Test Prep For AP® Courses
Which statement best describes the relationship between household composition and poverty rates in the United States today?
- African Americans have slightly higher rates of poverty than Hispanics.
- Asians have the lowest rates of poverty.
- The bottom 99 percent of the population have historically low wealth.
- Households with a single mother and no father have a higher rate of poverty than households with both the father and mother present.
- Households with a father and no mother have the highest rate of poverty.
Which of the following is NOT an example of a safety net program of welfare?
- Temporary Assistance for Needy Families
- Supplemental Nutrition Assistance Program
- earned income tax credit
The following table contains information about how income is distributed in three countries: Country A, Country B, and Country C.
|Cumulative % of Income|
|Income Quintile||Country A||Country B||Country C|
|Bottom 20% of households||5%||10%||15%|
|Bottom 40% of households||8%||20%||30%|
|Bottom 60% of households||15%||40%||50%|
|Bottom 80% of households||35%||65%||75%|
|100% of households||100%||100%||100%|
- On the same graph, plot Lorenz curves for each country, along with the line of perfect equality. Clearly label all lines drawn.
- In which country is income distributed most equally?
- In which country is income distributed most unequally?
- List and explain two welfare programs that the country you identified in (c). might use to reduce inequality.