Question 1

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

Accepted Answer

A) 40 percent 
B) 60 percent 
C) 20 percent 
D) 5 percent 
E) 10 percent 
A) 40 percent 
B) 60 percent 
C) 20 percent 
D) 5 percent 
E) 10 percent

Question 2

The income distribution in Canada is

Accepted Answer

A) bell-shaped. 
B) positively skewed. 
C) negatively skewed. 
D) uniform. 
E) unfair. 
A) bell-shaped. 
B) positively skewed. 
C) negatively skewed. 
D) uniform. 
E) unfair.

Question 3

Use the table below to answer the following questions.
Table 18.4.1  
-In Table 18.4.1,which tax plan is proportional?

Accepted Answer

A) Plan A 
B) Plan B 
C) Plan C 
D) Plan D 
E) impossible to calculate without additional information 
A) Plan A 
B) Plan B 
C) Plan C 
D) Plan D 
E) impossible to calculate without additional information

Question 4

The Gini ratio for a perfectly equal distribution of income is

Accepted Answer

A) equal to zero. 
B) equal to 1. 
C) equal to 100. 
D) equal to infinity. 
E) negative. 
A) equal to zero. 
B) equal to 1. 
C) equal to 100. 
D) equal to infinity. 
E) negative.

Question 5

The distribution of annual income

Accepted Answer

A) understates the degree of inequality because it does not take into account the family's stage in its life cycle. 
B) understates the degree of inequality because it does not take into account the distribution of human capital. 
C) overstates the degree of inequality because it does not take into account the family's stage in its life cycle. 
D) overstates the degree of inequality because it does not take into account the distribution of human capital. 
E) is an accurate measure of the degree of inequality. 
A) understates the degree of inequality because it does not take into account the family's stage in its life cycle. 
B) understates the degree of inequality because it does not take into account the distribution of human capital. 
C) overstates the degree of inequality because it does not take into account the family's stage in its life cycle. 
D) overstates the degree of inequality because it does not take into account the distribution of human capital. 
E) is an accurate measure of the degree of inequality.

Question 6

In Canada,the highest income tax rates are in

Accepted Answer

A) Quebec. 
B) Manitoba. 
C) Alberta. 
D) Ontario. 
E) British Columbia. 
A) Quebec. 
B) Manitoba. 
C) Alberta. 
D) Ontario. 
E) British Columbia.

Question 7

The three main avenues through which the government redistributes income are

Accepted Answer

A) subsidized services,sales taxes,and user fees. 
B) sales taxes,income maintenance programs,and income taxes. 
C) income maintenance programs,user fees,and welfare programs. 
D) subsidized services,income taxes,and income maintenance programs. 
E) welfare programs,income taxes,and income maintenance programs. 
A) subsidized services,sales taxes,and user fees. 
B) sales taxes,income maintenance programs,and income taxes. 
C) income maintenance programs,user fees,and welfare programs. 
D) subsidized services,income taxes,and income maintenance programs. 
E) welfare programs,income taxes,and income maintenance programs.

Question 8

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.If there is an increase in the supply of high-skilled workers and the supply of high-skilled workers is now equal to the supply of low-skilled workers,then

Accepted Answer

A) wages paid to high-skilled workers would fall to $12 an hour. 
B) wages paid to high-skilled workers would fall to $15 an hour. 
C) wages paid to high-skilled workers would fall to $18 an hour. 
D) there would be no change in the wages of high-skilled workers,because high-skilled workers always earn more than low-skilled workers. 
E) there would be no change in the wages of high-skilled workers,because their value of marginal product is unchanged. 
A) wages paid to high-skilled workers would fall to $12 an hour. 
B) wages paid to high-skilled workers would fall to $15 an hour. 
C) wages paid to high-skilled workers would fall to $18 an hour. 
D) there would be no change in the wages of high-skilled workers,because high-skilled workers always earn more than low-skilled workers. 
E) there would be no change in the wages of high-skilled workers,because their value of marginal product is unchanged.

Question 9

Between 1976 and 2015,the Canadian Gini ratio ________,which means income inequality in Canada ________.

Accepted Answer

A) increased;increased 
B) increased;decreased 
C) increased;did not change 
D) decreased;decreased 
E) decreased;did not change 
A) increased;increased 
B) increased;decreased 
C) increased;did not change 
D) decreased;decreased 
E) decreased;did not change

Question 10

Incomes in China and India are a small fraction of incomes in Canada.But incomes in China and India are growing at more than twice the rate of those in Canada.As a result,the inequality in income between the people in China and India and people in Canada is ________ and the world Gini ratio is ________.

Accepted Answer

A) staying relatively constant;remaining constant 
B) increasing in some years and decreasing in other years;remaining constant 
C) decreasing;decreasing 
D) increasing;increasing 
E) decreasing;increasing 
A) staying relatively constant;remaining constant 
B) increasing in some years and decreasing in other years;remaining constant 
C) decreasing;decreasing 
D) increasing;increasing 
E) decreasing;increasing

Question 11

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 low-skilled workers is

Accepted Answer

A) $9 an hour. 
B) $21 an hour. 
C) $18 an hour. 
D) $15 an hour. 
E) $12 an hour. 
A) $9 an hour. 
B) $21 an hour. 
C) $18 an hour. 
D) $15 an hour. 
E) $12 an hour.

Question 12

Poverty is

Accepted Answer

A) an income below the national average income level. 
B) an income below the national median income level. 
C) a state in which a family's income is too low to be able to buy the quantities of food,shelter,and clothing that are deemed necessary. 
D) the income earned by the poorest 20 percent of households. 
E) a state in which a family spends more than 50 percent of its income on food,shelter,and clothing. 
A) an income below the national average income level. 
B) an income below the national median income level. 
C) a state in which a family's income is too low to be able to buy the quantities of food,shelter,and clothing that are deemed necessary. 
D) the income earned by the poorest 20 percent of households. 
E) a state in which a family spends more than 50 percent of its income on food,shelter,and clothing.

Question 13

Use the table below to answer the following questions.
Table 18.4.1  
-In Table 18.4.1,which tax plan is progressive?

Accepted Answer

A) Plan A 
B) Plan B 
C) Plan C 
D) Plan D 
E) impossible to calculate without additional information 
A) Plan A 
B) Plan B 
C) Plan C 
D) Plan D 
E) impossible to calculate without additional information

Question 14

The demand for low-skilled labour is derived from the

Accepted Answer

A) work left undone by the high-skilled workers. 
B) marginal cost of production. 
C) lower wage rate of the labour. 
D) supply of the high-skilled labourers. 
E) value of marginal product of low-skilled labour. 
A) work left undone by the high-skilled workers. 
B) marginal cost of production. 
C) lower wage rate of the labour. 
D) supply of the high-skilled labourers. 
E) value of marginal product of low-skilled labour.

Question 15

One criticism of social security programs such as the Guaranteed Income Supplement is that

Accepted Answer

A) it promotes efficiency rather than equity. 
B) it helps equity but hurts efficiency. 
C) it gives too much money to the elderly. 
D) it gives too much money to the poor. 
E) it gives too much money to the rich. 
A) it promotes efficiency rather than equity. 
B) it helps equity but hurts efficiency. 
C) it gives too much money to the elderly. 
D) it gives too much money to the poor. 
E) it gives too much money to the rich.

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

The income distribution in Canada is

Use the table below to answer the following questions. Table 18.4.1 -In Table 18.4.1,which tax plan is proportional?

The Gini ratio for a perfectly equal distribution of income is

The distribution of annual income

In Canada,the highest income tax rates are in

The three main avenues through which the government redistributes income are

Between 1976 and 2015,the Canadian Gini ratio ,which means income inequality in Canada .

Incomes in China and India are a small fraction of incomes in Canada.But incomes in China and India are growing at more than twice the rate of those in Canada.As a result,the inequality in income between the people in China and India and people in Canada is and the world Gini ratio is .

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 low-skilled workers is

Poverty is

Use the table below to answer the following questions. Table 18.4.1 -In Table 18.4.1,which tax plan is progressive?

The demand for low-skilled labour is derived from the

One criticism of social security programs such as the Guaranteed Income Supplement is that

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

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

The income distribution in Canada is

Use the table below to answer the following questions. Table 18.4.1 -In Table 18.4.1,which tax plan is proportional?

The Gini ratio for a perfectly equal distribution of income is

The distribution of annual income

In Canada,the highest income tax rates are in

The three main avenues through which the government redistributes income are

Between 1976 and 2015,the Canadian Gini ratio ________,which means income inequality in Canada ________.

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 low-skilled workers is

Poverty is

Use the table below to answer the following questions. Table 18.4.1 -In Table 18.4.1,which tax plan is progressive?

The demand for low-skilled labour is derived from the

One criticism of social security programs such as the Guaranteed Income Supplement is that

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

Between 1976 and 2015,the Canadian Gini ratio ,which means income inequality in Canada .