Question 1

A follower of liberalism would not support a redistribution of income but rather would focus on equalizing opportunities.

Accepted Answer

A) True 
 B)False

Question 2

Economists Cox and Alm compared the gap between rich and poor and found that the richest 20% was about 15 times better off than the poorest 20% when they compared what data?

Accepted Answer

The answer of Economists Cox and Alm compared the gap...

Question 3

The elderly represent the largest demographic group in poverty.

Accepted Answer

A) True 
 B)False

Question 4

Since the early 1970s, welfare benefits have declined,

Accepted Answer

A) which is largely due to the success of the negative income tax program. 
B) which is largely due to the success of private charities. 
C) yet the percentage of children living with only one parent has increased. 
D) and the percentage of children living with only one parent has decreased. 
A) which is largely due to the success of the negative income tax program. 
B) which is largely due to the success of private charities. 
C) yet the percentage of children living with only one parent has increased. 
D) and the percentage of children living with only one parent has decreased.

Question 5

When comparing the percentage of income (or expenditure) of the lowest and highest 10 percent of the population,

Accepted Answer

A) South Africa has a more equal income distribution than the United States. 
B) South Africa has a more equal income distribution than Japan. 
C) Japan has a more equal income distribution than the United States. 
D) Mexico has a more equal income distribution than Germany. 
A) South Africa has a more equal income distribution than the United States. 
B) South Africa has a more equal income distribution than Japan. 
C) Japan has a more equal income distribution than the United States. 
D) Mexico has a more equal income distribution than Germany.

Question 6

Which of the following groups has the highest poverty rate?

Accepted Answer

A) blacks 
B) Asians 
C) children (under age 18) 
D) female households, no spouse present 
A) blacks 
B) Asians 
C) children (under age 18) 
D) female households, no spouse present

Question 7

The United States has more income inequality than Japan, Germany, and France.

Accepted Answer

A) True 
 B)False

Question 8

Which political philosophy concludes that equality of opportunities is more important than equality of outcomes?

Accepted Answer

The answer of Which political philosophy concludes that equality of...

Question 9

Table 20-3
The Distribution of Income in Edgerton  
-Refer to Table 20-3. According to the table, what percent of families in Edgerton have income levels below $44,000?

Accepted Answer

A) 80 percent 
B) 60 percent 
C) 50 percent 
D) 40 percent 
A) 80 percent 
B) 60 percent 
C) 50 percent 
D) 40 percent

Question 10

Suppose that Jamal is moving to a state where personal incomes are distributed randomly. If Jamal believes in liberalism, he would prefer

Accepted Answer

A) an income distribution that is relatively equal. 
B) that everyone has the same work opportunities and market-determined wage rates. 
C) that private property be transformed to government property to safeguard people's incomes. 
D) less economic assistance to the poor because it distorts the price system. 
A) an income distribution that is relatively equal. 
B) that everyone has the same work opportunities and market-determined wage rates. 
C) that private property be transformed to government property to safeguard people's incomes. 
D) less economic assistance to the poor because it distorts the price system.

Question 11

Marco earns more than Antonio. A legislator proposes taxing Marco to supplement Antonio's income. A libertarian would view this proposal as

Accepted Answer

A) a way to improve the welfare of all in society. 
B) a way to enhance Antonio's income in a socially responsible way. 
C) validation of the role of diminishing marginal utility over the maximin criterion. 
D) an inappropriate role for government, since government should not redistribute income. 
A) a way to improve the welfare of all in society. 
B) a way to enhance Antonio's income in a socially responsible way. 
C) validation of the role of diminishing marginal utility over the maximin criterion. 
D) an inappropriate role for government, since government should not redistribute income.

Question 12

-Refer to Table 20-13. The Human Development Report computes a measure of inequality by dividing the income of the richest 10% of the population by the income of the poorest 10%. If the value for this measure of inequality in the US is 15.9 and the value for India is 8.6, how does Imagination compare to these two nations?

Accepted Answer

Imagination has a mo

Question 13

Table 20-1
The following table shows the distribution of income in Marysville.  
-Refer to Table 20-1. Seventy-five percent of all families have incomes above what level?

Accepted Answer

A) $30,000 
B) $60,000 
C) $90,000 
D) There is insufficient information to answer this question. 
A) $30,000 
B) $60,000 
C) $90,000 
D) There is insufficient information to answer this question.

Question 14

Libertarianism identifies a redistribution of income role for government when

Accepted Answer

A) the utility of the worst-off could be improved. 
B) the income distribution is altered by illegal means (e.g. theft). 
C) the total utility for society can be improved through redistribution of income. 
D) a "veil of ignorance" would result in a recommendation of redistribution of income. 
A) the utility of the worst-off could be improved. 
B) the income distribution is altered by illegal means (e.g. theft). 
C) the total utility for society can be improved through redistribution of income. 
D) a "veil of ignorance" would result in a recommendation of redistribution of income.

Question 15

Table 20-11
Poverty Thresholds in 2011, by Size of Family and Number of Related Children Under 18 Years
[Dollars]   Source: U. S. Bureau of the Census, Current Population Survey.
-Refer to Table 20-11. What is the poverty line for a family with one 35-year-old adult and one child?

Accepted Answer

A) $11,702 
B) $15,446 
C) $15,504 
D) $18,106 
A) $11,702 
B) $15,446 
C) $15,504 
D) $18,106

Question 16

Minimum wage laws

Accepted Answer

A) benefit all unskilled workers. 
B) create unemployment, but if demand is relatively elastic, the unemployment effects will be minor. 
C) may help the nonpoor, such as teenagers from wealthy families. 
D) reduce poverty by reducing unemployment. 
A) benefit all unskilled workers. 
B) create unemployment, but if demand is relatively elastic, the unemployment effects will be minor. 
C) may help the nonpoor, such as teenagers from wealthy families. 
D) reduce poverty by reducing unemployment.

Question 17

Explain what information is contained in the poverty rate statistic. Are there problems in using an absolute scale to measure poverty? If so, explain them.

Accepted Answer

The poverty rate is the percentage of th

Question 18

Table 20-6  
-Refer to Table 20-6. A person who is concerned that income inequality has worsened between 2011 and 2012 would cite which of the following statistics to support her position?

Accepted Answer

A) The percentage of people earning less than $25,000 decreased from 2011 to 2012. 
B) The percentage of people earning more than $100,000 increased from 2011 to 2012. 
C) The percentage of people earning between $50,000 and $100,000 stayed virtually constant from 2011 to 2012. 
D) Both a and b are correct. 
A) The percentage of people earning less than $25,000 decreased from 2011 to 2012. 
B) The percentage of people earning more than $100,000 increased from 2011 to 2012. 
C) The percentage of people earning between $50,000 and $100,000 stayed virtually constant from 2011 to 2012. 
D) Both a and b are correct.

Question 19

Libertarians believe that

Accepted Answer

A) it is more important to evaluate the process by which economic outcomes are produced than the outcomes themselves. 
B) government should attempt to redistribute income from the rich to the poor when the gap between rich and poor is more than 20%. 
C) equality of income is more important than equality of opportunity. 
D) it is more important to evaluate economic outcomes first and then the process that produced them. 
A) it is more important to evaluate the process by which economic outcomes are produced than the outcomes themselves. 
B) government should attempt to redistribute income from the rich to the poor when the gap between rich and poor is more than 20%. 
C) equality of income is more important than equality of opportunity. 
D) it is more important to evaluate economic outcomes first and then the process that produced them.

Question 20

Table 20-2
Percentage of Before-Tax Income Received by Families in Hapland  
-Refer to Table 20-2. According to the table, from 1950 to 2000, the Hapland income distribution became

Accepted Answer

A) less equal. 
B) more equal. 
C) more equal at the lowest level of income but less equal at highest level of income. 
D) less equal at the lowest level of income but more equal at highest level of income. 
A) less equal. 
B) more equal. 
C) more equal at the lowest level of income but less equal at highest level of income. 
D) less equal at the lowest level of income but more equal at highest level of income.

Exam 20: Income Inequality and Poverty

A follower of liberalism would not support a redistribution of income but rather would focus on equalizing opportunities.

Economists Cox and Alm compared the gap between rich and poor and found that the richest 20% was about 15 times better off than the poorest 20% when they compared what data?

The elderly represent the largest demographic group in poverty.

Since the early 1970s, welfare benefits have declined,

When comparing the percentage of income (or expenditure) of the lowest and highest 10 percent of the population,

Which of the following groups has the highest poverty rate?

The United States has more income inequality than Japan, Germany, and France.

Which political philosophy concludes that equality of opportunities is more important than equality of outcomes?

Table 20-3 The Distribution of Income in Edgerton -Refer to Table 20-3. According to the table, what percent of families in Edgerton have income levels below $44,000?

Suppose that Jamal is moving to a state where personal incomes are distributed randomly. If Jamal believes in liberalism, he would prefer

Marco earns more than Antonio. A legislator proposes taxing Marco to supplement Antonio's income. A libertarian would view this proposal as

Table 20-1 The following table shows the distribution of income in Marysville. -Refer to Table 20-1. Seventy-five percent of all families have incomes above what level?

Libertarianism identifies a redistribution of income role for government when

Table 20-11 Poverty Thresholds in 2011, by Size of Family and Number of Related Children Under 18 Years [Dollars] Source: U. S. Bureau of the Census, Current Population Survey. -Refer to Table 20-11. What is the poverty line for a family with one 35-year-old adult and one child?

Minimum wage laws

Explain what information is contained in the poverty rate statistic. Are there problems in using an absolute scale to measure poverty? If so, explain them.

Table 20-6 -Refer to Table 20-6. A person who is concerned that income inequality has worsened between 2011 and 2012 would cite which of the following statistics to support her position?

Libertarians believe that

Table 20-2 Percentage of Before-Tax Income Received by Families in Hapland -Refer to Table 20-2. According to the table, from 1950 to 2000, the Hapland income distribution became

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Elasticity and Its Application

Supply, Demand, and Government Policies

Consumers, Producers, and the Efficiency of Markets

Application: The Costs of Taxation

Application: International Trade

Externalities

Public Goods and Common Resources

The Design of the Tax System

The Costs of Production

Firms in Competitive Markets

Monopoly

Monopolistic Competition

Oligopoly

The Markets for the Factors of Production

Earnings and Discrimination

The Theory of Consumer Choice

Frontiers in Microeconomics

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