1. For each of the following pairs of population groups, indicate which group has a higher poverty rate:
_________ White, _________ Hispanic
_________ White, _________ Asian_________ Married couple_________, Female-headed household
_________ Under 18 years_________, 65 years and older
2. Government spending and tax policies reduce the overall poverty rate from roughly _________ (25/20/15/10) percent to roughly _________ (15/10/5/2) percent.
3. Cash aid to the poor makes up roughly _________ (90/50/30/20) percent of the total spending on means tested programs.
4. A low-income person receiving cash aid under TANF receives a fixed sum per month for an unlimited length of time. _________ (True/False)
5. Job applicants with white-sounding names were _________ (2/20/50) percent more likely to be called for interviews than those whose names suggested an African-American background.
6. Quick Signals from High School. Consider the application, Lakisha Washington versus Emily Walsh. According to the researcher, [Employers] want a quick signal whether the applicant seems suitable. Suppose a firm hiring workers cannot distinguish between high-productivity and low-productivity applicants, but the firm knows whether an applicant graduated from high school H, where the average achievement level is relatively high, or high school L, where the average achievement level is relatively low (Related to Application 4 on page 699.)
a. If the firm will hire one of two applicants, one from high school H and a second from high school L, which is the better choice?
b. What insights does this exercise provide about why firms are more likely to interview and hire applicants with white-sounding names?