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31.The fact that the poverty line does not account for day-care costs suggests that it is set too

A)high and the poverty rate is therefore understated.

B)high and the poverty rate is therefore overstated.

C)low and the poverty rate is therefore understated.

D)low and the poverty rate is therefore overstated.

32.Ignoring the issue of whether the CPI overstates the cost of living generally, the fact that the poverty line is adjusted using the overall CPI to adjust for overall inflation means thatif the costs of necessities rises

A)faster than the overall CPI the poverty line is overstated.

B)faster than the overall CPI the poverty line is understated.

C)slower than the overall CPI the poverty rate is understated.

D)slower than the overall CPI the poverty rate is overstated.

33.Because it costs more to live in cities than it does to live in rural areas the

A)poverty line is set too high in cities and too low in rural areas.

B)poverty line is set too low in cities and too high in rural areas.

C)poverty rate is overstated in cities and understated in rural areas.

D)true poverty rate is higher than the government reports it to be.

34.Because of an increase in the work-force participation rate for women, the availability of uncompensated child-care (free care by aunts, sisters, and grandmothers) has become less available to poor women so as a consequence the fact that child-care must now be paid for suggests that the

A)poverty line should be revised upward.

B)poverty line should be revised downward.

C)poverty gap is overstated.

D)poverty rate is overstated.

35.Because of an increase in the work-force participation rate for women, the availability of uncompensated child-care (free care by aunts, sisters, and grandmothers) has become less available to poor women so as a consequence the fact that child-care must now be paid for suggests that the

A)poverty is not a problem.

B)poverty line should be revised downward.

C)poverty gap is overstated.

D)poverty rate is understated.

36.Which of the following programs are in-kind?

A)AFDC/TANF

B)EITC

C)WIC

D)AFDC/TANF and EITC

37.Which of the following programs are in-cash?

A)AFDC/TANF

B)EITC

C)WIC

D)AFDC/TANF and EITC

38.In-cash transfers differ from in-kind transfers in that

A)the former offers greater control over spending by the poor on inappropriate things.

B)the former is more cost-effective and less bureaucratic.

C)the former is more certain to target children effectively.

D)none of these, the two are identical.

39.Which of the following is targeted narrowly to pregnant women and their infant children?

A)AFDC

B)TANF

C)WIC

D)SNAP (Food Stamps)

40.Which of the following is the most costly program for the poor?

A)Medicaid

B)AFDC/TANF

C)WIC

D)SNAP  (Food stamps)

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