Question 1

The tax system at both the federal and provincial levels is

Accepted Answer

A) progressive. 
B) regressive. 
C) proportional. 
D) a combination of proportional and regressive. 
E) a combination of progressive and regressive. 
A) progressive. 
B) regressive. 
C) proportional. 
D) a combination of proportional and regressive. 
E) a combination of progressive and regressive.

Question 2

Discrimination ________ workers in the group being discriminated against and ________ workers in the group being favoured.

Accepted Answer

A) decreases the supply of;increases the supply of 
B) decreases the demand for and the supply of;increases the demand for and the supply of 
C) does not change the demand for;increases the demand for 
D) decreases the demand for;increases the demand for 
E) decreases the demand for;does not change the demand for 
A) decreases the supply of;increases the supply of 
B) decreases the demand for and the supply of;increases the demand for and the supply of 
C) does not change the demand for;increases the demand for 
D) decreases the demand for;increases the demand for 
E) decreases the demand for;does not change the demand for

Question 3

Joe earns $100,000 per year.He pays a tax rate of 28 percent on the first $60,000 of income and a tax rate of 15 percent on income above $60,000.This tax system is an example of a ________ income tax.

Accepted Answer

A) progressive 
B) proportional 
C) regressive 
D) flat 
E) Both B and D are correct. 
A) progressive 
B) proportional 
C) regressive 
D) flat 
E) Both B and D are correct.

Question 4

Use the figure below to answer the following questions.   Figure 18.3.1
-Refer only to the information in Figure 18.3.1.At any given wage rate,

Accepted Answer

A) more hours of low-skilled labour will be demanded than high-skilled labour. 
B) more hours of high-skilled labour will be demanded than low-skilled labour. 
C) more hours of low-skilled labour will be supplied than high-skilled labour. 
D) more hours of high-skilled labour will be supplied than low-skilled labour. 
E) both B and C are correct. 
A) more hours of low-skilled labour will be demanded than high-skilled labour. 
B) more hours of high-skilled labour will be demanded than low-skilled labour. 
C) more hours of low-skilled labour will be supplied than high-skilled labour. 
D) more hours of high-skilled labour will be supplied than low-skilled labour. 
E) both B and C are correct.

Question 5

Use the figure below to answer the following questions.   Figure 18.3.1
-Refer to Figure 18.3.1.Choose the correct statement.

Accepted Answer

A) The elasticity of demand for high-skilled labourers is less than the elasticity of demand for low-skilled labourers. 
B) High-skilled labourers receive a lower wage than low-skilled labourers. 
C) High-skilled labourers receive a greater wage than low-skilled labourers. 
D) The vertical distance between the two demand curves is the compensation for the cost of acquiring human capital. 
E) The vertical distance between the two curves is the present value of human capital. 
A) The elasticity of demand for high-skilled labourers is less than the elasticity of demand for low-skilled labourers. 
B) High-skilled labourers receive a lower wage than low-skilled labourers. 
C) High-skilled labourers receive a greater wage than low-skilled labourers. 
D) The vertical distance between the two demand curves is the compensation for the cost of acquiring human capital. 
E) The vertical distance between the two curves is the present value of human capital.

Question 6

In 2015,the mean household income in Canada was

Accepted Answer

A) $69,100. 
B) $56,000. 
C) $39,999. 
D) $30,000. 
E) $65,000. 
A) $69,100. 
B) $56,000. 
C) $39,999. 
D) $30,000. 
E) $65,000.

Question 7

Use the figure below to answer the following questions.   Figure 18.3.1
-The vertical distance between the two supply curves in Figure 18.3.1

Accepted Answer

A) is the compensation for the cost of acquiring human capital. 
B) is the VMP of skill. 
C) is the result of discrimination against low-skilled workers. 
D) is the result of subsidies for high-skilled workers. 
E) will disappear if there is free entry in the high-skilled market. 
A) is the compensation for the cost of acquiring human capital. 
B) is the VMP of skill. 
C) is the result of discrimination against low-skilled workers. 
D) is the result of subsidies for high-skilled workers. 
E) will disappear if there is free entry in the high-skilled market.

Question 8

In the absence of government policies to redistribute income,the income distribution will be the

Accepted Answer

A) market distribution. 
B) unfair distribution. 
C) capitalist distribution. 
D) efficient distribution. 
E) line of equality. 
A) market distribution. 
B) unfair distribution. 
C) capitalist distribution. 
D) efficient distribution. 
E) line of equality.

Question 9

Use the figure below to answer the following questions.   Figure 18.3.5
-Refer to Figure 18.3.5.This figure shows the labour supply curves and the value of marginal product curves for high-skilled and low-skilled workers.The equilibrium wage rate for high-skilled workers is

Accepted Answer

A) $15 an hour. 
B) $12 an hour. 
C) $18 an hour. 
D) $24 an hour. 
E) $21 an hour. 
A) $15 an hour. 
B) $12 an hour. 
C) $18 an hour. 
D) $24 an hour. 
E) $21 an hour.

Question 10

The low-income cutoff level is

Accepted Answer

A) a level of housing and food provided by the government. 
B) a fixed real income used to determine whether or not a household may qualify for welfare. 
C) the income level below which a family normally spends 73.6 percent or more of its income on food,shelter,and clothing. 
D) the income level below which a family normally spends 63.6 percent or more of its income on food,shelter,and clothing. 
E) a level of income below which starvation occurs. 
A) a level of housing and food provided by the government. 
B) a fixed real income used to determine whether or not a household may qualify for welfare. 
C) the income level below which a family normally spends 73.6 percent or more of its income on food,shelter,and clothing. 
D) the income level below which a family normally spends 63.6 percent or more of its income on food,shelter,and clothing. 
E) a level of income below which starvation occurs.

Question 11

Economists who have compared the incomes of never-married men and never-married women have found that with equal amounts of human capital

Accepted Answer

A) men earn significantly more than women. 
B) women earn significantly more than men. 
C) the wages of the two groups are equal. 
D) men specialize more in home production. 
E) women tend to undertake more education. 
A) men earn significantly more than women. 
B) women earn significantly more than men. 
C) the wages of the two groups are equal. 
D) men specialize more in home production. 
E) women tend to undertake more education.

Question 12

The income Lorenz curve illustrates the distribution of income by graphing the

Accepted Answer

A) cumulative percentage of income received against the cumulative percentage of households. 
B) total income earned by each quintile of households. 
C) wealth earned by a cumulative percentage of households. 
D) cumulative frequency of specific incomes. 
E) percentage change in income for a percentage change in population. 
A) cumulative percentage of income received against the cumulative percentage of households. 
B) total income earned by each quintile of households. 
C) wealth earned by a cumulative percentage of households. 
D) cumulative frequency of specific incomes. 
E) percentage change in income for a percentage change in population.

Question 13

The distribution of world income is ________ the distribution of Canadian income.

Accepted Answer

A) more equal than 
B) equal to 
C) not comparable to 
D) equal to the distribution of Canadian wealth and more equal than 
E) less equal than 
A) more equal than 
B) equal to 
C) not comparable to 
D) equal to the distribution of Canadian wealth and more equal than 
E) less equal than

Question 14

Among Canada,Finland,and South Africa,income is distributed most equally in ________ and least equally in ________.

Accepted Answer

A) South Africa;Finland 
B) Canada;South Africa 
C) South Africa;Canada 
D) Finland;Canada 
E) Finland;South Africa 
A) South Africa;Finland 
B) Canada;South Africa 
C) South Africa;Canada 
D) Finland;Canada 
E) Finland;South Africa

Question 15

Refer to the table below to answer the following questions.
Table 18.4.2
  
-Refer to Table 18.4.2.The table shows three tax payment schemes.Which tax payment plan has no effect on inequality?

Accepted Answer

A) Plan B 
B) Plan C 
C) Plan A 
D) Plan A and Plan C 
E) Plan B and Plan C 
A) Plan B 
B) Plan C 
C) Plan A 
D) Plan A and Plan C 
E) Plan B and Plan C

Question 16

Use the figure below to answer the following questions.   Figure 18.1.1
-Refer to Figure 18.1.1.The middle 20 percent of households receive what share of total income?

Accepted Answer

A) 20 percent 
B) 25 percent 
C) 35 percent 
D) 15 percent 
E) 60 percent 
A) 20 percent 
B) 25 percent 
C) 35 percent 
D) 15 percent 
E) 60 percent

Question 17

If the average tax rate decreases as income increases,the income tax is

Accepted Answer

A) progressive. 
B) proportional. 
C) negative. 
D) regressive. 
E) redistributive. 
A) progressive. 
B) proportional. 
C) negative. 
D) regressive. 
E) redistributive.

Question 18

Use the figure below to answer the following questions.   Figure 18.3.6
-Refer to Figure 18.3.6.If this is the market for a group of workers who are discriminated against by customers and point A represents the equilibrium without discrimination,which point represents the equilibrium for the workers who are discriminated against?

Accepted Answer

A) D 
B) B 
C) I 
D) C 
E) H 
A) D 
B) B 
C) I 
D) C 
E) H

Question 19

Between 1970 and 2005,the world Gini ratio ________ indicating ________ in the world distribution of income.

Accepted Answer

A) fell;greater equality 
B) fell;greater inequality 
C) did not change;no change 
D) rose;greater equality 
E) rose;greater inequality 
A) fell;greater equality 
B) fell;greater inequality 
C) did not change;no change 
D) rose;greater equality 
E) rose;greater inequality

Question 20

A generation that is wealthy and leaves assets to another generation that is not wealthy

Accepted Answer

A) increases the inequality of the income distribution. 
B) decreases the inequality of the income distribution. 
C) does not change the distribution of income. 
D) proves that inheritance taxes are needed. 
E) is improving efficiency. 
A) increases the inequality of the income distribution. 
B) decreases the inequality of the income distribution. 
C) does not change the distribution of income. 
D) proves that inheritance taxes are needed. 
E) is improving efficiency.

The tax system at both the federal and provincial levels is

Discrimination workers in the group being discriminated against and workers in the group being favoured.

Joe earns $100,000 per year.He pays a tax rate of 28 percent on the first $60,000 of income and a tax rate of 15 percent on income above $60,000.This tax system is an example of a ________ income tax.

Use the figure below to answer the following questions. Figure 18.3.1 -Refer only to the information in Figure 18.3.1.At any given wage rate,

Use the figure below to answer the following questions. Figure 18.3.1 -Refer to Figure 18.3.1.Choose the correct statement.

In 2015,the mean household income in Canada was

Use the figure below to answer the following questions. Figure 18.3.1 -The vertical distance between the two supply curves in Figure 18.3.1

In the absence of government policies to redistribute income,the income distribution will be the

Use the figure below to answer the following questions. Figure 18.3.5 -Refer to Figure 18.3.5.This figure shows the labour supply curves and the value of marginal product curves for high-skilled and low-skilled workers.The equilibrium wage rate for high-skilled workers is

The low-income cutoff level is

Economists who have compared the incomes of never-married men and never-married women have found that with equal amounts of human capital

The income Lorenz curve illustrates the distribution of income by graphing the

The distribution of world income is ________ the distribution of Canadian income.

Among Canada,Finland,and South Africa,income is distributed most equally in and least equally in .

Refer to the table below to answer the following questions. Table 18.4.2 -Refer to Table 18.4.2.The table shows three tax payment schemes.Which tax payment plan has no effect on inequality?

Use the figure below to answer the following questions. Figure 18.1.1 -Refer to Figure 18.1.1.The middle 20 percent of households receive what share of total income?

If the average tax rate decreases as income increases,the income tax is

Between 1970 and 2005,the world Gini ratio indicating in the world distribution of income.

A generation that is wealthy and leaves assets to another generation that is not wealthy

What Is Economics

The Economic Problem

Demand and Supply

Elasticity

Efficiency and Equity

Government Actions in Markets

Global Markets in Action

Utility and Demand

Possibilities, preferences, and Choices

Output and Costs

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Externalities

Public Goods and Common Resources

Markets for Factors of Production

Filters

Exam 18: Economic Inequality

The tax system at both the federal and provincial levels is

Discrimination ________ workers in the group being discriminated against and ________ workers in the group being favoured.

Joe earns $100,000 per year.He pays a tax rate of 28 percent on the first $60,000 of income and a tax rate of 15 percent on income above $60,000.This tax system is an example of a ________ income tax.

Use the figure below to answer the following questions. Figure 18.3.1 -Refer only to the information in Figure 18.3.1.At any given wage rate,

Use the figure below to answer the following questions. Figure 18.3.1 -Refer to Figure 18.3.1.Choose the correct statement.

In 2015,the mean household income in Canada was

Use the figure below to answer the following questions. Figure 18.3.1 -The vertical distance between the two supply curves in Figure 18.3.1

In the absence of government policies to redistribute income,the income distribution will be the

Use the figure below to answer the following questions. Figure 18.3.5 -Refer to Figure 18.3.5.This figure shows the labour supply curves and the value of marginal product curves for high-skilled and low-skilled workers.The equilibrium wage rate for high-skilled workers is

The low-income cutoff level is

Economists who have compared the incomes of never-married men and never-married women have found that with equal amounts of human capital

The income Lorenz curve illustrates the distribution of income by graphing the

The distribution of world income is ________ the distribution of Canadian income.

Among Canada,Finland,and South Africa,income is distributed most equally in ________ and least equally in ________.

Refer to the table below to answer the following questions. Table 18.4.2 -Refer to Table 18.4.2.The table shows three tax payment schemes.Which tax payment plan has no effect on inequality?

Use the figure below to answer the following questions. Figure 18.1.1 -Refer to Figure 18.1.1.The middle 20 percent of households receive what share of total income?

If the average tax rate decreases as income increases,the income tax is

Between 1970 and 2005,the world Gini ratio ________ indicating ________ in the world distribution of income.

A generation that is wealthy and leaves assets to another generation that is not wealthy

What Is Economics

The Economic Problem

Demand and Supply

Elasticity

Efficiency and Equity

Government Actions in Markets

Global Markets in Action

Utility and Demand

Possibilities, preferences, and Choices

Output and Costs

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Externalities

Public Goods and Common Resources

Markets for Factors of Production

Filters

Discrimination workers in the group being discriminated against and workers in the group being favoured.

Among Canada,Finland,and South Africa,income is distributed most equally in and least equally in .

Between 1970 and 2005,the world Gini ratio indicating in the world distribution of income.