Question 1

The necessity to maintain incentives to work and incentives to produce output would be a point made by an individual making the case for

Accepted Answer

A) income equality. 
B) income inequality. 
C) maximizing total utility. 
D) maximizing marginal utility. 
A) income equality. 
B) income inequality. 
C) maximizing total utility. 
D) maximizing marginal utility. B

Question 2

Which of the following would be a significant cause of income inequality in the United States?

Accepted Answer

A) housing 
B) discrimination 
C) in-kind transfers 
D) Social Security 
A) housing 
B) discrimination 
C) in-kind transfers 
D) Social Security B

Question 3

Which of the following is a noncash transfer?

Accepted Answer

A) a payment to a divorced mother under TANF 
B) SNAP (food stamps) 
C) a Social Security payment to a retiree 
D) unemployment compensation benefits 
A) a payment to a divorced mother under TANF 
B) SNAP (food stamps) 
C) a Social Security payment to a retiree 
D) unemployment compensation benefits B

Question 4

Perfect income equality would yield a Gini ratio of

Accepted Answer

A) 2. 
B) 1. 
C) 0. 
D)  0.5 
A) 2. 
B) 1. 
C) 0. 
D)  0.5

Question 5

(Consider This) The main focus of the vignette "Slicing the Pizza" is the

Accepted Answer

A) equality-efficiency trade-off. 
B) principal-agent problem. 
C) impact of market power on economic efficiency. 
D) the highly unequal distribution of U.S.wealth. 
A) equality-efficiency trade-off. 
B) principal-agent problem. 
C) impact of market power on economic efficiency. 
D) the highly unequal distribution of U.S.wealth.

Question 6

Poverty is a condition where a person or family does not have the means to

Accepted Answer

A) satisfy all wants. 
B) save enough for the future. 
C) earn a stable income. 
D) meet basic needs. 
A) satisfy all wants. 
B) save enough for the future. 
C) earn a stable income. 
D) meet basic needs.

Question 7

A kingdom where only the king earns all income would have a Gini ratio of

Accepted Answer

A) 100. 
B) 0. 
C) 1. 
D) 2. 
A) 100. 
B) 0. 
C) 1. 
D) 2.

Question 8

Statistical discrimination

Accepted Answer

A) can persist in the long run if differences in average characteristics among groups continue. 
B) will tend to diminish in the long run because nondiscriminating firms will drive out discriminating firms. 
C) requires that employers have discrimination coefficients greater than zero. 
D) is also known as occupational segregation. 
A) can persist in the long run if differences in average characteristics among groups continue. 
B) will tend to diminish in the long run because nondiscriminating firms will drive out discriminating firms. 
C) requires that employers have discrimination coefficients greater than zero. 
D) is also known as occupational segregation.

Question 9

Assume that there is a supply and demand market for nonpreferred workers.If prejudice against these workers among employers decreases, then there will be a(n)

Accepted Answer

A) increased supply of these workers, a rise in their wage rate, and a decrease in their employment. 
B) increased demand for these workers, a rise in their wage rate, and an increase in their employment. 
C) decreased supply of these workers, a fall in their wage rate, and a decrease in their employment. 
D) decreased demand for these workers, a fall in their wage rate, and a decrease in their employment. 
A) increased supply of these workers, a rise in their wage rate, and a decrease in their employment. 
B) increased demand for these workers, a rise in their wage rate, and an increase in their employment. 
C) decreased supply of these workers, a fall in their wage rate, and a decrease in their employment. 
D) decreased demand for these workers, a fall in their wage rate, and a decrease in their employment.

Question 10

Income mobility

Accepted Answer

A) contributes to greater wealth inequality in the United States. 
B) is less in the United States than in most developing nations. 
C) is the movement of individuals and households from one income quintile to another over time. 
D) makes lifetime income inequality among income receivers in the United States greater than income inequality in any single year. 
A) contributes to greater wealth inequality in the United States. 
B) is less in the United States than in most developing nations. 
C) is the movement of individuals and households from one income quintile to another over time. 
D) makes lifetime income inequality among income receivers in the United States greater than income inequality in any single year.

Question 11

From 1995 to 2007 in the U.S., the median and average family wealth adjusted for inflation both

Accepted Answer

A) increased rapidly but fell sharply from 2007 to 2013. 
B) stayed roughly the same, then rose from 2007 to 2013. 
C) stayed at about the same level, then fell sharply from 2007 to 2013. 
D) increased slowly, then accelerated from 2007 to 2013. 
A) increased rapidly but fell sharply from 2007 to 2013. 
B) stayed roughly the same, then rose from 2007 to 2013. 
C) stayed at about the same level, then fell sharply from 2007 to 2013. 
D) increased slowly, then accelerated from 2007 to 2013.

Question 12

The Lorenz curve portrays

Accepted Answer

A) the functional distribution of income. 
B) the ratio of labor to capitalist income. 
C) the personal distribution of income. 
D) income equality. 
A) the functional distribution of income. 
B) the ratio of labor to capitalist income. 
C) the personal distribution of income. 
D) income equality.

Question 13

The Temporary Assistance for Needy Families (TANF) program that replaced the old Aid for Families with Dependent Children welfare program succeeded in reducing the number of welfare recipients and increasing the employment rate among single mothers.

Accepted Answer

A) True 
 B)False

Question 14

The highest quintile of households in the income distribution (as of 2014)

Accepted Answer

A) receives about 51 percent of the total income. 
B) comprises 10 percent of all households. 
C) comprises 5 percent of all households. 
D) receives about 43 percent of the total income. 
A) receives about 51 percent of the total income. 
B) comprises 10 percent of all households. 
C) comprises 5 percent of all households. 
D) receives about 43 percent of the total income.

Question 15

As the area between the Lorenz curve and diagonal gets larger, the Gini ratio

Accepted Answer

A) rises to reflect greater equality. 
B) rises to reflect greater inequality. 
C) falls to reflect greater inequality. 
D) falls to reflect greater equality. 
A) rises to reflect greater equality. 
B) rises to reflect greater inequality. 
C) falls to reflect greater inequality. 
D) falls to reflect greater equality.

Question 16

In statistical discrimination,

Accepted Answer

A) the average characteristics of the group are applied to individual members. 
B) the characteristics of individual members of a group are applied to describe the group as a whole. 
C) hiring characteristics for workers are based on set government requirements 
D) workers are given preferential treatment if they help fulfill a quota for a particular type of characteristic. 
A) the average characteristics of the group are applied to individual members. 
B) the characteristics of individual members of a group are applied to describe the group as a whole. 
C) hiring characteristics for workers are based on set government requirements 
D) workers are given preferential treatment if they help fulfill a quota for a particular type of characteristic.

Question 17

A particular woman is denied on-the-job training because women on average are more likely to drop out of the workforce than men.This illustrates

Accepted Answer

A) occupational segregation. 
B) the crowding model. 
C) the taste-for-discrimination model. 
D) statistical discrimination. 
A) occupational segregation. 
B) the crowding model. 
C) the taste-for-discrimination model. 
D) statistical discrimination.

Question 18

The crowding model of occupational segregation shows how white males earn higher incomes at the expense of women and minorities who are restricted to a limited number of occupations.

Accepted Answer

A) True 
 B)False

Question 19

Currently over 90 percent of all workers in the United States are covered by Social Security.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following employers is the most prejudiced? Employer

Accepted Answer

A) A, whose d is $0. 
B) B, whose d is $2. 
C) C, whose d is $4. 
D) D, whose d is $6. 
A) A, whose d is $0. 
B) B, whose d is $2. 
C) C, whose d is $4. 
D) D, whose d is $6.

Exam 23: Income Inequality, Poverty, and Discrimination

The necessity to maintain incentives to work and incentives to produce output would be a point made by an individual making the case for

Which of the following would be a significant cause of income inequality in the United States?

Which of the following is a noncash transfer?

Perfect income equality would yield a Gini ratio of

(Consider This) The main focus of the vignette "Slicing the Pizza" is the

Poverty is a condition where a person or family does not have the means to

A kingdom where only the king earns all income would have a Gini ratio of

Statistical discrimination

Assume that there is a supply and demand market for nonpreferred workers.If prejudice against these workers among employers decreases, then there will be a(n)

Income mobility

From 1995 to 2007 in the U.S., the median and average family wealth adjusted for inflation both

The Lorenz curve portrays

The Temporary Assistance for Needy Families (TANF) program that replaced the old Aid for Families with Dependent Children welfare program succeeded in reducing the number of welfare recipients and increasing the employment rate among single mothers.

The highest quintile of households in the income distribution (as of 2014)

As the area between the Lorenz curve and diagonal gets larger, the Gini ratio

In statistical discrimination,

A particular woman is denied on-the-job training because women on average are more likely to drop out of the workforce than men.This illustrates

The crowding model of occupational segregation shows how white males earn higher incomes at the expense of women and minorities who are restricted to a limited number of occupations.

Currently over 90 percent of all workers in the United States are covered by Social Security.

Which of the following employers is the most prejudiced? Employer

Limits, Alternatives, and Choices

The Market System and the Circular Flow

Demand, Supply, and Market Equilibrium

Market Failures: Public Goods and Externalities

Governments Role and Government Failure

Elasticity

Utility Maximization

Behavioral Economics

Businesses and the Costs of Production

Pure Competition in the Short Run

Pure Competition in the Long Run

Pure Monopoly

Monopolistic Competition

Oligopoly and Strategic Behavior

Technology, Rd, and Efficiency

The Demand for Resources

Wage Determination

Rent, Interest, and Profit

Natural Resource and Energy Economics

Public Finance: Expenditures and Taxes

Antitrust Policy and Regulation

Agriculture: Economics and Policy

Health Care

Immigration

An Introduction to Macroeconomics

Measuring Domestic Output and National Income

Economic Growth

Business Cycles, Unemployment, and Inflation

Basic Macroeconomic Relationships

The Aggregate Expenditures Model

Aggregate Demand and Aggregate Supply

Fiscal Policy, Deficits, and Debt

Money, Banking, and Financial Institutions

Money Creation

Interest Rates and Monetary Policy

Financial Economics

Extending the Analysis of Aggregate Supply

Current Issues in Macro Theory and Policy

International Trade

The Balance of Payments, Exchange Rates, and Trade Deficits

The Economics of Developing Countries

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