. Poverty is measured by the number of people who fall below a certain level of income—called

a. the poverty line

b. the poverty segment

c. the poverty bar

d. the poverty net

2. Poverty line defines

3. In the U.S., with respect to the poverty rate over time; that is, the percentage of the population below the poverty line in any given year, which of the following statements are true?

4.  The poverty line is based on

a. cash income

b. non-cahs income

c. commodity income

d. basic standards of living

5. Which of the following statements are true with respect to setting up the poverty line?

6. Consider a program to fight poverty that works in this reasonable-sounding manner: the government provides assistance to the poor, but as the poor earn income to support themselves, the government reduces the level of assistance it provides. With such a program, every time a poor person earns $50, the person loses $50 in government support. As a result, the person experiences no net gain for working.

Economists call this problem ___________________.

a. the poverty trap.

b. the debt trap.

c. the poverty circle.

d. the poverty cycle.

7. There is a strong positive correlation between economic growth and poverty. True or False.

a. True

b. False

8. The U.S. government has implemented a number of programs to assist those below the poverty line and those who have incomes just above the poverty line. Such programs are called_______________.

a. the social assistance

b. the safety net

c. the social security program

d. the income enhancement program

9. A variety of government support programs in the U.S., focused specifically on the poor include the following:

a. Temporary Assistance for Needy Families (TANF)

b. Aid to Families with Dependent Children (AFDC)

c. Supplemental Nutrition Assistance Program(SNAP)

d. all of the above

11. Consider the following statements. Which of them are true?

a. Aid to Families with dependent Children (AFDC), which provided cash payments to mothers with children who were below the poverty line.

b. The new law Temporary Assistance for Needy Families (TANF) replaced the AFDC.

c. The earned income tax credit (EITC), first passed in 1975, is a method of assisting the working poor through the tax system.

d. All of the above statements are true. 

12. Supplemental Nutrition Assistance Program (SNAP) is a federally funded program, started in 1964, was often called

a. the food support program

b. the food stamps

c. the nutrition program

d. the food initiative

13. This is a joint health insurance program between both the states and the federal government. The federal government helps fund this program, but each state is responsible for administering the program, determining the level of benefits, and determining eligibility. Name this program:

a. Medicaid

b. the medical program

c. Medicare program

d. the concessional care program

14. Consider the following statements with respect to Medicaid, a joint health insurance program between both the states and the federal government.

a. It provides medical insurance for certain low-income people, including those below the poverty line, with a focus on families with children, the elderly, and the disabled.

b. About one-third of Medicaid spending is for low-income mothers with children.

c. While an increasing share of the program funding in recent years has gone to pay for nursing home costs for the elderly poor.

d. All of these are true. 

15. A multi-dimensional measure of poverty include includes which of the following elements? 

a. Health

b. Education

c. Living standards

d. All of the above

10. From the Great Depression until 1996, the United States’ most visible anti-poverty program was:

a. Temporary Assistance for Needy Families (TANF)

b. Aid to Families with Dependent Children (AFDC)

c. The Earned Income Tax Credit (EITC)

d. Supplemental Nutrition Assistance Program (SNAP)