Question 1

Complete the following sentence.Passing on wealth from one generation to another

Accepted Answer

A) can decrease the inequality of wealth. 
B) will decrease the inequality of income. 
C) is limited since the government taxes this at a very high marginal tax rate. 
D) is one of the main causes of social unrest. 
E) will make the distribution of wealth more closely match the distribution of human capital. 
A) can decrease the inequality of wealth. 
B) will decrease the inequality of income. 
C) is limited since the government taxes this at a very high marginal tax rate. 
D) is one of the main causes of social unrest. 
E) will make the distribution of wealth more closely match the distribution of human capital.

Question 2

Use the figure below to answer the following questions.
   
Figure 19.3.5
-Refer to Figure 19.3.5.This figure shows the labour supply curves and the value of marginal product curves for high-skilled and low-skilled workers.The equilibrium wage rate for high-skilled workers is

Accepted Answer

A) $5 an hour. 
B) $4 an hour. 
C) $6 an hour. 
D) $8 an hour. 
E) $7 an hour. 
A) $5 an hour. 
B) $4 an hour. 
C) $6 an hour. 
D) $8 an hour. 
E) $7 an hour.

Question 3

From an examination of data on income and wealth,it can be concluded that

Accepted Answer

A) wealth distribution is more equal than income distribution. 
B) income distribution is more equal than wealth distribution. 
C) wealth distribution is equal to income distribution. 
D) income and wealth are the same. 
E) income and wealth are unrelated. 
A) wealth distribution is more equal than income distribution. 
B) income distribution is more equal than wealth distribution. 
C) wealth distribution is equal to income distribution. 
D) income and wealth are the same. 
E) income and wealth are unrelated.

Question 4

In 2009,the median household income in Canada was

Accepted Answer

A) $5,000. 
B) $25,000. 
C) $48,300. 
D) $59,700. 
E) $65,000. 
A) $5,000. 
B) $25,000. 
C) $48,300. 
D) $59,700. 
E) $65,000.

Question 5

In 2009,what percentage of households received the mode income in Canada?

Accepted Answer

A) 5 percent 
B) 10 percent 
C) 7 percent 
D) 17.4 percent 
E) 20 percent 
A) 5 percent 
B) 10 percent 
C) 7 percent 
D) 17.4 percent 
E) 20 percent

Question 6

Discrimination results in ________ compared to a situation with no discrimination.

Accepted Answer

A) a lower wage rate but no change in the number employed 
B) a higher numbered employed and a lower wage rate 
C) a smaller number employed but no change in the wage rate 
D) a smaller number employed and a lower wage rate 
E) none of the above 
A) a lower wage rate but no change in the number employed 
B) a higher numbered employed and a lower wage rate 
C) a smaller number employed but no change in the wage rate 
D) a smaller number employed and a lower wage rate 
E) none of the above

Question 7

Use the figure below to answer the following questions.
   
Figure 19.3.6
-Refer to Figure 19.3.6.If this is the market for a group of workers who are discriminated in favour of by consumers and point A represents the equilibrium without discrimination,which point represents the equilibrium for the workers who receive favourable discrimination?

Accepted Answer

A) D 
B) B 
C) I 
D) C 
E) H 
A) D 
B) B 
C) I 
D) C 
E) H

Question 8

Government transfer payments,such as welfare payments,redistribute income and

Accepted Answer

A) increase the incentive to work. 
B) improve economic efficiency. 
C) increase tax receipts. 
D) decrease the incentive to work. 
E) push the Lorenz curve further away from the line of equality. 
A) increase the incentive to work. 
B) improve economic efficiency. 
C) increase tax receipts. 
D) decrease the incentive to work. 
E) push the Lorenz curve further away from the line of equality.

Question 9

Among Canada,Finland,and South Africa,income is distributed most equally in ________ and least equally in ________.

Accepted Answer

A) South Africa;Finland 
B) Canada;South Africa 
C) South Africa;Canada 
D) Finland;Canada 
E) Finland;South Africa 
A) South Africa;Finland 
B) Canada;South Africa 
C) South Africa;Canada 
D) Finland;Canada 
E) Finland;South Africa

Question 10

Use the figure below to answer the following questions.
   
Figure 19.1.1
-Refer to Figure 19.11.The richest 20 percent of households receive what share of total income?

Accepted Answer

A) 10 percent 
B) 30 percent 
C) 40 percent 
D) 60 percent 
E) 100 percent 
A) 10 percent 
B) 30 percent 
C) 40 percent 
D) 60 percent 
E) 100 percent

Question 11

A generation that is wealthy and leaves assets to another generation that is not wealthy

Accepted Answer

A) increases the inequality of the income distribution. 
B) decreases the inequality of the income distribution. 
C) does not change the distribution of income. 
D) proves that inheritance taxes are needed. 
E) is improving efficiency. 
A) increases the inequality of the income distribution. 
B) decreases the inequality of the income distribution. 
C) does not change the distribution of income. 
D) proves that inheritance taxes are needed. 
E) is improving efficiency.

Question 12

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 poorest 20 percent of families earn 9 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 13

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 60 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 14

The redistribution of income creates the big tradeoff between ________.

Accepted Answer

A) receiving workers' compensation and not receiving workers' compensation 
B) equity and efficiency 
C) qualifying to receive employment insurance and not qualifying to receive employment insurance 
D) earning an income and losing welfare benefits 
E) being rich and being poor 
A) receiving workers' compensation and not receiving workers' compensation 
B) equity and efficiency 
C) qualifying to receive employment insurance and not qualifying to receive employment insurance 
D) earning an income and losing welfare benefits 
E) being rich and being poor

Question 15

In 2009,the 20 percent of households with the highest incomes received what percentage of the total after-tax income?

Accepted Answer

A) 14 percent 
B) 2 percent 
C) 71 percent 
D) 44.2 percent 
E) 55.8 percent 
A) 14 percent 
B) 2 percent 
C) 71 percent 
D) 44.2 percent 
E) 55.8 percent

Question 16

One criticism of social security programs such as the Guaranteed Income Supplement is that

Accepted Answer

A) it promotes efficiency rather than equity. 
B) it helps equity but hurts efficiency. 
C) it gives too much money to the elderly. 
D) it gives too much money to the poor. 
E) it gives too much money to the rich. 
A) it promotes efficiency rather than equity. 
B) it helps equity but hurts efficiency. 
C) it gives too much money to the elderly. 
D) it gives too much money to the poor. 
E) it gives too much money to the rich.

Question 17

Use the figure below to answer the following questions.
   
Figure 19.3.6
-Refer to Figure 19.3.6.This is the market for a group of workers.If point A represents the equilibrium for workers with higher human capital,which point represents the equilibrium for the workers with less human capital?

Accepted Answer

A) D 
B) B 
C) I 
D) C 
E) H 
A) D 
B) B 
C) I 
D) C 
E) H

Question 18

Market income equals

Accepted Answer

A) the wages, interest, rent, and profit earned in factor markets after paying income taxes. 
B) the wages, interest, and profit earned in factor markets before paying income taxes. 
C) the wages, interest, and rent earned in factor markets before paying income taxes. 
D) the wages, interest, rent, and profit earned in factor markets before paying income taxes. 
E) the wages, rent, and profit earned in factor markets before paying income taxes. 
A) the wages, interest, rent, and profit earned in factor markets after paying income taxes. 
B) the wages, interest, and profit earned in factor markets before paying income taxes. 
C) the wages, interest, and rent earned in factor markets before paying income taxes. 
D) the wages, interest, rent, and profit earned in factor markets before paying income taxes. 
E) the wages, rent, and profit earned in factor markets before paying income taxes.

Question 19

If the average tax rate decreases as income increases,the income tax is

Accepted Answer

A) progressive. 
B) proportional. 
C) negative. 
D) regressive. 
E) redistributive. 
A) progressive. 
B) proportional. 
C) negative. 
D) regressive. 
E) redistributive.

Question 20

Use the figure below to answer the following question.
   
Figure 19.3.4
-Refer to Figure 19.3.4.At an employment level of 30 hours per week,the compensation required for the cost of acquiring human capital is

Accepted Answer

A) $0. 
B) $2 an hour. 
C) $4 an hour. 
D) $6 an hour. 
E) cannot be determined without knowing the demand for labour. 
A) $0. 
B) $2 an hour. 
C) $4 an hour. 
D) $6 an hour. 
E) cannot be determined without knowing the demand for labour.

Exam 19: Economic Inequality

Complete the following sentence.Passing on wealth from one generation to another

Use the figure below to answer the following questions. Figure 19.3.5 -Refer to Figure 19.3.5.This figure shows the labour supply curves and the value of marginal product curves for high-skilled and low-skilled workers.The equilibrium wage rate for high-skilled workers is

From an examination of data on income and wealth,it can be concluded that

In 2009,the median household income in Canada was

In 2009,what percentage of households received the mode income in Canada?

Discrimination results in ________ compared to a situation with no discrimination.

Government transfer payments,such as welfare payments,redistribute income and

Among Canada,Finland,and South Africa,income is distributed most equally in ________ and least equally in ________.

Use the figure below to answer the following questions. Figure 19.1.1 -Refer to Figure 19.11.The richest 20 percent of households receive what share of total income?

A generation that is wealthy and leaves assets to another generation that is not wealthy

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 poorest 20 percent of families earn 9 percent of the income?

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 60 percent of the income?

The redistribution of income creates the big tradeoff between ________.

In 2009,the 20 percent of households with the highest incomes received what percentage of the total after-tax income?

One criticism of social security programs such as the Guaranteed Income Supplement is that

Use the figure below to answer the following questions. Figure 19.3.6 -Refer to Figure 19.3.6.This is the market for a group of workers.If point A represents the equilibrium for workers with higher human capital,which point represents the equilibrium for the workers with less human capital?

Market income equals

If the average tax rate decreases as income increases,the income tax is

Use the figure below to answer the following question. Figure 19.3.4 -Refer to Figure 19.3.4.At an employment level of 30 hours per week,the compensation required for the cost of acquiring human capital is

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

Output and Costs

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Externalities

Public Goods and Common Resources

Markets for Factors of Production

Measuring GDP and Economic Growth

Monitoring Jobs and Inflation

Economic Growth

Finance, Saving, and Investment

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

Monetary Policy

International Trade Policy

Filters

Among Canada,Finland,and South Africa,income is distributed most equally in and least equally in .