Questions (see bottom of page for answers)
1. The regular pattern of income variation over a person's life is known as:
a) the distribution of income
b) the fiscal variation
c) the life cycle
2. In the UK and Europe, the poverty line is measured by earnings less than:
a) 35% of median income
b) 47% of median income
c) 60% of median income
d) 75% of median income
3. List 4 policies aimed to help the poor.
4. The name given to the claim that the government should aim
to maximise the well-being of the worst-off person in society is:
a) maximin criterion
b) libertarianism
c) utilitarianism
d) none of the above
5. Transfers to the poor given in the form of goods and services rather than cash are known as:
a) work incentives
b) donations
c) in-kind transfers
Answers: 1.c 2.c 3. minimum wage laws, social security, negative income taxes, in-kind transfers 4.a 5.c