CH 10

Question 1

Absolute income test

Answer 1

Sets a specific income level and defines a person as poor if their income falls below that level

Question 2

Relative income test

Answer 2

A test in which people whose income fall at the bottom of the income distribution are considered poor

Question 3

Poverty Line

Answer 3

Amount of annual income below which the federal government defines a household as poor

Question 4

Welfare programs

Answer 4

The array of programs that government provides to alleviate poverty

Question 5

Cash assistance

Answer 5

A money payment that an aid recipient can spend as he or she wishes

Question 6

Noncash Assistance

Answer 6

The provision of specific goods and services, such as food or medical services, job training, or subsidized child care rather than cash

Question 7

Discrimination

Answer 7

When people with similar economic characteristics experience different economic outcomes because of their race, sex, or other no economic characteristics

Question 8

Lorenz Curve

Answer 8

A curve that shows cumulative shares of income revenue Ed by individuals or groups

Question 9

Gini Coefficient

Answer 9

A measure of inequality expressed as the ratio of the area between the Lorenz curve and a 45 degree line and the total area under the 45 degree line