Question 1

-In the figure above, the curve going through point A represents

Accepted Answer

A)  an upward-sloping demand curve. 
B)  the line of equality. 
C)  the wage curve. 
D)  the Lorenz curve. 
A)  an upward-sloping demand curve. 
B)  the line of equality. 
C)  the wage curve. 
D)  the Lorenz curve.

Question 2

An increase in income equality causes the Lorenz curve to become more bowed away from the line of equality.

Accepted Answer

A) True 
 B)False

Question 3

What is "human capital"? How is it important in the determination of a worker's wage rate?

Accepted Answer

Human capital is the skill, education, a

Question 4

Information technologies are a ________ for low-skilled labor and a ________ for high-skilled labor.

Accepted Answer

A)  substitute; substitute 
B)  complement; complement 
C)  substitute; complement 
D)  complement; substitute 
A)  substitute; substitute 
B)  complement; complement 
C)  substitute; complement 
D)  complement; substitute

Question 5

A firm that discriminates has ________ a nonprejudiced firm and ________.

Accepted Answer

A)  the same costs as; competes most often with imported goods and services 
B)  the same costs as; can successfully maximize profit in a competitive industry 
C)  lower costs than; drives other firms out of a competitive industry 
D)  higher costs than; cannot survive in a competitive industry 
A)  the same costs as; competes most often with imported goods and services 
B)  the same costs as; can successfully maximize profit in a competitive industry 
C)  lower costs than; drives other firms out of a competitive industry 
D)  higher costs than; cannot survive in a competitive industry

Question 6

In the country of Konswano there are 4 people. Each person lives for 40 years. In their first 10 years, they earn no income. In the next 20 years, they earn $40,000 per year and in the last 10 years they earn no income. Each year their consumption is $20,000. If the people in Konswano are aged 5, 15, 25, and 35, then the distribution of annual income ________.

Accepted Answer

A)  is equal to the line of equality 
B)  is above the line of equality 
C)  has greater inequality than when everyone is 25 years old 
D)  has greater equality than when everyone is 25 years old 
A)  is equal to the line of equality 
B)  is above the line of equality 
C)  has greater inequality than when everyone is 25 years old 
D)  has greater equality than when everyone is 25 years old

Question 7

-In the figure above, the richest 20 percent of households receive ________ of total income.

Accepted Answer

A)  55 percent 
B)  45 percent 
C)  80 percent 
D)  60 percent 
A)  55 percent 
B)  45 percent 
C)  80 percent 
D)  60 percent

Question 8

What do the Lorenz curves for wealth and income in the United States look like? Which is closer to the line of equality?

Accepted Answer

Both the Lorenz curve for wealth and the

Question 9

Unemployment compensation is an example of

Accepted Answer

A)  a subsidized service. 
B)  a regressive income program. 
C)  a Social Security benefit. 
D)  an income maintenance program. 
A)  a subsidized service. 
B)  a regressive income program. 
C)  a Social Security benefit. 
D)  an income maintenance program.

Question 10

-In the figure above, if income were distributed equally across all households, the richest 20 percent of households would receive ________ of total income.

Accepted Answer

A)  45 percent 
B)  25 percent 
C)  20 percent 
D)  15 percent 
A)  45 percent 
B)  25 percent 
C)  20 percent 
D)  15 percent

Question 11

-The above figure shows the Lorenz curve for wealth for the nation of Rusha. What percent of wealth is owned by the poorest quintile?

Accepted Answer

A)  0 percent 
B)  5 percent 
C)  20 percent 
D)  35 percent 
A)  0 percent 
B)  5 percent 
C)  20 percent 
D)  35 percent

Question 12

-The above figure shows the Lorenz curves for four different countries. Which country has the most unequal distribution of income?

Accepted Answer

A)  country A 
B)  country B 
C)  country C 
D)  country D 
A)  country A 
B)  country B 
C)  country C 
D)  country D

Question 13

A flat-rate income tax is also called ________.

Accepted Answer

A)  an excise tax 
B)  a property tax 
C)  a proportional income tax 
D)  a constant rate tax 
A)  an excise tax 
B)  a property tax 
C)  a proportional income tax 
D)  a constant rate tax

Question 14

Globalization means that firms recruit top talent from the global talent pool. Globalization means that the payoffs won by the contest winners ________.

Accepted Answer

A)  increase in size 
B)  do not change in size 
C)  might increase, decrease, or not change depending on whether the demand for contests changes by more than, less than, or the same amount as the supply of contests. 
D)  decrease in size 
A)  increase in size 
B)  do not change in size 
C)  might increase, decrease, or not change depending on whether the demand for contests changes by more than, less than, or the same amount as the supply of contests. 
D)  decrease in size

Question 15

Income is distributed ________ equally than wealth and the Lorenz curve for ________ lies closer to the line of equality.

Accepted Answer

A)  more; income 
B)  more; wealth 
C)  less; income 
D)  less; wealth 
A)  more; income 
B)  more; wealth 
C)  less; income 
D)  less; wealth

Question 16

-The above figure shows the supply and demand curves for high-skilled and low-skilled labor. The figure shows that high-skilled workers earn a wage rate greater than low-skilled workers because

Accepted Answer

A)  the supply of high-skilled labor is greater than the supply of low-skilled labor. 
B)  high-skilled labor has a lower value of marginal product. 
C)  of both the cost of acquiring skills and the differences in the value of marginal products. 
D)  of discrimination. 
A)  the supply of high-skilled labor is greater than the supply of low-skilled labor. 
B)  high-skilled labor has a lower value of marginal product. 
C)  of both the cost of acquiring skills and the differences in the value of marginal products. 
D)  of discrimination.

Question 17

In the United States

Accepted Answer

A)  there are more households with incomes below the mean income than above the mean income. 
B)  there are more households with incomes above the mean income than below the mean income. 
C)  the mode income equals the mean income. 
D)  the income distribution is bell shaped. 
A)  there are more households with incomes below the mean income than above the mean income. 
B)  there are more households with incomes above the mean income than below the mean income. 
C)  the mode income equals the mean income. 
D)  the income distribution is bell shaped.

Question 18

-The government in the country of Zappoo is trying to decide which tax plan to implement. The table above shows three alternative plans. If the government decides to implement a progressive income tax, it will implement tax plan ________.

Accepted Answer

A)  A 
B)  B 
C)  C 
D)  A or B 
A)  A 
B)  B 
C)  C 
D)  A or B

Question 19

Specialization of productive activity between men and women might explain why

Accepted Answer

A)  a married woman earns less than a married man. 
B)  a never-married man earns more than a never-married woman. 
C)  a never-married man earns the same as a married man. 
D)  None of the above answers is correct. 
A)  a married woman earns less than a married man. 
B)  a never-married man earns more than a never-married woman. 
C)  a never-married man earns the same as a married man. 
D)  None of the above answers is correct.

Question 20

The demand curve for high-skilled labor lies to the right of the demand curve for low-skilled labor because

Accepted Answer

A)  there are more high-skilled workers than low-skilled workers. 
B)  high-skilled workers require more compensation to convince them to work than do low-skilled workers. 
C)  high-skilled labor is more productive than low-skilled labor. 
D)  firms need not be concerned with the minimum wage in the market for high-skilled labor. 
A)  there are more high-skilled workers than low-skilled workers. 
B)  high-skilled workers require more compensation to convince them to work than do low-skilled workers. 
C)  high-skilled labor is more productive than low-skilled labor. 
D)  firms need not be concerned with the minimum wage in the market for high-skilled labor.

Exam 19: Economic Inequality

-In the figure above, the curve going through point A represents

An increase in income equality causes the Lorenz curve to become more bowed away from the line of equality.

What is "human capital"? How is it important in the determination of a worker's wage rate?

Information technologies are a ________ for low-skilled labor and a ________ for high-skilled labor.

A firm that discriminates has ________ a nonprejudiced firm and ________.

-In the figure above, the richest 20 percent of households receive ________ of total income.

What do the Lorenz curves for wealth and income in the United States look like? Which is closer to the line of equality?

Unemployment compensation is an example of

-In the figure above, if income were distributed equally across all households, the richest 20 percent of households would receive ________ of total income.

-The above figure shows the Lorenz curve for wealth for the nation of Rusha. What percent of wealth is owned by the poorest quintile?

-The above figure shows the Lorenz curves for four different countries. Which country has the most unequal distribution of income?

A flat-rate income tax is also called ________.

Globalization means that firms recruit top talent from the global talent pool. Globalization means that the payoffs won by the contest winners ________.

Income is distributed ________ equally than wealth and the Lorenz curve for ________ lies closer to the line of equality.

-The above figure shows the supply and demand curves for high-skilled and low-skilled labor. The figure shows that high-skilled workers earn a wage rate greater than low-skilled workers because

In the United States

-The government in the country of Zappoo is trying to decide which tax plan to implement. The table above shows three alternative plans. If the government decides to implement a progressive income tax, it will implement tax plan ________.

Specialization of productive activity between men and women might explain why

The demand curve for high-skilled labor lies to the right of the demand curve for low-skilled labor because

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

Organizing Production

Output and Costs

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Public Choices and Public Goods

Externalities and the Environment

Markets for Factors of Production

Uncertainty and Information

Extension A: Review

Extension B: Review

Extension C: Review

Extension D: Review

Extension E: Review

Extension F: Review

Filters

Information technologies are a for low-skilled labor and a for high-skilled labor.

A firm that discriminates has a nonprejudiced firm and .

Income is distributed equally than wealth and the Lorenz curve for lies closer to the line of equality.