Test Prep For AP® Courses


Which statement best describes the relationship between household composition and poverty rates in the United States today?

  1. African Americans have slightly higher rates of poverty than Hispanics.
  2. Asians have the lowest rates of poverty.
  3. The bottom 99 percent of the population have historically low wealth.
  4. Households with a single mother and no father have a higher rate of poverty than households with both the father and mother present.
  5. 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?

  1. Medicaid
  2. Temporary Assistance for Needy Families
  3. Supplemental Nutrition Assistance Program
  4. Medicare
  5. 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%
Table 14.10
A graph shows cumulative share of income on the y-axis vs. income quintiles on the x-axis. Plots for perfect equality and for two different years (1980 and 2011) are shown.
Figure 14.11
  1. On the same graph, plot Lorenz curves for each country, along with the line of perfect equality. Clearly label all lines drawn.
  2. In which country is income distributed most equally?
  3. In which country is income distributed most unequally?
  4. List and explain two welfare programs that the country you identified in (c). might use to reduce inequality.