Question 1

If a society decides to reduce the level of economic inequality, which of the following sets of tools can it use?

Accepted Answer

A)  a tax imposed on the value of inheritances 
B)  redistribution from those with high incomes to those with low incomes 
C)  trying to assure that a ladder of opportunity is widely available 
D)  the three mains sets of tools it can use include all of the above 
A)  a tax imposed on the value of inheritances 
B)  redistribution from those with high incomes to those with low incomes 
C)  trying to assure that a ladder of opportunity is widely available 
D)  the three mains sets of tools it can use include all of the above

Question 2

Economic inequality compares the share of the _______
In society that is received by
Different groups; such as comparing the share of income received by the _______ to the share of income received by the _______.

Accepted Answer

A)  total wealth; top 10%; bottom 10% 
B)  answers a and c are correct. 
C)  total income; bottom 10%; top 10% 
D)  none of the above are correct. 
A)  total wealth; top 10%; bottom 10% 
B)  answers a and c are correct. 
C)  total income; bottom 10%; top 10% 
D)  none of the above are correct.

Question 3

Lance is a single father with 1 child. He can work as a bagger at the local grocery store for $6 per hour up to 1,200 hours per year. He is eligible for welfare, and if he does not earn any income, he will receive $15,000 a year. If Lance works, the government policy is to deduct 60 cents from his welfare stipend for every $1 that he earns in income. When Lance works 1,200 hours, he receives _______ in government support and his total income is _______.

Accepted Answer

A)  $10,680, $15,000 
B)  $7,800, $15,000 
C)  $10,680, $17,880 
D)  $7,800, $17,880 
A)  $10,680, $15,000 
B)  $7,800, $15,000 
C)  $10,680, $17,880 
D)  $7,800, $17,880

Question 4

The greater inequality of wages can be viewed as a sign that

Accepted Answer

A)  demand for skilled labor is increasing faster than supply. 
B)  supply for skilled labor is decreasing faster than demand. 
C)  demand for skilled labor is decreasing faster than supply. 
D)  supply for skilled labor is increasing faster than demand. 
A)  demand for skilled labor is increasing faster than supply. 
B)  supply for skilled labor is decreasing faster than demand. 
C)  demand for skilled labor is decreasing faster than supply. 
D)  supply for skilled labor is increasing faster than demand.

Question 5

Measuring economic inequality involves comparing those with _______.

Accepted Answer

A)  high incomes and those below the poverty line 
B)  high incomes and those with low incomes 
C)  high incomes middle incomes, and low incomes 
D)  high incomes and those near the poverty line 
A)  high incomes and those below the poverty line 
B)  high incomes and those with low incomes 
C)  high incomes middle incomes, and low incomes 
D)  high incomes and those near the poverty line

Question 6

How does being caught in a poverty tap affect an individual's future job prospects?

Accepted Answer

A)  it causes working in the future even less attractive 
B)  it causes a lack of job experience and contacts 
C)  it creates a powerful incentive to acquire skills training 
D)  it creates the outcomes presented in both a and b 
A)  it causes working in the future even less attractive 
B)  it causes a lack of job experience and contacts 
C)  it creates a powerful incentive to acquire skills training 
D)  it creates the outcomes presented in both a and b

Question 7

Suppose that new high-technology farming equipment is developed. These new machines are substitutes for low-income workers such as farm laborers, but they are complements for high- income workers such as farm technicians and farm owners. This new technology will shift the demand curve for low-income workers to the _______ while shifting the demand curve for high-
Income workers to the _______.

Accepted Answer

A)  left, left 
B)  left, right 
C)  right, left 
D)  right, right 
A)  left, left 
B)  left, right 
C)  right, left 
D)  right, right

Question 8

In circumstances dealing with poverty, the term _______ means taking income from those with higher incomes and providing income to those with lower incomes.

Accepted Answer

A)  safety net 
B)  estate tax 
C)  minimum wage 
D)  redistribution 
A)  safety net 
B)  estate tax 
C)  minimum wage 
D)  redistribution

Question 9

Why did inequality of household income increase in the United States in recent decades?

Accepted Answer

A)  growth of single-parent families at the top end of the income distribution 
B)  higher-earner couples near the top end of the income distribution 
C)  increase in earnings received by high-skilled labor relative to low-skilled labor 
D)  demand for high-skilled labor at higher wages increased and b and c 
A)  growth of single-parent families at the top end of the income distribution 
B)  higher-earner couples near the top end of the income distribution 
C)  increase in earnings received by high-skilled labor relative to low-skilled labor 
D)  demand for high-skilled labor at higher wages increased and b and c

Question 10

In the U.S., poverty rates are relatively low

Accepted Answer

A)  for the elderly 
B)  for the well-educated 
C)  for the male-headed households 
D)  for whites and all of the above 
A)  for the elderly 
B)  for the well-educated 
C)  for the male-headed households 
D)  for whites and all of the above

Question 11

Briefly explain how markets determine wages and where this can lead.

Accepted Answer

Labor markets will determine w

Question 12

There seems to be little evidence that poor families experienced _______ as a result of _______.

Accepted Answer

A)  a tax refund; having earned income 
B)  a tax break; having earned income 
C)  an increased standard of living; EIC 
D)  a reduced standard of living; TANF 
A)  a tax refund; having earned income 
B)  a tax break; having earned income 
C)  an increased standard of living; EIC 
D)  a reduced standard of living; TANF

Question 13

Identify what the groups of government programs that assist the poor are called and provide examples of the prominent programs that are provided in the U.S..

Accepted Answer

The groups of government programs that a

Question 14

If incomes rise for both low-income and high-income workers, but rise less for the high- income workers,

Accepted Answer

A)  then poverty will rise and inequality will fall 
B)  then poverty will fall and inequality will rise. 
C)  then poverty will rise and inequality will rise. 
D)  then poverty will fall and inequality will fall. 
A)  then poverty will rise and inequality will fall 
B)  then poverty will fall and inequality will rise. 
C)  then poverty will rise and inequality will rise. 
D)  then poverty will fall and inequality will fall.

Question 15

Briefly compare and contrast poverty and economic inequality.

Accepted Answer

Poverty and economic inequality are not

Question 16

Briefly discuss how income inequality in the U.S. has increased from the 1970s into the 2000s, as well as the two most common explanations cited by economists for this change.

Accepted Answer

Income inequality in the United States i

Question 17

Briefly compare and contrast the effects and outcomes of pushing too aggressively and pushing moderately for economic equality.

Accepted Answer

Pushing too aggressively for economic eq

Question 18

Which of the following is a safety net that could provide a decent standard of living and/or incentives to work?

Accepted Answer

A)  government-subsidized school lunches and breakfasts 
B)  Low Income Home Energy Assistance Program 
C)  the Special Supplemental Food Program for WIC 
D)  Supplemental Security Income and the above 
A)  government-subsidized school lunches and breakfasts 
B)  Low Income Home Energy Assistance Program 
C)  the Special Supplemental Food Program for WIC 
D)  Supplemental Security Income and the above

Question 19

Bruce is a single father with 1 child. He can work as a bagger at the local grocery store for $6 per hour up to 1,200 hours per year. He is eligible for welfare, and if he does not earn any income, he will receive $15,000 a year. If Bruce works, the government policy is to deduct 60
Cents from his welfare stipend for every $1 that he earns in income. With this policy in place, if Bruce works 600 hours, his income will be

Accepted Answer

A)  $3,600 
B)  $16,440 
C)  $15,000 
D)  $12,840 
A)  $3,600 
B)  $16,440 
C)  $15,000 
D)  $12,840

Question 20

A group of 10 golfing buddies have the following annual incomes: $32,000, $12,000, $56,000,
$120,000, $10,000, $38,000, $70,000, $16,000, $20,000, $24,000. The share of income received by the third quintile of this income distribution is

Accepted Answer

A)  13.1% 
B)  13.9% 
C)  14.1% 
D)  14.9% 
A)  13.1% 
B)  13.9% 
C)  14.1% 
D)  14.9%

If a society decides to reduce the level of economic inequality, which of the following sets of tools can it use?

Economic inequality compares the share of the ___ In society that is received by Different groups; such as comparing the share of income received by the _ to the share of income received by the _____.

The greater inequality of wages can be viewed as a sign that

Measuring economic inequality involves comparing those with _______.

How does being caught in a poverty tap affect an individual's future job prospects?

In circumstances dealing with poverty, the term _______ means taking income from those with higher incomes and providing income to those with lower incomes.

Why did inequality of household income increase in the United States in recent decades?

In the U.S., poverty rates are relatively low

Briefly explain how markets determine wages and where this can lead.

There seems to be little evidence that poor families experienced _ as a result of _.

Identify what the groups of government programs that assist the poor are called and provide examples of the prominent programs that are provided in the U.S..

If incomes rise for both low-income and high-income workers, but rise less for the high- income workers,

Briefly compare and contrast poverty and economic inequality.

Briefly discuss how income inequality in the U.S. has increased from the 1970s into the 2000s, as well as the two most common explanations cited by economists for this change.

Briefly compare and contrast the effects and outcomes of pushing too aggressively and pushing moderately for economic equality.

Which of the following is a safety net that could provide a decent standard of living and/or incentives to work?

A group of 10 golfing buddies have the following annual incomes: $32,000, $12,000, $56,000, $120,000, $10,000, $38,000, $70,000, $16,000, $20,000, $24,000. The share of income received by the third quintile of this income distribution is

Welcome to Economics

Choice in a World of Scarcity

Demand and Supply

Labor and Financial Markets

Elasticity

Consumer Choices

Cost and Industry Structure

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Monopoly and Antitrust Policy

Environmental Protection and Negative Externalities

Positive Externalities and Public Goods

Poverty and Economic Inequality

Information, Risk, and Insurance

Financial Markets

Public Economy

International Trade

Globalization and Protectionism

Filters

Exam 15: Issues in Labor Markets: Unions, Discrimination, Immigration

If a society decides to reduce the level of economic inequality, which of the following sets of tools can it use?

Economic inequality compares the share of the _______ In society that is received by Different groups; such as comparing the share of income received by the _______ to the share of income received by the _______.

The greater inequality of wages can be viewed as a sign that

Measuring economic inequality involves comparing those with _______.

How does being caught in a poverty tap affect an individual's future job prospects?

In circumstances dealing with poverty, the term _______ means taking income from those with higher incomes and providing income to those with lower incomes.

Why did inequality of household income increase in the United States in recent decades?

In the U.S., poverty rates are relatively low

Briefly explain how markets determine wages and where this can lead.

There seems to be little evidence that poor families experienced _______ as a result of _______.

Identify what the groups of government programs that assist the poor are called and provide examples of the prominent programs that are provided in the U.S..

If incomes rise for both low-income and high-income workers, but rise less for the high- income workers,

Briefly compare and contrast poverty and economic inequality.

Briefly discuss how income inequality in the U.S. has increased from the 1970s into the 2000s, as well as the two most common explanations cited by economists for this change.

Briefly compare and contrast the effects and outcomes of pushing too aggressively and pushing moderately for economic equality.

Which of the following is a safety net that could provide a decent standard of living and/or incentives to work?

A group of 10 golfing buddies have the following annual incomes: $32,000, $12,000, $56,000, $120,000, $10,000, $38,000, $70,000, $16,000, $20,000, $24,000. The share of income received by the third quintile of this income distribution is

Welcome to Economics

Choice in a World of Scarcity

Demand and Supply

Labor and Financial Markets

Elasticity

Consumer Choices

Cost and Industry Structure

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Monopoly and Antitrust Policy

Environmental Protection and Negative Externalities

Positive Externalities and Public Goods

Poverty and Economic Inequality

Information, Risk, and Insurance

Financial Markets

Public Economy

International Trade

Globalization and Protectionism

Filters

Economic inequality compares the share of the ___ In society that is received by Different groups; such as comparing the share of income received by the _ to the share of income received by the _____.

There seems to be little evidence that poor families experienced _ as a result of _.