Question 1

Opponents of income redistribution argue that

Accepted Answer

A)  redistribution violates the proposition that "one is entitled to the fruits of one's efforts." 
B)  property income is less just than labor income and thus redistribution of that income is justified. 
C)  redistribution encourages too much competition. 
D)  Both A and C are correct. 
A)  redistribution violates the proposition that "one is entitled to the fruits of one's efforts." 
B)  property income is less just than labor income and thus redistribution of that income is justified. 
C)  redistribution encourages too much competition. 
D)  Both A and C are correct.

Question 2

Recent data suggests that the percentage of the population in poverty for African-American families is approximately five times that of white families.

Accepted Answer

A) True 
 B)False

Question 3

According to ________, the redistribution of income from the rich to the poor causes an increase in total utility because of the law of decreasing marginal utility.

Accepted Answer

A)  utilitarian justice 
B)  distributional justice 
C)  legal precedent 
D)  the labor theory of value 
A)  utilitarian justice 
B)  distributional justice 
C)  legal precedent 
D)  the labor theory of value

Question 4

A Gini coefficient of ________ means that the income is equally distributed.

Accepted Answer

A)  0 
B)  1 
C)  50 
D)  100 
A)  0 
B)  1 
C)  50 
D)  100

Question 5

The idea of utilitarian justice was first proposed by

Accepted Answer

A)  John Stuart Mill. 
B)  John Rawls. 
C)  Karl Marx. 
D)  None of the above is correct. 
A)  John Stuart Mill. 
B)  John Rawls. 
C)  Karl Marx. 
D)  None of the above is correct.

Question 6

EBT cards are

Accepted Answer

A)  only available to low-income families with children. 
B)  fully funded through state tax revenues. 
C)  used to subsidize grocery purchases. 
D)  bought and sold in a perfectly competitive market. 
A)  only available to low-income families with children. 
B)  fully funded through state tax revenues. 
C)  used to subsidize grocery purchases. 
D)  bought and sold in a perfectly competitive market.

Question 7

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. The second poorest fifth of families earned ________% of income in Outland.

Accepted Answer

A)  5 
B)  7 
C)  12 
D)  17 
A)  5 
B)  7 
C)  12 
D)  17

Question 8

All of the following are programs in the Social Security system except

Accepted Answer

A)  the Old Age and Survivors Insurance program. 
B)  the Medicare program. 
C)  the Disability Insurance program. 
D)  the Temporary Assistance to Needy Families (TANF) program. 
A)  the Old Age and Survivors Insurance program. 
B)  the Medicare program. 
C)  the Disability Insurance program. 
D)  the Temporary Assistance to Needy Families (TANF) program.

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. The wealthiest fifth of families earned ________% of income in Outland.

Accepted Answer

A)  20 
B)  40 
C)  60 
D)  95 
A)  20 
B)  40 
C)  60 
D)  95

Question 10

The idea that individuals who work for companies should receive at least an equitable hourly income is known as

Accepted Answer

A)  minimum wage. 
B)  compensating differential. 
C)  economic income. 
D)  transfer payment. 
A)  minimum wage. 
B)  compensating differential. 
C)  economic income. 
D)  transfer payment.

Question 11

The notion of utilitarian justice is that

Accepted Answer

A)  through income redistribution, the rich sacrifice a little and the poor gain a lot. 
B)  any change that makes some people better off without making anyone worse off should be undertaken. 
C)  income should be distributed so that the well-being of the worse-off member of society should be maximized. 
D)  income should be distributed according to an individual's needs. 
A)  through income redistribution, the rich sacrifice a little and the poor gain a lot. 
B)  any change that makes some people better off without making anyone worse off should be undertaken. 
C)  income should be distributed so that the well-being of the worse-off member of society should be maximized. 
D)  income should be distributed according to an individual's needs.

Question 12

The idea that a dollar in the hand of a rich person is worth less than a dollar in the hand of a poor person is a consequence of ________ justice.

Accepted Answer

A)  utilitarian 
B)  social 
C)  Rawlsian 
D)  absolute 
A)  utilitarian 
B)  social 
C)  Rawlsian 
D)  absolute

Question 13

Of the following countries, which has the highest level of inequality with respect to disposable income?

Accepted Answer

A)  Norway 
B)  Germany 
C)  Chile 
D)  Spain 
A)  Norway 
B)  Germany 
C)  Chile 
D)  Spain

Question 14

The primary function of the SNAP program has been to provide subsidies for grocery purchases for low-income families.

Accepted Answer

A) True 
 B)False

Question 15

If all individuals have identical utility functions and the marginal utility of income decreases as income increases, transferring income ________ will ________ total utility.

Accepted Answer

A)  from the rich to the poor; increase 
B)  from the rich to the poor; decrease 
C)  from the rich to the poor; not change 
D)  from the poor to the rich; not change 
A)  from the rich to the poor; increase 
B)  from the rich to the poor; decrease 
C)  from the rich to the poor; not change 
D)  from the poor to the rich; not change

Question 16

Property income generally takes the form of all of the following except

Accepted Answer

A)  transfer payments. 
B)  interest. 
C)  profits. 
D)  dividends. 
A)  transfer payments. 
B)  interest. 
C)  profits. 
D)  dividends.

Question 17

Employees with less experience tend to earn less than employees with more experience, because

Accepted Answer

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

Question 18

Poverty rates among the elderly have risen in the past few decades.

Accepted Answer

A) True 
 B)False

Question 19

You and your sister are splitting a pizza. You cut it in half and your sister selects her half 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 20

The primary assumption made in ________ justice is that people are risk ________.

Accepted Answer

A)  Rawlsian; averse 
B)  Rawlsian; loving 
C)  utilitarian; averse 
D)  utilitarian; loving 
A)  Rawlsian; averse 
B)  Rawlsian; loving 
C)  utilitarian; averse 
D)  utilitarian; loving

Exam 18: Income Distribution and Poverty

Opponents of income redistribution argue that

Recent data suggests that the percentage of the population in poverty for African-American families is approximately five times that of white families.

According to ________, the redistribution of income from the rich to the poor causes an increase in total utility because of the law of decreasing marginal utility.

A Gini coefficient of ________ means that the income is equally distributed.

The idea of utilitarian justice was first proposed by

EBT cards are

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. The second poorest fifth of families earned ________% of income in Outland.

All of the following are programs in the Social Security system except

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. The wealthiest fifth of families earned ________% of income in Outland.

The idea that individuals who work for companies should receive at least an equitable hourly income is known as

The notion of utilitarian justice is that

The idea that a dollar in the hand of a rich person is worth less than a dollar in the hand of a poor person is a consequence of ________ justice.

Of the following countries, which has the highest level of inequality with respect to disposable income?

The primary function of the SNAP program has been to provide subsidies for grocery purchases for low-income families.

If all individuals have identical utility functions and the marginal utility of income decreases as income increases, transferring income ________ will ________ total utility.

Property income generally takes the form of all of the following except

Employees with less experience tend to earn less than employees with more experience, because

Poverty rates among the elderly have risen in the past few decades.

You and your sister are splitting a pizza. You cut it in half and your sister selects her half first. Thus, you cut it into two equally sized pieces. This is an example of

The primary assumption made in ________ justice is that people are risk ________.

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

If all individuals have identical utility functions and the marginal utility of income decreases as income increases, transferring income will total utility.

The primary assumption made in justice is that people are risk .