Food stamps and Medicaid are in-kind transfer programs.
a. True
b. False
QUESTION 2In what three ways do people use their time?
a. market work, selling labor in the labor market, and leisure
b. producing their own goods and services, nonmarket work, and market work
c. nonwork, work, and leisure
d. market work, nonmarket work, and leisure
e. market work, nonwork, and leisure
QUESTION 3Eligibility for income assistance benefits requires a prior financial contribution from the individual covered; eligibility for social insurance programs does not.
a. True
b. False
QUESTION 4Which of the following is not a form of nonmarket work?
a. working on your car at home
b. doing your laundry in a laundromat
c. making bread for a dinner at your sister's house
d. caring for your sister's children as a favor
e. babysitting for a fee
QUESTION 5The official poverty definition in the U.S. is having an income that
a. provides minimum biological needs
b. is less than three times the cost of a nutritionally adequate yet frugal diet
c. places the household in the bottom 20 percent of the income distribution
d. is less than the average U.S. welfare allowance
e. is approximately equal to the average household income of Canada
QUESTION 6Leisure is
a. subject to the law of diminishing marginal utility
b. usually considered an inferior good
c. a complementary good with nonmarket work
d. a complementary good with market work
e. an irrational way to spend valuable time
QUESTION 7A problem with official U.S. poverty data is that they
a. omit the rural poor
b. do not account for inflation
c. omit in-kind transfers such as food stamps
d. do not reflect changes in the cost of living
e. omit dividends and interest
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