Question 1

According to the text, it is generally agreed that in the United States in the first two decades following World War II:

Accepted Answer

A)  income distribution in the United States became less equal. 
B)  income equality measures stayed the same. 
C)  income distribution became more equal. 
D)  there was no way to determine income distribution. 
A)  income distribution in the United States became less equal. 
B)  income equality measures stayed the same. 
C)  income distribution became more equal. 
D)  there was no way to determine income distribution.

Question 2

-(Exhibit: Income Distribution in the United States) Which of the following statements is true?

Accepted Answer

A)  In 1968, the lowest 60 percent of the families received 17.5 percent of the income. 
B)  In 1968, the lowest 60 percent of the families received 32.8 of the income. 
C)  In 1968, the lowest 80 percent of the families received 24.5 percent of the income. 
D)  In 1968, the lowest 80 percent of the families received 23.2 percent of the income. 
A)  In 1968, the lowest 60 percent of the families received 17.5 percent of the income. 
B)  In 1968, the lowest 60 percent of the families received 32.8 of the income. 
C)  In 1968, the lowest 80 percent of the families received 24.5 percent of the income. 
D)  In 1968, the lowest 80 percent of the families received 23.2 percent of the income.

Question 3

Suppose that racism and sexism don't exist on the customer side of perfectly competitive markets. Then, according to the text, competition among profit-maximizing firms:

Accepted Answer

A)  would not eliminate racism or sexism on the part of employers from the market. 
B)  would eliminate sexism but not racism on the part of employers from the market. 
C)  would eliminate both racism and sexism on the part of employers from the market. 
D)  has nothing to do with discrimination. 
A)  would not eliminate racism or sexism on the part of employers from the market. 
B)  would eliminate sexism but not racism on the part of employers from the market. 
C)  would eliminate both racism and sexism on the part of employers from the market. 
D)  has nothing to do with discrimination.

Question 4

All of the following are possible sources of discrimination against black workers EXCEPT:

Accepted Answer

A)  white workers prefer not to work with black workers. 
B)  employers prefer not to hire black workers. 
C)  black workers prefer to work with white workers. 
D)  consumers do not want to buy from black employees. 
A)  white workers prefer not to work with black workers. 
B)  employers prefer not to hire black workers. 
C)  black workers prefer to work with white workers. 
D)  consumers do not want to buy from black employees.

Question 5

Setting a specific income level and then defining a person (or household) as poor if his or her (or its) income falls below that income level is called a(n):

Accepted Answer

A)  means-tested test. 
B)  relative income test. 
C)  absolute income test. 
D)  nominal income test. 
A)  means-tested test. 
B)  relative income test. 
C)  absolute income test. 
D)  nominal income test.

Question 6

-(Exhibit: Discrimination Model) If blacks and whites have the same supply curve, but employers have discriminatory attitudes that cause them to assume a black worker is less productive, the wage of whites will be _______ , the quantity of whites hired will be ________ , the wage of blacks will be _______ , and the quantity of blacks hired will be ________ .

Accepted Answer

A)  W; L; W1; L1  
B)  W; L1; W; L1  
C)  W1; L1; W; L 
D)  W1; L; W; L1  
A)  W; L; W1; L1  
B)  W; L1; W; L1  
C)  W1; L1; W; L 
D)  W1; L; W; L1

Question 7

Poverty tends to be more severe for the elderly over the age of 65 than for females who are the head of a household without husbands present.

Accepted Answer

A) True 
 B)False

Question 8

The annual income level that marks the dividing line between poor households and those that are not poor is the:

Accepted Answer

A)  income line. 
B)  poverty line. 
C)  minimum-wage line. 
D)  relative income test. 
A)  income line. 
B)  poverty line. 
C)  minimum-wage line. 
D)  relative income test.

Question 9

Since the late 1970s in the United States, the demand for _______ labor _______ and the demand for _______ labor _______ .

Accepted Answer

A)  skilled; decreased; unskilled; increased 
B)  skilled; increased; unskilled; decreased 
C)  unskilled; stayed the same; skilled; increased 
D)  unskilled; increased; skilled; stayed the same 
A)  skilled; decreased; unskilled; increased 
B)  skilled; increased; unskilled; decreased 
C)  unskilled; stayed the same; skilled; increased 
D)  unskilled; increased; skilled; stayed the same

Question 10

If you establish that a family is on the low end of the income scale and is thus considered poor, you have come up with a (n):

Accepted Answer

A)  means-tested test. 
B)  relative income test 
C)  absolute income test 
D)  nominal income test. 
A)  means-tested test. 
B)  relative income test 
C)  absolute income test 
D)  nominal income test.

Question 11

-(Exhibit: Income Distribution in the United States) In 1968 and 2010, the lowest 40 percent of the families received _______ and _______ percent of the income, respectively.

Accepted Answer

A)  4.2; 3.3 
B)  11.1; 8.5 
C)  15.3; 11.8 
D)  None of the above are true. 
A)  4.2; 3.3 
B)  11.1; 8.5 
C)  15.3; 11.8 
D)  None of the above are true.

Question 12

The poverty rate for blacks in the United States in 2010 was about _______ percent.

Accepted Answer

A)  3 
B)  7 
C)  25 
D)  40 
A)  3 
B)  7 
C)  25 
D)  40

Question 13

The percentage of the U.S. population living in poverty in 2010 was:

Accepted Answer

A)  approximately 15 percent. 
B)  20-24 percent. 
C)  25-29 percent. 
D)  30-35 percent. 
E)  greater than 35 percent. 
A)  approximately 15 percent. 
B)  20-24 percent. 
C)  25-29 percent. 
D)  30-35 percent. 
E)  greater than 35 percent.

Question 14

One explanation for why the poor tend to receive more noncash assistance than cash assistance is that:

Accepted Answer

A)  the poor are better off with noncash assistance. 
B)  the poor prefer to receive noncash assistance. 
C)  taxpayers prefer to give cash assistance. 
D)  those who supply noncash services have more political power than the poor. 
A)  the poor are better off with noncash assistance. 
B)  the poor prefer to receive noncash assistance. 
C)  taxpayers prefer to give cash assistance. 
D)  those who supply noncash services have more political power than the poor.

Question 15

In the United States today, poor people have much ________ incomes than _______ .

Accepted Answer

A)  higher; poor people in poor countries 
B)  lower incomes; poor people in America five years ago 
C)  higher; most Americans had five years ago 
D)  lower; the average person in less developed countries. 
A)  higher; poor people in poor countries 
B)  lower incomes; poor people in America five years ago 
C)  higher; most Americans had five years ago 
D)  lower; the average person in less developed countries.

Question 16

-(Exhibit: Income Distribution in the United States) Which of the following statements is true?

Accepted Answer

A)  For 1968, a point on the Lorenz curve would show the lowest 40 percent of the families receiving 15.3 percent of the income. 
B)  For 2010, a point on the Lorenz curve would show the lowest 80 percent of the families receiving 49.4 percent of the income. 
C)  For 1968, a point on the Lorenz curve would show the lowest 80 percent of the families receiving 24.5 percent of the income. 
D)  For 2010, the lowest 40 percent of the families received 8.9 percent of the income. 
A)  For 1968, a point on the Lorenz curve would show the lowest 40 percent of the families receiving 15.3 percent of the income. 
B)  For 2010, a point on the Lorenz curve would show the lowest 80 percent of the families receiving 49.4 percent of the income. 
C)  For 1968, a point on the Lorenz curve would show the lowest 80 percent of the families receiving 24.5 percent of the income. 
D)  For 2010, the lowest 40 percent of the families received 8.9 percent of the income.

Question 17

Setting a specific income level and then defining a person as poor if his or her income falls below that level is called a relative income test.

Accepted Answer

A) True 
 B)False

Question 18

The characteristic most closely associated with poverty in the United States is age.

Accepted Answer

A) True 
 B)False

Question 19

In 2010 in the United States, approximately 5 percent of the families headed by females with no husband present fell below the poverty line.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following statements is true?

Accepted Answer

A)  Discrimination can reduce the perceived marginal revenue products of some groups of workers and thus lower their wage. 
B)  Between 1955 and 2010, there was no reduction in the gap between white male wages and black male wages. 
C)  The average wage of black females has risen to about 85 percent of the average wage of white males. 
D)  The gap between the earnings of black women and white males is smaller than the earnings gap between black males and white males. 
A)  Discrimination can reduce the perceived marginal revenue products of some groups of workers and thus lower their wage. 
B)  Between 1955 and 2010, there was no reduction in the gap between white male wages and black male wages. 
C)  The average wage of black females has risen to about 85 percent of the average wage of white males. 
D)  The gap between the earnings of black women and white males is smaller than the earnings gap between black males and white males.

According to the text, it is generally agreed that in the United States in the first two decades following World War II:

-(Exhibit: Income Distribution in the United States) Which of the following statements is true?

Suppose that racism and sexism don't exist on the customer side of perfectly competitive markets. Then, according to the text, competition among profit-maximizing firms:

All of the following are possible sources of discrimination against black workers EXCEPT:

Setting a specific income level and then defining a person (or household) as poor if his or her (or its) income falls below that income level is called a(n):

Poverty tends to be more severe for the elderly over the age of 65 than for females who are the head of a household without husbands present.

The annual income level that marks the dividing line between poor households and those that are not poor is the:

Since the late 1970s in the United States, the demand for ___ labor _ and the demand for _ labor ___ .

If you establish that a family is on the low end of the income scale and is thus considered poor, you have come up with a (n):

-(Exhibit: Income Distribution in the United States) In 1968 and 2010, the lowest 40 percent of the families received _ and _ percent of the income, respectively.

The poverty rate for blacks in the United States in 2010 was about _______ percent.

The percentage of the U.S. population living in poverty in 2010 was:

One explanation for why the poor tend to receive more noncash assistance than cash assistance is that:

In the United States today, poor people have much __ incomes than _ .

-(Exhibit: Income Distribution in the United States) Which of the following statements is true?

Setting a specific income level and then defining a person as poor if his or her income falls below that level is called a relative income test.

The characteristic most closely associated with poverty in the United States is age.

In 2010 in the United States, approximately 5 percent of the families headed by females with no husband present fell below the poverty line.

Which of the following statements is true?

Economics: the Study of Choice

Demand and Supply

Applications of Demand and Supply

Macroeconomics: the Big Picture

Measuring Total Output and Income

Aggregate Demand and Aggregate Supply

Economic Growth

The Nature and Creation of Money

Financial Markets and the Economy

Monetary Policy and the Fed

Government and Fiscal Policy

Consumption and the Aggregate Expenditures Model

Investment and Economic Activity

Net Exports and International Finance

Inflation and Unemployment

A Brief History of Macroeconomic Thought and Policy

Economic Development

Socialist Economies in Transition

Filters

Exam 18: Inequality, Poverty, and Discrimination

According to the text, it is generally agreed that in the United States in the first two decades following World War II:

-(Exhibit: Income Distribution in the United States) Which of the following statements is true?

Suppose that racism and sexism don't exist on the customer side of perfectly competitive markets. Then, according to the text, competition among profit-maximizing firms:

All of the following are possible sources of discrimination against black workers EXCEPT:

Setting a specific income level and then defining a person (or household) as poor if his or her (or its) income falls below that income level is called a(n):

Poverty tends to be more severe for the elderly over the age of 65 than for females who are the head of a household without husbands present.

The annual income level that marks the dividing line between poor households and those that are not poor is the:

Since the late 1970s in the United States, the demand for _______ labor _______ and the demand for _______ labor _______ .

If you establish that a family is on the low end of the income scale and is thus considered poor, you have come up with a (n):

-(Exhibit: Income Distribution in the United States) In 1968 and 2010, the lowest 40 percent of the families received _______ and _______ percent of the income, respectively.

The poverty rate for blacks in the United States in 2010 was about _______ percent.

The percentage of the U.S. population living in poverty in 2010 was:

One explanation for why the poor tend to receive more noncash assistance than cash assistance is that:

In the United States today, poor people have much ________ incomes than _______ .

-(Exhibit: Income Distribution in the United States) Which of the following statements is true?

Setting a specific income level and then defining a person as poor if his or her income falls below that level is called a relative income test.

The characteristic most closely associated with poverty in the United States is age.

In 2010 in the United States, approximately 5 percent of the families headed by females with no husband present fell below the poverty line.

Which of the following statements is true?

Economics: the Study of Choice

Demand and Supply

Applications of Demand and Supply

Macroeconomics: the Big Picture

Measuring Total Output and Income

Aggregate Demand and Aggregate Supply

Economic Growth

The Nature and Creation of Money

Financial Markets and the Economy

Monetary Policy and the Fed

Government and Fiscal Policy

Consumption and the Aggregate Expenditures Model

Investment and Economic Activity

Net Exports and International Finance

Inflation and Unemployment

A Brief History of Macroeconomic Thought and Policy

Economic Development

Socialist Economies in Transition

Filters

Since the late 1970s in the United States, the demand for ___ labor _ and the demand for _ labor ___ .

-(Exhibit: Income Distribution in the United States) In 1968 and 2010, the lowest 40 percent of the families received _ and _ percent of the income, respectively.

In the United States today, poor people have much __ incomes than _ .