Test Bank Economic Stress And Families Chapter 16

Chapter 16: Economic Stress and Families

Multiple Choice

1. Economic stress is described as

a. A nonnormative stressor due to unemployment

b. A chronic stressor due to unemployment

c. A permanent state, since once you have economic uncertainty, future concerns revolve around finances

d. A normative or nonnormative stressor that can be temporary or chronic

Answer location: Defining and Measuring Economic Stress, p. 340

Question type: MC

Cognitive Domain: Knowledge

2. Financial strain is related to economic stress in that

a. It is the objective measure of wealth compared to debt

b. It is the individual’s perception of the adequacy of their finances combined with worries and expectations regarding their future economic situation

c. Is it the emotional component of the chronic stress associated with low income and high debt

d. It is a temporary state that families experience when their financial savings dip below what they are comfortable with

Answer location: Defining and Measuring Economic Stress, p. 340

Question type: MC

Cognitive Domain: Comprehension

3. Some of the issues related to the shrinking middle class according to the chapter are all but

a. The Great Recession of 2007

b. Income inequality is actually growing with the rich becoming richer and the poor becoming poorer

c. Even though costs of things like child care and higher education are decreasing, families are not saving enough to cover these expenses

d. Costs of child care, higher education, health care are rising at a faster rate than middle-class incomes (which are stagnant)

Answer location: Economic Conditions of the American Family, p. 431

Question type MC

Cognitive Domain: Comprehension

4. The following is NOT true about employment insecurity

a. Employment is the most studied economic stressor for families

b. Job insecurity, while stressful has been shown to have minimal effects on health, relationship quality, and mental health concerns

c. Single-earner families are more vulnerable to employment insecurity

d. When the economy is healthy, families prosper

Answer location: Employment Instability and Insecurity: A Threat to Family Life, p. 342

Question type: MC

Cognitive Domain: Comprehension

5. Median family income is

a. A valuable measure of financial security

b. Counts cash as well as other assets

c. The same for single and two parent families

d. Is not a good measure of financial security because it does consider other assets

Answer location: Income: Family Livelihood, p. 343

Question type: MC

Cognitive Domain: Comprehension

6. A family’s net worth is based on their

a. Assets minus their debt

b. Prior year’s tax return

c. Their current year’s tax return

d. Their income minus their expenses

Answer location: Net Worth: A Measure of Family Wealth, p. 343

Question type: MC

Cognitive Domain: Knowledge

7. Home ownership

a. Is important because it helps families build wealth

b. Is a burden because of foreclosure risk

c. Is only associated with benefits for the wealthy

d. Is a luxury that seldom increases family well-being

Answer location: Home Ownership: The American Dream, p. 344

Question type: MC

Cognitive Domain: Comprehension

8. The most threatening type of debt to the long-term financial stability of families is

a. School loans

b. Mortgages

c. Credit card

d. All of the above

Answer location: Household Debt and Families: Borrowing Against the Future, p. 344

Question type: MC

Cognitive Domain: Knowledge

9. During 2013, people filed for bankruptcy

a. 100,00

b. 2,000,000

c. 17,000

d. 1,000,000

Answer location: Household Debt and Families: Borrowing Against the Future, p. 344

Question type: MC

Cognitive Domain: Knowledge

10. The importance of savings is greater than ever because

a. There are many more technological products crucial to daily life, and they are expensive

b. Families are becoming larger and are therefore more expensive to maintain

c. Higher education is so much more expensive, and so parents need to start saving right from their child’s birth

d. Benefits like pensions, health care, and retirement contributions are decreasing

Answer location: Economic Conditions of the American Family, p. 345

Question type: MC

Cognitive Domain: Comprehension

11. A model associated with the prediction that economic hardships will lead to child and family outcomes through adverse changes in personal mental health, marital quality, and parenting is referred to as

a. The Family Economic Stress Model

b. The Family financial hardship Model

c. The Stress Induced Economic Hardship Indicator

d. The ABC-X of Economic Stress

Answer location: The Family Economic Stress Model, p. 346

Question type: MC

Cognitive Domain: Knowledge

12. Economic stress in the family manifests itself directly by and indirectly by .

a. Bankruptcy, health issues

b. Influencing individual well-being, influencing family interactions

c. Influencing family vacations, influencing family budgets

d. Promoting arguments, promoting divorce

Answer location: The Family Economic Stress Model, p. 346

Question type: MC

Cognitive Domain: Comprehension

13. The family economic stress model indicates that

a. A couple’s premarital wealth impacts the quality of relationship, which predicts marital stability

b. A couple’s premarital wealth only impacts marital stability if one of the couple has significantly less to contribute than the other

c. A couple’s hard economic circumstances, increases financial strain, which increases psychological distress, which in turn negatively impacts marital stability

d. A couple’s contributions to the family’s wealth impacts the financial stability, which in turn, impacts the couple’s marital stability

Answer location: The Family Economic Stress Model, p. 347

Question type: MC

Cognitive Domain: Comprehension

14. Overall, economic stress contributes primarily to

a. Father’s negative health and mental health outcomes

b. Mother’s negative health and mental health outcomes

c. Children’s health and mental health outcomes

d. The entire family’s negative health and mental health outcomes

Answer location: The Family Economic Stress Model, p. 347

Question type: MC

Cognitive Domain: Application

15. If families are adaptable, cohesive, and have stable and clear authoritative patterns

a. The impact of economic hardships is more manageable

b. They are less likely to experience economic hardships

c. Their life savings will be higher than those with less functioning coping skills

d. Resiliency will be minimum because of the impact that economic hardships has on families

Answer location: Coping With Economic Stress, p. 347

Question type: MC

Cognitive Domain: Comprehension

16. Mr. and Mrs. Ramirez are 65 and have decided to retire. They have worked hard their whole lives and saved every penny so that they could have a comfortable retirement and try to leave money for their three children when they pass. This most closely describes which phase of the family economic life cycle?

a. Phase I

b. Phase II

c. Phase III

d. Phase IV

Answer location: Phase III. Living in Retirement and Planning for Intergenerational Transfers, p. 349

Question type: MC

Cognitive Domain: Application

17. The Thompsons are just starting out. Mr. Thompson relied heavily on his credit cards to get through his last year of graduate school and pay for childcare for their 2-year-old daughter. Mrs. Thompson worked full-time and paid the mortgage and the monthly bills. Their style of managing their economic situation is to take it as it comes. The Thompson’s are

a. In Phase I of the economic life cycle, and will most likely experience higher levels of economic stress because they don’t really have a plan to save and deal with debt.

b. In Phase II of the economic life cycle, and will most likely will have a good financial future

c. In Phase III of the economic life cycle, and are ready to begin to save for retirement because they are at their peak earning years

d. Are not in a phase of the economic life cycle yet because they are not both working

Answer location: Phase I. Family Formation: Starting a Credit and Debt Management Program, p. 349

Question type: MC

Cognitive Domain: Application/Analysis

18. As families struggle to retire the debt they have accumulated in the formation stage, families with children may encounter significant additional educational expenses as offspring approach college age. This is typical of

a. Phase I of the economic life cycle

b. Phase II of the economic life cycle

c. Phase III of the economic life cycle

d. Phase IV of the economic life cycle

Answer location: Phase II. Repaying Debt and Saving for Retirement, p. 349

Question type: MC

Cognitive Domain: Comprehension

19. Mandy has an MSW and works for a local agency that serves a population of older adults. She has always taken on projects fearlessly, is the first to volunteer to go on calls in questionable neighborhoods, and knows that she can accomplish jobs she takes on. Her program funding was cut, and she lost her job with only 2 days notice. The agency is sorry but cannot offer her another position. According to research on coping. Which statement best applies to Mandy’s situation? Mandy will

a. Most likely have a difficult job coping with this situation

b. Will most likely have mental health concerns due to the stress of losing her job

c. Is better prepared to cope because of her strong self-efficacy and sense of mastery

d. Will struggle with mental health concerns but eventually adjust to her situation

Answer location: Coping With Economic Stress, p. 348

Question type: MC

Cognitive Domain: Application

20. The family economic lifestyle cycle

a. Explains the cycle of economic stress resulting in bankruptcy

b. Explains the cycle of premarital savings to patterns of marital savings to the transmission of wealth are common stages of the lifecycle

c. Explains how the creation of a family results in financial strain, which impacts the transmission of wealth

d. Explains phases including family formation, repaying debt and saving for retirement, and retiring and planning for intergenerational transmission of wealth can assist with financial management over the life course

Answer location: Family Financial Planning as a Coping Resource, p. 349

Question type: MC

Cognitive Domain: Comprehension

True/False

1. Financial strain represents the subjective, psychological aspects of economic stress and is thought to be related to but independent of one’s income.

a. True

b. False

Answer location: Defining and Measuring Economic Stress, p. 340

Question type: TF

Cognitive Domain: Knowledge

2. Economic stress is a nonnormative stressor regardless of whether it is temporary or chronic.

a. True

b. False

Answer location: Defining Measuring Economic Stress, p. 340

Question type: TF

Cognitive Domain: Comprehension

3. Research has found that job loss is only associated with negative outcomes when it occurs to a single income family.

a. True

b. False

Answer location: Employment Instability and Insecurity: A Threat to Family Life, p. 342

Question type: TF

Cognitive Domain: Comprehension

4. A family’s net worth is defined as their employment income.

a. True

b. False

Answer location: Net Worth: A Measure of Family Wealth, p. 343

Question type: TF

Cognitive Domain: Knowledge

5. One of the factors that contribute to economic stress in families is debt associated with mortgages, which is the more problematic type of credit debt.

a. True

b. False

Answer location: Household Debt and Families: Borrowing Against the Future, p. 344

Question type: TF

Cognitive Domain: Application

6. When a family files for bankruptcy it is a sign of financial distress. However, the ability to secure education loans is not impacted.

a. True

b. False

Answer location: Household Debt and Families: Borrowing Against the Future, p. 345

Question type: TF

Cognitive Domain: Comprehension

7. The family economic stress model attributed to Conger and Elder (1994) predicts that economic hardship will lead to child and family outcomes through adverse changes in personal mental health, marital quality, and parenting.

a. True

b. False

Answer location: The Family Economic Stress Model, p. 346

Question type: TF

Cognitive Domain: Comprehension

8. Median family income has declined since 2007.

a. True

b. False

Answer location: Income: Family Livelihood, p. 342

Question type: TF

Cognitive Domain: Knowledge

Essay

1. What are the potential negative outcomes when an individual or family is unable to cope with economic stress?

2. Describe several economic indicators that measure a family’s economic status.

3. What are the three stages of the family economic lifestyle cycle, and what challenges do families face at each stage? What can families do to plan at each stage?

a. Answers may include:

• Phase I. Family Formation: Starting a Credit and Debt Management Program
• Phase II. Repaying Debt and Saving for Retirement
• Phase III. Living in Retirement and Planning for Intergenerational Transfers

Answer location: Family Financial Planning as a Coping Resource, pp.348-349

Question type: ESS

Cognitive Domain: Analysis