13.3

Question 1

the income level below which income is insufficient to support a family or household

Answer 1

Poverty threshold

Question 2

the percentage of people who live in households with income below the official poverty threshold

Answer 2

Poverty rate

Question 3

the way in which a nation’s total income is distributed among its population

Answer 3

Income distribution

Question 4

government program that helps low-income recipients buy food

Answer 4

Food stamp program

Question 5

the curve that illustrates income distribution

Answer 5

Lorenz curve

Question 6

area where businesses can locate free of certain state, local, and federal taxes and restrictions

Answer 6

Enterprise zone

Question 7

federal funds given to the states in lump sums

Answer 7

Block grants

Question 8

a program requiring work in exchange for temporary government assistance

Answer 8

Workfare

Question 9

What factors affect the poverty rate?

Answer 9

Race and ethnic origin
Type of family
Age
Residence
Education
Growth of low-skill service jobs

Question 10

Poverty rates differ sharply by group, according to several indicators:

Answer 10

Race and ethnic origin
Type of family
Age
Residence

Question 11

Causes of poverty:

Answer 11

Low wages or limited work schedule 
Shifts in family structure 
Living in the inner city 
Globalization 
Lack of education

Question 12

Factors that lead to income gap include:

Answer 12

Differences in skills 
and education
Inheritances
Field of work

Question 13

a refundable tax credit that low-income families with children receive when they fill out their federal income tax return.

Answer 13

Earned Income Tax Credit (EITC)

Question 14

provides block grants to the states to help move poor adults from welfare dependence to employment.

Answer 14

Temporary Assistance for Needy Families (TANF)