Question 1

Differences in income result from differences in

Accepted Answer

A)  innate abilities and attributes. 
B)  education and other training. 
C)  attitudes toward risk. 
D)  a and b 
E)  a, b, and c 
A)  innate abilities and attributes. 
B)  education and other training. 
C)  attitudes toward risk. 
D)  a and b 
E)  a, b, and c

Question 2

Which of the following statements is false?

Accepted Answer

A)  There are more poor white persons than there are poor African-American persons. 
B)  People are more likely to be poor when they are young than at any other time. 
C)  Families headed by females are more likely to be poor than families headed by males. 
D)  The uneducated and poorly educated are more likely to be poor than the educated. 
E)  none of the above 
A)  There are more poor white persons than there are poor African-American persons. 
B)  People are more likely to be poor when they are young than at any other time. 
C)  Families headed by females are more likely to be poor than families headed by males. 
D)  The uneducated and poorly educated are more likely to be poor than the educated. 
E)  none of the above

Question 3

When income distribution data for the United States is adjusted for taxes and in-kind transfer payments the distribution is more equal than before such an adjustment is made.

Accepted Answer

A) True 
 B)False

Question 4

A person is more likely to be poor if he or she is

Accepted Answer

A)  African-American or Hispanic rather than white. 
B)  a member of a male-headed family rather than a female-headed family. 
C)  old rather than young. 
D)  all of the above 
A)  African-American or Hispanic rather than white. 
B)  a member of a male-headed family rather than a female-headed family. 
C)  old rather than young. 
D)  all of the above

Question 5

Compared to those people who prefer to play it safe,individuals who are more comfortable taking risks are more likely to reach the top of the income distribution,or to hit the bottom,ceteris paribus.

Accepted Answer

A) True 
 B)False

Question 6

Describe the relationship between income and education in the United States. Cite evidence that supports and explains this relationship.

Accepted Answer

There is a significant direct relationsh

Question 7

The larger the Gini coefficient,the

Accepted Answer

A)  greater the degree of income inequality. 
B)  greater the degree of income equality. 
C)  smaller the population. 
D)  larger the population. 
E)  b and d 
A)  greater the degree of income inequality. 
B)  greater the degree of income equality. 
C)  smaller the population. 
D)  larger the population. 
E)  b and d

Question 8

The economist who said,"I am distressed by the sight of poverty.I am benefited by its alleviation; but I am benefited equally whether I or someone else pays for its alleviation; the benefits of other people's charity therefore partly accrues to me" was

Accepted Answer

A)  John Kenneth Galbraith. 
B)  John Rawls. 
C)  Milton Friedman. 
D)  Adam Smith. 
E)  David Ricardo. 
A)  John Kenneth Galbraith. 
B)  John Rawls. 
C)  Milton Friedman. 
D)  Adam Smith. 
E)  David Ricardo.

Question 9

If the Gini coefficient is zero (0),this means that

Accepted Answer

A)  there is complete income inequality. 
B)  there is some income inequality. 
C)  there is perfect income equality. 
D)  the area between the line of perfect income equality and the actual Lorenz curve is very large. 
E)  a and d 
A)  there is complete income inequality. 
B)  there is some income inequality. 
C)  there is perfect income equality. 
D)  the area between the line of perfect income equality and the actual Lorenz curve is very large. 
E)  a and d

Question 10

Suppose the data show that each year between 1962 and 2012,10 percent of all income earners (in the United States)earned little enough to be considered poor.It follows that

Accepted Answer

A)  the person who was part of the 10 percent poor in 1962 was also part of the 10 percent poor in 2012. 
B)  the person who was part of the 10 percent poor in 1962 may not be part of the 10 percent poor in 2012. 
C)  there is no upward income mobility in the United States. 
D)  the income distribution in the United States (during this period of time) was unequal. 
E)  b and d 
A)  the person who was part of the 10 percent poor in 1962 was also part of the 10 percent poor in 2012. 
B)  the person who was part of the 10 percent poor in 1962 may not be part of the 10 percent poor in 2012. 
C)  there is no upward income mobility in the United States. 
D)  the income distribution in the United States (during this period of time) was unequal. 
E)  b and d

Question 11

By itself,knowing a country's Gini coefficient does not tell one anything about the income distribution of a particular quintile within that country.

Accepted Answer

A) True 
 B)False

Question 12

Some economists contend that in-kind transfers should be included in the calculation of an individual's income because

Accepted Answer

A)  in-kind items do not cost anything. 
B)  simple money income is not a complete measure of one's command over goods and services. 
C)  in-kind items make a person "better off" than the person's actual money income would lead us to believe. 
D)  b and c 
A)  in-kind items do not cost anything. 
B)  simple money income is not a complete measure of one's command over goods and services. 
C)  in-kind items make a person "better off" than the person's actual money income would lead us to believe. 
D)  b and c

Question 13

Maria and Lourdes work for the same company.If Maria earns more than Lourdes,is this evidence of wage discrimination? Explain your answer.

Accepted Answer

Wage discrimination exists when individu

Exam 29: The Distribution of Income and Poverty

Differences in income result from differences in

Which of the following statements is false?

When income distribution data for the United States is adjusted for taxes and in-kind transfer payments the distribution is more equal than before such an adjustment is made.

A person is more likely to be poor if he or she is

Compared to those people who prefer to play it safe,individuals who are more comfortable taking risks are more likely to reach the top of the income distribution,or to hit the bottom,ceteris paribus.

Describe the relationship between income and education in the United States. Cite evidence that supports and explains this relationship.

The larger the Gini coefficient,the

The economist who said,"I am distressed by the sight of poverty.I am benefited by its alleviation; but I am benefited equally whether I or someone else pays for its alleviation; the benefits of other people's charity therefore partly accrues to me" was

If the Gini coefficient is zero (0),this means that

Suppose the data show that each year between 1962 and 2012,10 percent of all income earners (in the United States)earned little enough to be considered poor.It follows that

By itself,knowing a country's Gini coefficient does not tell one anything about the income distribution of a particular quintile within that country.

Some economists contend that in-kind transfers should be included in the calculation of an individual's income because

Maria and Lourdes work for the same company.If Maria earns more than Lourdes,is this evidence of wage discrimination? Explain your answer.

What Economics Is About

Production Possibilities Frontier Framework

Supply and Demand: Theory

Prices: Free, Controlled, and Relative

Supply, Demand, and Price: Applications

Macroeconomic Measurements: Prices and Unemployment

Macroeconomic Measurements: GDP and Real GDP

Aggregate Demand and Aggregate Supply

Classical Macroeconomics and the Self Regulating Economy

Keynesian Macroeconomics and Economic Instability: A Critique of the Self-Regulating Economy

Fiscal Policy and the Federal Budget

Money, Banking,and the Financial System

The Federal Reserve System

Money and the Economy

Monetary Policy

Expectations Theory and the Economy

Economic Growth: Resources, Technology, Ideas, and Institutions

The Financial Crisis of 2007-2009

Debates in Macroeconomics Over the Role and Effects of Government

Elasticity

Consumer Choice: Maximizing Utility and Behavioral Economics

Production and Costs

Perfect Competition

Monopoly

Monopolistic Competition, Oligopoly, and Game Theory

Government and Product Markets: Antitrust and Regulation

Factor Markets: With Emphasis on the Labor Market

Wages,Unions,and Labor

Interest, Rent, and Profit

Market Failure: Externalities, Public Goods, and Asymmetric Information

Public Choice and Special-Interest-Group Politics

Building Theories to Explain Everyday Life: From Observations to Questions to Theories to Predictions

International Trade

International Finance

Globalization and International Impacts on the Economy

The Economic Case For and Against Government: Five Topics Considered

Stocks, Bonds, Futures, and Options

Agriculture: Problems, Policies, and Unintended Effects

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