Question 1

From 1989 to 2013, the share of wealth for the bottom 90% of wealth holders in the United States

Accepted Answer

A)  decreased by about 8 percentage points. 
B)  remained roughly the same. 
C)  increased by almost 10 percentage points. 
D)  increased by more than 45 percentage points. 
A)  decreased by about 8 percentage points. 
B)  remained roughly the same. 
C)  increased by almost 10 percentage points. 
D)  increased by more than 45 percentage points.

Question 2

You and your brother are splitting a piece of cake. You cut it into two pieces and your brother selects his piece first. Thus, you cut it into two equally sized pieces. This is an example of

Accepted Answer

A)  utilitarian justice. 
B)  Rawlsian justice. 
C)  communism. 
D)  a public good. 
A)  utilitarian justice. 
B)  Rawlsian justice. 
C)  communism. 
D)  a public good.

Question 3

Human capital can be produced through on-the-job training.

Accepted Answer

A) True 
 B)False

Question 4

A Gini coefficient of ________ means that one family has all the income and everyone else has nothing.

Accepted Answer

A)  0 
B)  1 
C)  100 
D)  infinity 
A)  0 
B)  1 
C)  100 
D)  infinity

Question 5

Recall the Economics in Practice on page 372: The percentage and distribution of workers in an occupation , based on demographic characteristics such as gender, is known as

Accepted Answer

A)  compensating differentials. 
B)  utilitarian job bias. 
C)  the glass ceiling effect. 
D)  occupational segregation. 
A)  compensating differentials. 
B)  utilitarian job bias. 
C)  the glass ceiling effect. 
D)  occupational segregation.

Question 6

Transfer payments tend to ________ when overall economic growth is ________.

Accepted Answer

A)  rise; high 
B)  fall; low 
C)  rise; low 
D)  rise; either high or low 
A)  rise; high 
B)  fall; low 
C)  rise; low 
D)  rise; either high or low

Question 7

Households acquire property through

Accepted Answer

A)  inheritance only. 
B)  savings and inheritance. 
C)  savings only. 
D)  supplying labor in the labor market. 
A)  inheritance only. 
B)  savings and inheritance. 
C)  savings only. 
D)  supplying labor in the labor market.

Question 8

Both Claudia and Javier are certified educators. Claudia makes $55,000 a year working as a teacher in a public high school in Chicago. Javier makes $40,000 working as a grade school teacher in a private school in Chicago. Which of the following is true?

Accepted Answer

A)  Javier is clearly worse off than Claudia, because he earns $15,000 a year less. 
B)  Javier must be better off than Claudia if he is willing to take a job at $15,000 a year less than Claudia. 
C)  From this information it cannot be determined who is better off because income is an imperfect measure of well-being. 
D)  Even though income is an imperfect measure of well-being, Claudia and Javier must be equally well off because either is free to switch jobs. 
A)  Javier is clearly worse off than Claudia, because he earns $15,000 a year less. 
B)  Javier must be better off than Claudia if he is willing to take a job at $15,000 a year less than Claudia. 
C)  From this information it cannot be determined who is better off because income is an imperfect measure of well-being. 
D)  Even though income is an imperfect measure of well-being, Claudia and Javier must be equally well off because either is free to switch jobs.

Question 9

Refer to the information provided in Figure 18.1 below to answer the question(s) that follow.   Figure 18.1
-Refer to Figure 18.1. Suppose that the Lorenz curve ran along the ________ to 100%, then became ________ to 100%. This would mean that only one family earned all the income.

Accepted Answer

A)  X-axis; vertical 
B)  X-axis; horizontal 
C)  Y-axis; vertical 
D)  Y-axis; horizontal 
A)  X-axis; vertical 
B)  X-axis; horizontal 
C)  Y-axis; vertical 
D)  Y-axis; horizontal

Question 10

What percentage of United States personal income in 2017 came from ownership of property?

Accepted Answer

A)  9% 
B)  28% 
C)  51% 
D)  64% 
A)  9% 
B)  28% 
C)  51% 
D)  64%

Question 11

The Social Security System includes three separate programs. They are

Accepted Answer

A)  Old Age and Survivors Insurance, Disability Insurance, and Health Insurance. 
B)  Old Age and Survivors Insurance, Medicare, and Medicaid. 
C)  Disability Insurance, Medicare, and Temporary Assistance to Needy Families (TANF). 
D)  Old Age and Survivors Insurance, Medicare, and Unemployment Compensation. 
A)  Old Age and Survivors Insurance, Disability Insurance, and Health Insurance. 
B)  Old Age and Survivors Insurance, Medicare, and Medicaid. 
C)  Disability Insurance, Medicare, and Temporary Assistance to Needy Families (TANF). 
D)  Old Age and Survivors Insurance, Medicare, and Unemployment Compensation.

Question 12

All Honolulu law enforcement personnel must go through the same training program, but law enforcement personnel assigned to guard the capital building earn 15% less than law enforcement personnel assigned to the homicide division. This 15% difference in pay is an example of a ________ differential.

Accepted Answer

A)  human capital 
B)  compensating 
C)  transfer payment 
D)  utility 
A)  human capital 
B)  compensating 
C)  transfer payment 
D)  utility

Question 13

Counting the total number of individuals on any assistance program and dividing by the population determine the poverty line.

Accepted Answer

A) True 
 B)False

Question 14

In the ________, the tax receipts from today's workers are used to pay benefits to retired and disabled workers and their dependents today.

Accepted Answer

A)  Medicare and Medicaid programs 
B)  public assistance (welfare) program 
C)  Social Security system 
D)  unemployment insurance program 
A)  Medicare and Medicaid programs 
B)  public assistance (welfare) program 
C)  Social Security system 
D)  unemployment insurance program

Question 15

In 2017 about 9% of personal income in the United States came from

Accepted Answer

A)  wages and salaries. 
B)  property income. 
C)  transfer payments. 
D)  profits. 
A)  wages and salaries. 
B)  property income. 
C)  transfer payments. 
D)  profits.

Question 16

The most common argument for income redistribution is that

Accepted Answer

A)  it works-it reduces the poverty rate. 
B)  it improves efficiency in the economy. 
C)  it provides more incentive for people to try to better themselves. 
D)  a society as wealthy as the United States has a moral obligation to provide its members with the basic necessities of life. 
A)  it works-it reduces the poverty rate. 
B)  it improves efficiency in the economy. 
C)  it provides more incentive for people to try to better themselves. 
D)  a society as wealthy as the United States has a moral obligation to provide its members with the basic necessities of life.

Question 17

In 2017 about 12% of personal income in the United States came from

Accepted Answer

A)  wages and salaries. 
B)  property income. 
C)  transfer payments. 
D)  wage supplements. 
A)  wages and salaries. 
B)  property income. 
C)  transfer payments. 
D)  wage supplements.

From 1989 to 2013, the share of wealth for the bottom 90% of wealth holders in the United States

You and your brother are splitting a piece of cake. You cut it into two pieces and your brother selects his piece first. Thus, you cut it into two equally sized pieces. This is an example of

Human capital can be produced through on-the-job training.

A Gini coefficient of ________ means that one family has all the income and everyone else has nothing.

Recall the Economics in Practice on page 372: The percentage and distribution of workers in an occupation , based on demographic characteristics such as gender, is known as

Transfer payments tend to when overall economic growth is .

Households acquire property through

Both Claudia and Javier are certified educators. Claudia makes $55,000 a year working as a teacher in a public high school in Chicago. Javier makes $40,000 working as a grade school teacher in a private school in Chicago. Which of the following is true?

Refer to the information provided in Figure 18.1 below to answer the question(s) that follow. Figure 18.1 -Refer to Figure 18.1. Suppose that the Lorenz curve ran along the to 100%, then became to 100%. This would mean that only one family earned all the income.

What percentage of United States personal income in 2017 came from ownership of property?

The Social Security System includes three separate programs. They are

All Honolulu law enforcement personnel must go through the same training program, but law enforcement personnel assigned to guard the capital building earn 15% less than law enforcement personnel assigned to the homicide division. This 15% difference in pay is an example of a ________ differential.

Counting the total number of individuals on any assistance program and dividing by the population determine the poverty line.

In the ________, the tax receipts from today's workers are used to pay benefits to retired and disabled workers and their dependents today.

In 2017 about 9% of personal income in the United States came from

The most common argument for income redistribution is that

In 2017 about 12% of personal income in the United States came from

The Scope and Method of Economics

The Economic Problem: Scarcity and Choice

Demand, Supply, and Market Equilibrium

Demand and Supply Applications

Elasticity

Household Behavior and Consumer Choice

The Production Process: the Behavior of Profit-Maximizing Firms

Short-Run Costs and Output Decisions

Long-Run Costs and Output Decisions

Input Demand: the Labor and Land Markets

Input Demand: the Capital Market and the Investment Decision

General Equilibrium and the Efficiency of Perfect Competition

Monopoly and Antitrust Policy

Oligopoly

Monopolistic Competition

Externalities, Public Goods, and Common Resources

Uncertainty and Asymmetric Information

Public Finance: the Economics of Taxation

International Trade, Comparative Advantage, and Protectionism

Economic Growth in Developing Economies

Critical Thinking About Research

Filters

Exam 18: Income Distribution and Poverty

From 1989 to 2013, the share of wealth for the bottom 90% of wealth holders in the United States

You and your brother are splitting a piece of cake. You cut it into two pieces and your brother selects his piece first. Thus, you cut it into two equally sized pieces. This is an example of

Human capital can be produced through on-the-job training.

A Gini coefficient of ________ means that one family has all the income and everyone else has nothing.

Recall the Economics in Practice on page 372: The percentage and distribution of workers in an occupation , based on demographic characteristics such as gender, is known as

Transfer payments tend to ________ when overall economic growth is ________.

Households acquire property through

Both Claudia and Javier are certified educators. Claudia makes $55,000 a year working as a teacher in a public high school in Chicago. Javier makes $40,000 working as a grade school teacher in a private school in Chicago. Which of the following is true?

Refer to the information provided in Figure 18.1 below to answer the question(s) that follow. Figure 18.1 -Refer to Figure 18.1. Suppose that the Lorenz curve ran along the ________ to 100%, then became ________ to 100%. This would mean that only one family earned all the income.

What percentage of United States personal income in 2017 came from ownership of property?

The Social Security System includes three separate programs. They are

All Honolulu law enforcement personnel must go through the same training program, but law enforcement personnel assigned to guard the capital building earn 15% less than law enforcement personnel assigned to the homicide division. This 15% difference in pay is an example of a ________ differential.

Counting the total number of individuals on any assistance program and dividing by the population determine the poverty line.

In the ________, the tax receipts from today's workers are used to pay benefits to retired and disabled workers and their dependents today.

In 2017 about 9% of personal income in the United States came from

The most common argument for income redistribution is that

In 2017 about 12% of personal income in the United States came from

The Scope and Method of Economics

The Economic Problem: Scarcity and Choice

Demand, Supply, and Market Equilibrium

Demand and Supply Applications

Elasticity

Household Behavior and Consumer Choice

The Production Process: the Behavior of Profit-Maximizing Firms

Short-Run Costs and Output Decisions

Long-Run Costs and Output Decisions

Input Demand: the Labor and Land Markets

Input Demand: the Capital Market and the Investment Decision

General Equilibrium and the Efficiency of Perfect Competition

Monopoly and Antitrust Policy

Oligopoly

Monopolistic Competition

Externalities, Public Goods, and Common Resources

Uncertainty and Asymmetric Information

Public Finance: the Economics of Taxation

International Trade, Comparative Advantage, and Protectionism

Economic Growth in Developing Economies

Critical Thinking About Research

Filters

Transfer payments tend to when overall economic growth is .

Refer to the information provided in Figure 18.1 below to answer the question(s) that follow. Figure 18.1 -Refer to Figure 18.1. Suppose that the Lorenz curve ran along the to 100%, then became to 100%. This would mean that only one family earned all the income.