The 1996 replacement of Aid to Families with Dependent Children with Temporary Assistance for Needy Families constitutes the single biggest reform in the welfare system in the United States in the last 70 years.
a. True
b. False
QUESTION 2Two reasons why a few individuals earn very high pay in the sports and entertainment fields are that their
a. marginal productivity is high and entry into those industries is restricted
b. marginal productivity is high and the cross-elasticity of demand between their services and the services of other employees is also high
c. marginal productivity is high and there is open competition for their talents
d. wage elasticity of supply is high and there is open competition for their talents
e. marginal productivity is high and they are prohibited from changing employers
QUESTION 3Generally speaking, the percent of people living in poverty in the United States is larger in the south than it is in the north.
a. True
b. False
QUESTION 4Winner-take-all labor markets are commonly found in
a. sports and entertainment industries
b. unionized industries
c. the government sector
d. the legal services industry
e. service industries in general
QUESTION 5There is much agreement among policy analysts and researchers that the 1996 welfare reform has failed.
a. True
b. False
QUESTION 6In a winner-take-all labor market,
a. anyone who is hired at any wage is a winner
b. any firm that can hire a worker is a winner
c. a few key people critical to the overall success of the enterprise are rewarded with substantial pay
d. the person most critical to the overall success of an enterprise is rewarded with substantial pay, and everyone else is paid the median wage
e. only one worker is paid
QUESTION 7Welfare recipients as a percentage of the US population after the welfare reforms in 1994?
a. True
b. False
QUESTION 8It is sometimes claimed that garbage collectors are paid more than elementary school teachers. If this is true, one reason might be
a. the difference in working conditions
b. that school teachers are usually women
c. that the supply of teachers is small
d. that the demand for teachers is small
e. that the market does not value teachers
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