Question 1

What is meant by the term "assortative mating" and how does it affect the distribution of wealth?

Accepted Answer

Assortative mating is the tendency for p

Question 2

-In the figure above, the Lorenz curve that shows the richest 20 of households percent receiving 60 percent of all income is

Accepted Answer

A)  curve A. 
B)  curve B. 
C)  curve C. 
D)  curve D. 
A)  curve A. 
B)  curve B. 
C)  curve C. 
D)  curve D.

Question 3

Computers and laser scanners are ________ for low-skilled labor and ________ for high-skilled labor. The introduction of these technologies ________ the wage rate of high-skilled workers and ________ the wage rate of low-skilled workers.

Accepted Answer

A)  complements; substitutes; raises; lowers 
B)  substitutes; complements; lowers; raises 
C)  substitutes; complements; raises; lowers 
D)  complements; substitutes; lowers; raises 
A)  complements; substitutes; raises; lowers 
B)  substitutes; complements; lowers; raises 
C)  substitutes; complements; raises; lowers 
D)  complements; substitutes; lowers; raises

Question 4

-The above table shows the distribution of wealth and income in Miseria. The Lorenz curve for wealth would

Accepted Answer

A)  be parallel to the line of equality. 
B)  lie to the left of the Lorenz curve for income. 
C)  become flatter when moving from left to right. 
D)  intersect the horizontal axis at twenty percent. 
A)  be parallel to the line of equality. 
B)  lie to the left of the Lorenz curve for income. 
C)  become flatter when moving from left to right. 
D)  intersect the horizontal axis at twenty percent.

Question 5

-Using the table provided above, what can be concluded about the Gini ratio and what does this mean for income equality?

Accepted Answer

A)  The Gini ratio is increasing which means there is greater income inequality. 
B)  The Gini ratio is increasing which means there is greater income equality. 
C)  The Gini ratio is decreasing which means there is greater income equality. 
D)  The Gini ratio is decreasing which means there is greater income inequality. 
A)  The Gini ratio is increasing which means there is greater income inequality. 
B)  The Gini ratio is increasing which means there is greater income equality. 
C)  The Gini ratio is decreasing which means there is greater income equality. 
D)  The Gini ratio is decreasing which means there is greater income inequality.

Question 6

The biggest single factor affecting family income distribution is the

Accepted Answer

A)  householder's age. 
B)  householder's marital status. 
C)  household size. 
D)  householder's education. 
A)  householder's age. 
B)  householder's marital status. 
C)  household size. 
D)  householder's education.

Question 7

The lifetime income distribution of income is a ________ accurate indicator of the degree of economic inequality than the distribution of ________.

Accepted Answer

A)  less; of annual income 
B)  more; of annual income 
C)  less; of wealth 
D)  less; annual Lorenz curves 
A)  less; of annual income 
B)  more; of annual income 
C)  less; of wealth 
D)  less; annual Lorenz curves

Question 8

-The above figure shows the supply and demand curves for high-skilled and low-skilled labor. Low-skilled workers earn a wage rate of

Accepted Answer

A)  $15 per hour. 
B)  $12 per hour. 
C)  $9 per hour. 
D)  $6 per hour. 
A)  $15 per hour. 
B)  $12 per hour. 
C)  $9 per hour. 
D)  $6 per hour.

Question 9

In the U.S. in 2012 the percentage of the Americans living below the poverty line was about

Accepted Answer

A)  15 percent. 
B)  20 percent. 
C)  5 percent. 
D)  27 percent. 
A)  15 percent. 
B)  20 percent. 
C)  5 percent. 
D)  27 percent.

Question 10

-The above figure shows the Lorenz curve for wealth for the nation of Rusha. The poorest forty percent of the population own what percent of wealth?

Accepted Answer

A)  0 percent 
B)  10 percent 
C)  20 percent 
D)  40 percent 
A)  0 percent 
B)  10 percent 
C)  20 percent 
D)  40 percent

Question 11

Which of the following groups is the LEAST likely to be poor?

Accepted Answer

A)  college graduates 
B)  minorities 
C)  single females 
D)  people without high school degrees 
A)  college graduates 
B)  minorities 
C)  single females 
D)  people without high school degrees

Question 12

-Using the table provided above, which of the following statements is true?

Accepted Answer

A)  Income inequality is decreasing. 
B)  Incomes are increasing. 
C)  Incomes are decreasing. 
D)  Income inequality is increasing. 
A)  Income inequality is decreasing. 
B)  Incomes are increasing. 
C)  Incomes are decreasing. 
D)  Income inequality is increasing.

Question 13

Which of the following taxes causes the greatest shift of the Lorenz curve toward the line of equality?

Accepted Answer

A)  proportional income tax 
B)  regressive income tax 
C)  flat-rate income tax 
D)  progressive income tax 
A)  proportional income tax 
B)  regressive income tax 
C)  flat-rate income tax 
D)  progressive income tax

Question 14

In the United States, the wealthiest 1 percent of households own about ________ of total wealth.

Accepted Answer

A)  18 percent 
B)  12 percent 
C)  38 percent 
D)  5 percent 
A)  18 percent 
B)  12 percent 
C)  38 percent 
D)  5 percent

Question 15

If a Lorenz curve for a country's income bows more rightward over time, then the country's

Accepted Answer

A)  income is increasing. 
B)  income is decreasing. 
C)  income is becoming more unequally distributed. 
D)  income is becoming more equally distributed. 
A)  income is increasing. 
B)  income is decreasing. 
C)  income is becoming more unequally distributed. 
D)  income is becoming more equally distributed.

Question 16

-In the figure above, 10 percent of income in country A is distributed to the

Accepted Answer

A)  richest 10 percent of the households. 
B)  poorest 10 percent of the households. 
C)  richest 30 percent of the households. 
D)  poorest 30 percent of the households. 
A)  richest 10 percent of the households. 
B)  poorest 10 percent of the households. 
C)  richest 30 percent of the households. 
D)  poorest 30 percent of the households.

Question 17

Differences in human capital and discrimination can help explain economic inequality.

Accepted Answer

A) True 
 B)False

Question 18

Since 1970, the U.S. Gini ratio has

Accepted Answer

A)  increased. 
B)  decreased. 
C)  increased and then decreased. 
D)  decreased and then increased. 
A)  increased. 
B)  decreased. 
C)  increased and then decreased. 
D)  decreased and then increased.

Question 19

Regressive income taxes are

Accepted Answer

A)  an important form of income redistribution. 
B)  present when the average tax rate decreases as income decreases. 
C)  present when the average tax rate decreases as income increases. 
D)  Both answers A and B are correct. 
A)  an important form of income redistribution. 
B)  present when the average tax rate decreases as income decreases. 
C)  present when the average tax rate decreases as income increases. 
D)  Both answers A and B are correct.

Question 20

Which of the following is a reason why the wage rate of high-skilled workers exceeds the wage rate of low-skilled workers?

Accepted Answer

A)  The market for high-skilled workers is more competitive than the market for low-skilled labor. 
B)  The demand for high-skilled workers exceeds the demand for low-skilled workers. 
C)  The number of high-skilled workers exceeds the number of low-skilled workers. 
D)  Low-skilled workers often are in the process of acquiring more human capital. 
A)  The market for high-skilled workers is more competitive than the market for low-skilled labor. 
B)  The demand for high-skilled workers exceeds the demand for low-skilled workers. 
C)  The number of high-skilled workers exceeds the number of low-skilled workers. 
D)  Low-skilled workers often are in the process of acquiring more human capital.

Exam 19: Economic Inequality

What is meant by the term "assortative mating" and how does it affect the distribution of wealth?

-In the figure above, the Lorenz curve that shows the richest 20 of households percent receiving 60 percent of all income is

Computers and laser scanners are ________ for low-skilled labor and ________ for high-skilled labor. The introduction of these technologies ________ the wage rate of high-skilled workers and ________ the wage rate of low-skilled workers.

-The above table shows the distribution of wealth and income in Miseria. The Lorenz curve for wealth would

-Using the table provided above, what can be concluded about the Gini ratio and what does this mean for income equality?

The biggest single factor affecting family income distribution is the

The lifetime income distribution of income is a ________ accurate indicator of the degree of economic inequality than the distribution of ________.

-The above figure shows the supply and demand curves for high-skilled and low-skilled labor. Low-skilled workers earn a wage rate of

In the U.S. in 2012 the percentage of the Americans living below the poverty line was about

-The above figure shows the Lorenz curve for wealth for the nation of Rusha. The poorest forty percent of the population own what percent of wealth?

Which of the following groups is the LEAST likely to be poor?

-Using the table provided above, which of the following statements is true?

Which of the following taxes causes the greatest shift of the Lorenz curve toward the line of equality?

In the United States, the wealthiest 1 percent of households own about ________ of total wealth.

If a Lorenz curve for a country's income bows more rightward over time, then the country's

-In the figure above, 10 percent of income in country A is distributed to the

Differences in human capital and discrimination can help explain economic inequality.

Since 1970, the U.S. Gini ratio has

Regressive income taxes are

Which of the following is a reason why the wage rate of high-skilled workers exceeds the wage rate of low-skilled workers?

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

Computers and laser scanners are for low-skilled labor and for high-skilled labor. The introduction of these technologies the wage rate of high-skilled workers and the wage rate of low-skilled workers.

The lifetime income distribution of income is a accurate indicator of the degree of economic inequality than the distribution of .