Question 1

Between 1980 and 2000,the world Gini ratio ________ indicating ________ in the world distribution of income.

Accepted Answer

A) fell;greater equality 
B) fell;greater inequality 
C) did not change;no change 
D) rose;greater equality 
E) rose;greater inequality 
A) fell;greater equality 
B) fell;greater inequality 
C) did not change;no change 
D) rose;greater equality 
E) rose;greater inequality

Question 2

In the absence of government policies to redistribute income,the income distribution will be the

Accepted Answer

A) market distribution. 
B) unfair distribution. 
C) capitalist distribution. 
D) efficient distribution. 
E) line of equality. 
A) market distribution. 
B) unfair distribution. 
C) capitalist distribution. 
D) efficient distribution. 
E) line of equality.

Question 3

Policies that result in a redistribution of income toward the poor include all of the following except

Accepted Answer

A) public provision of elementary education. 
B) public provision of high school education. 
C) public provision of health-care services. 
D) public excise taxes. 
E) public provision of subsidized university education. 
A) public provision of elementary education. 
B) public provision of high school education. 
C) public provision of health-care services. 
D) public excise taxes. 
E) public provision of subsidized university education.

Question 4

Use the figure below to answer the following questions.
   
Figure 19.1.2
-Consider the Lorenz curves in Figure 19.1.2.Which point indicates that the richest 20 percent of families earn 80 percent of the income?

Accepted Answer

A) a 
B) b 
C) c 
D) d 
E) none of the above 
A) a 
B) b 
C) c 
D) d 
E) none of the above

Question 5

Total income equals

Accepted Answer

A) market income minus payments to firms by governments. 
B) market income plus cash payments to households by governments. 
C) the wages, interest, rent, and profit earned in factor markets before paying income taxes. 
D) the wages, interest, rent, and profit earned in factor markets after paying income taxes. 
E) market income minus cash payments to households by governments. 
A) market income minus payments to firms by governments. 
B) market income plus cash payments to households by governments. 
C) the wages, interest, rent, and profit earned in factor markets before paying income taxes. 
D) the wages, interest, rent, and profit earned in factor markets after paying income taxes. 
E) market income minus cash payments to households by governments.

Question 6

After-tax income equals

Accepted Answer

A) total income minus tax payments by households to governments. 
B) total income minus tax payments by households to firms. 
C) total income plus tax payments by households to governments. 
D) market income plus cash payments to households by governments. 
E) market income minus tax payments by households to governments. 
A) total income minus tax payments by households to governments. 
B) total income minus tax payments by households to firms. 
C) total income plus tax payments by households to governments. 
D) market income plus cash payments to households by governments. 
E) market income minus tax payments by households to governments.

Question 7

In 2009,the middle 20 percent of households received what percentage of total Canadian after-tax income?

Accepted Answer

A) 10.6 percent 
B) 16.3 percent 
C) 25 percent 
D) 43 percent 
E) 52 percent 
A) 10.6 percent 
B) 16.3 percent 
C) 25 percent 
D) 43 percent 
E) 52 percent

Question 8

In Canada,the highest income tax rates are in

Accepted Answer

A) Quebec. 
B) Manitoba. 
C) Alberta. 
D) Ontario. 
E) British Columbia. 
A) Quebec. 
B) Manitoba. 
C) Alberta. 
D) Ontario. 
E) British Columbia.

Question 9

Complete the following sentence.Assortative mating

Accepted Answer

A) tends to breakdown barriers between the social classes. 
B) tends to increase the equality of the income distribution. 
C) tends to increase the equality of the distribution of wealth. 
D) tends to keep the income and wealth distributions from becoming more equal. 
E) occurs rarely these days due to changes in social values. 
A) tends to breakdown barriers between the social classes. 
B) tends to increase the equality of the income distribution. 
C) tends to increase the equality of the distribution of wealth. 
D) tends to keep the income and wealth distributions from becoming more equal. 
E) occurs rarely these days due to changes in social values.

Question 10

In an economy in 2011,3 million people had full-time managerial and professional jobs that paid an average of $800 a week.At the same time,1 million people had full-time sales positions that paid an average of $530 a week.Managers and professionals are paid more than salespeople because ________.

Accepted Answer

A) the supply curve of managers and professionals lies above that of salespeople 
B) the demand curve for managers and professionals lies above that of salespeople 
C) managers and professionals have a a higher value of marginal product 
D) the typical manager or professional has incurred a higher cost of education 
E) all of the above 
A) the supply curve of managers and professionals lies above that of salespeople 
B) the demand curve for managers and professionals lies above that of salespeople 
C) managers and professionals have a a higher value of marginal product 
D) the typical manager or professional has incurred a higher cost of education 
E) all of the above

Question 11

Use the figure below to answer the following questions.
   
Figure 19.3.1
-Refer to Figure 19.2.1.For any given quantity of labour employed,

Accepted Answer

A) the elasticity of demand for high-skilled labourers is less than the elasticity of demand for low-skilled labourers. 
B) high-skilled labourers will receive a lower wage than low-skilled labourers. 
C) high-skilled labourers will receive a greater wage than low-skilled labourers. 
D) the vertical distance between the two demand curves is the compensation for the cost of acquiring the skill. 
E) the vertical distance between the two curves is the present value of human capital. 
A) the elasticity of demand for high-skilled labourers is less than the elasticity of demand for low-skilled labourers. 
B) high-skilled labourers will receive a lower wage than low-skilled labourers. 
C) high-skilled labourers will receive a greater wage than low-skilled labourers. 
D) the vertical distance between the two demand curves is the compensation for the cost of acquiring the skill. 
E) the vertical distance between the two curves is the present value of human capital.

Question 12

The greater the value of marginal product of labour,

Accepted Answer

A) the greater is the supply of labour. 
B) the greater is the demand for labour. 
C) the greater is the marginal cost of production. 
D) the greater is unemployment. 
E) the lower is the wage rate. 
A) the greater is the supply of labour. 
B) the greater is the demand for labour. 
C) the greater is the marginal cost of production. 
D) the greater is unemployment. 
E) the lower is the wage rate.

Question 13

The group that faces the weakest incentive to work are

Accepted Answer

A) those who pay the highest income tax rate 
B) those who pay the lowest income tax rate. 
C) the middle class. 
D) households that benefit from welfare. 
E) all of the above. 
A) those who pay the highest income tax rate 
B) those who pay the lowest income tax rate. 
C) the middle class. 
D) households that benefit from welfare. 
E) all of the above.

Question 14

In Canada,the lowest income tax rates are in

Accepted Answer

A) British Columbia. 
B) Quebec. 
C) Manitoba. 
D) Alberta. 
E) Ontario. 
A) British Columbia. 
B) Quebec. 
C) Manitoba. 
D) Alberta. 
E) Ontario.

Question 15

The Gini coefficient for a perfectly equal distribution of income is

Accepted Answer

A) equal to zero. 
B) equal to 1. 
C) equal to 100. 
D) equal to infinity. 
E) negative. 
A) equal to zero. 
B) equal to 1. 
C) equal to 100. 
D) equal to infinity. 
E) negative.

Question 16

Household characteristics that stand out when determining the incidence of poverty include all of the following except

Accepted Answer

A) household type. 
B) education. 
C) age of householder. 
D) ethnic background. 
E) number of children. 
A) household type. 
B) education. 
C) age of householder. 
D) ethnic background. 
E) number of children.

Question 17

Use the figure below to answer the following questions.
   
Figure 19.1.2
-Which point in Figure 19.1.2 indicates that the richest 20 percent of families earn 40 percent of the income?

Accepted Answer

A) a 
B) b 
C) c 
D) d 
E) none of the above 
A) a 
B) b 
C) c 
D) d 
E) none of the above

Question 18

Use the figure below to answer the following questions.
   
Figure 19.1.3
-In Figure 19.1.3,the second poorest 20 percent of all families receive what share of income?

Accepted Answer

A) 10 percent 
B) 20 percent 
C) 30 percent 
D) 40 percent 
E) none of the above 
A) 10 percent 
B) 20 percent 
C) 30 percent 
D) 40 percent 
E) none of the above

Question 19

Use the figure below to answer the following questions.
   
Figure 19.1.3
-In Figure 19.1.3,the second richest 20 percent of all families receive what share of income?

Accepted Answer

A) 10 percent 
B) 20 percent 
C) 30 percent 
D) 40 percent 
E) none of the above 
A) 10 percent 
B) 20 percent 
C) 30 percent 
D) 40 percent 
E) none of the above

Question 20

The wealthiest 10 percent of Canadian families own approximately

Accepted Answer

A) 10 percent of the wealth. 
B) 17 percent of the wealth. 
C) 56 percent of the wealth. 
D) 67 percent of the wealth. 
E) 80 percent of the wealth. 
A) 10 percent of the wealth. 
B) 17 percent of the wealth. 
C) 56 percent of the wealth. 
D) 67 percent of the wealth. 
E) 80 percent of the wealth.

Exam 19: Economic Inequality

Between 1980 and 2000,the world Gini ratio ________ indicating ________ in the world distribution of income.

In the absence of government policies to redistribute income,the income distribution will be the

Policies that result in a redistribution of income toward the poor include all of the following except

Use the figure below to answer the following questions. Figure 19.1.2 -Consider the Lorenz curves in Figure 19.1.2.Which point indicates that the richest 20 percent of families earn 80 percent of the income?

Total income equals

After-tax income equals

In 2009,the middle 20 percent of households received what percentage of total Canadian after-tax income?

In Canada,the highest income tax rates are in

Complete the following sentence.Assortative mating

In an economy in 2011,3 million people had full-time managerial and professional jobs that paid an average of $800 a week.At the same time,1 million people had full-time sales positions that paid an average of $530 a week.Managers and professionals are paid more than salespeople because ________.

Use the figure below to answer the following questions. Figure 19.3.1 -Refer to Figure 19.2.1.For any given quantity of labour employed,

The greater the value of marginal product of labour,

The group that faces the weakest incentive to work are

In Canada,the lowest income tax rates are in

The Gini coefficient for a perfectly equal distribution of income is

Household characteristics that stand out when determining the incidence of poverty include all of the following except

Use the figure below to answer the following questions. Figure 19.1.2 -Which point in Figure 19.1.2 indicates that the richest 20 percent of families earn 40 percent of the income?

Use the figure below to answer the following questions. Figure 19.1.3 -In Figure 19.1.3,the second poorest 20 percent of all families receive what share of income?

Use the figure below to answer the following questions. Figure 19.1.3 -In Figure 19.1.3,the second richest 20 percent of all families receive what share of income?

The wealthiest 10 percent of Canadian families own approximately

What Is Economics?

The Economic Problem

Demand and Supply

Elasticity

Efficiency and Equity

Government Actions in Markets

Global Markets in Action

Utility and Demand

Possibilities, Preferences, and Choices

Organizing Production

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Perfect Competition

Monopoly

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Money, the Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers: The Keynesian Model

Canadian Inflation, Unemployment, and Business Cycle

Fiscal Policy

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Between 1980 and 2000,the world Gini ratio indicating in the world distribution of income.