Question 1

Professional female basketball players make far less income than do professional male basketball players. Why?

Accepted Answer

A)  gender discrimination 
B)  The supply of female players is far greater than the supply of male players. 
C)  The demand for female players is far less than the demand for male players. 
D)  compensating differentials 
A)  gender discrimination 
B)  The supply of female players is far greater than the supply of male players. 
C)  The demand for female players is far less than the demand for male players. 
D)  compensating differentials

Question 2

Earning a doctorate in environmental economics is an example of

Accepted Answer

A)  a Pareto good. 
B)  a compensating differential. 
C)  economic income. 
D)  an investment in human capital. 
A)  a Pareto good. 
B)  a compensating differential. 
C)  economic income. 
D)  an investment in human capital.

Question 3

________ provides health benefits to people with low incomes, and ________ provides health benefits to most people over the age of 65.

Accepted Answer

A)  Medicare; Medicaid 
B)  Medicaid; Medicare 
C)  Medicare; the Temporary Assistance to Needy Families (TANF) program 
D)  Medicaid; the Temporary Assistance to Needy Families (TANF) program 
A)  Medicare; Medicaid 
B)  Medicaid; Medicare 
C)  Medicare; the Temporary Assistance to Needy Families (TANF) program 
D)  Medicaid; the Temporary Assistance to Needy Families (TANF) program

Question 4

On-the-job-training is an example of

Accepted Answer

A)  an investment in human capital. 
B)  a compensating wage differential. 
C)  economic income. 
D)  income redistribution. 
A)  an investment in human capital. 
B)  a compensating wage differential. 
C)  economic income. 
D)  income redistribution.

Question 5

If we consider one Gini coefficient for the entire population of the world, this coefficient has probably ________ in the last two decades.

Accepted Answer

A)  increased 
B)  decreased 
C)  remained unchanged 
D)  fallen to zero 
A)  increased 
B)  decreased 
C)  remained unchanged 
D)  fallen to zero

Question 6

About 75 percent of American women over the age of 16 are in the labor force.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is an economic or political question regarding income redistribution?

Accepted Answer

A)  How does a society go about making income distribution more equal? 
B)  Will there be costs associated with income redistribution policies? 
C)  Will redistributing income from the wealthy to the poor destroy incentives? 
D)  All of the above are economic or political questions regarding income redistribution. 
A)  How does a society go about making income distribution more equal? 
B)  Will there be costs associated with income redistribution policies? 
C)  Will redistributing income from the wealthy to the poor destroy incentives? 
D)  All of the above are economic or political questions regarding income redistribution.

Question 8

The ________ in the United States is set at three times the cost of the Department of Agriculture's minimum food budget.

Accepted Answer

A)  minimum wage 
B)  official poverty line 
C)  cost of living 
D)  Medicare threshold 
A)  minimum wage 
B)  official poverty line 
C)  cost of living 
D)  Medicare threshold

Question 9

Individuals with more experience tend to earn more than individuals with less experience. This is because

Accepted Answer

A)  experience is a compensating differential. 
B)  experience on the job increases an individual's human capital. 
C)  it is only fair that a more-experienced worker be paid more than a less-experienced worker. 
D)  the government requires that more-experienced workers be paid more than less-experienced workers. 
A)  experience is a compensating differential. 
B)  experience on the job increases an individual's human capital. 
C)  it is only fair that a more-experienced worker be paid more than a less-experienced worker. 
D)  the government requires that more-experienced workers be paid more than less-experienced workers.

Question 10

The $1,000 you earned last year on your money market fund is an example of

Accepted Answer

A)  property income. 
B)  transfer income. 
C)  inheritance income. 
D)  human capital income. 
A)  property income. 
B)  transfer income. 
C)  inheritance income. 
D)  human capital income.

Question 11

Property income takes the form of

Accepted Answer

A)  transfer payments. 
B)  wages and salaries. 
C)  profits, interest, dividends, and rents. 
D)  compensating differentials. 
A)  transfer payments. 
B)  wages and salaries. 
C)  profits, interest, dividends, and rents. 
D)  compensating differentials.

Question 12

Medicaid is a health insurance program for the aged and certain disabled persons.

Accepted Answer

A) True 
 B)False

Question 13

Education is an investment in human capital.

Accepted Answer

A) True 
 B)False

Question 14

American workers in Iraq earn hazard pay. This is an example of a compensating differential.

Accepted Answer

A) True 
 B)False

Question 15

If the official poverty line for a family of four is $15,000, then the Department of Agriculture's minimum food bundle costs a family of four ________ per year.

Accepted Answer

A)  $1,500 
B)  $3,000 
C)  $5,000 
D)  $15,000 
A)  $1,500 
B)  $3,000 
C)  $5,000 
D)  $15,000

Question 16

Human capital is a combination of inborn and acquired skills, talent, and knowledge.

Accepted Answer

A) True 
 B)False

Question 17

In 2015, President Obama proposed increasing the minimum wage from $7.25/hr to $10.10/hr. According to theory, what would likely be the result of such an increase?

Accepted Answer

A)  Some workers would leave the labor market. 
B)  Firms would hire more workers. 
C)  All workers prior to the wage increase would now earn at least $10.10 per hour. 
D)  Unemployment would increase as firms lay off workers. 
A)  Some workers would leave the labor market. 
B)  Firms would hire more workers. 
C)  All workers prior to the wage increase would now earn at least $10.10 per hour. 
D)  Unemployment would increase as firms lay off workers.

Question 18

After-tax income is much less equally distributed than before-tax income.

Accepted Answer

A) True 
 B)False

Question 19

Wage and property income before transfers and taxes is known as market income.

Accepted Answer

A) True 
 B)False

Question 20

A progressive income tax means that those with a higher income pay

Accepted Answer

A)  a lower percentage of their income in taxes than low-income people. 
B)  a higher percentage of their income in taxes than low-income people. 
C)  the same percentage of their income in taxes as low-income people. 
D)  all the taxes in the economy. 
A)  a lower percentage of their income in taxes than low-income people. 
B)  a higher percentage of their income in taxes than low-income people. 
C)  the same percentage of their income in taxes as low-income people. 
D)  all the taxes in the economy.

Exam 18: Income Distribution and Poverty

Professional female basketball players make far less income than do professional male basketball players. Why?

Earning a doctorate in environmental economics is an example of

________ provides health benefits to people with low incomes, and ________ provides health benefits to most people over the age of 65.

On-the-job-training is an example of

If we consider one Gini coefficient for the entire population of the world, this coefficient has probably ________ in the last two decades.

About 75 percent of American women over the age of 16 are in the labor force.

Which of the following is an economic or political question regarding income redistribution?

The ________ in the United States is set at three times the cost of the Department of Agriculture's minimum food budget.

Individuals with more experience tend to earn more than individuals with less experience. This is because

The $1,000 you earned last year on your money market fund is an example of

Property income takes the form of

Medicaid is a health insurance program for the aged and certain disabled persons.

Education is an investment in human capital.

American workers in Iraq earn hazard pay. This is an example of a compensating differential.

If the official poverty line for a family of four is $15,000, then the Department of Agriculture's minimum food bundle costs a family of four ________ per year.

Human capital is a combination of inborn and acquired skills, talent, and knowledge.

In 2015, President Obama proposed increasing the minimum wage from $7.25/hr to $10.10/hr. According to theory, what would likely be the result of such an increase?

After-tax income is much less equally distributed than before-tax income.

Wage and property income before transfers and taxes is known as market income.

A progressive income tax means that those with a higher income pay

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

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