Question 1

The crowding model of occupational segregation predicts that domestic output will increase if occupational segregation is ended.

Accepted Answer

A) True 
 B)False

Question 2

Statistical discrimination occurs when employers base hiring decisions on individual workers' previous employment records and statistics.

Accepted Answer

A) True 
 B)False

Question 3

The greater the degree of inequality in the distribution of income, the more bowed will be the Lorenz curve toward the

Accepted Answer

A) upper left-hand corner. 
B) upper right-hand corner. 
C) lower right-hand corner. 
D) lower left-hand corner. 
A) upper left-hand corner. 
B) upper right-hand corner. 
C) lower right-hand corner. 
D) lower left-hand corner.

Question 4

Wealth in the United States is

Accepted Answer

A) distributed in a way that reduces the degree of income inequality. 
B) more unequally distributed than is income. 
C) less unequally distributed than is income. 
D) distributed in a way that has no effect on income inequality. 
A) distributed in a way that reduces the degree of income inequality. 
B) more unequally distributed than is income. 
C) less unequally distributed than is income. 
D) distributed in a way that has no effect on income inequality.

Question 5

The Supplemental Nutrition Assistance Program (SNAP)

Accepted Answer

A) was previously known as the food-stamp program. 
B) added assistance to the food-stamp program by targeting children. 
C) was created to supplement the food consumption of low-income Social Security recipients. 
D) has been subject to widespread fraud through the illegal reproduction of paper food-stamp coupons. 
A) was previously known as the food-stamp program. 
B) added assistance to the food-stamp program by targeting children. 
C) was created to supplement the food consumption of low-income Social Security recipients. 
D) has been subject to widespread fraud through the illegal reproduction of paper food-stamp coupons.

Question 6

In 2014, the poverty line for a family of four was about

Accepted Answer

A) $15,508. 
B) $30,453. 
C) $24,230. 
D) $38,754. 
A) $15,508. 
B) $30,453. 
C) $24,230. 
D) $38,754.

Question 7

A Lorenz curve showing perfect equality in the distribution of income

Accepted Answer

A) coincides with the horizontal axis. 
B) coincides with the vertical axis. 
C) is a straight line with a 45-degree angle. 
D) is a curve bowed to the southwest. 
A) coincides with the horizontal axis. 
B) coincides with the vertical axis. 
C) is a straight line with a 45-degree angle. 
D) is a curve bowed to the southwest.

Question 8

In the U.S., the top 20 percent of households received a little more than 50 percent of total pretax income in 2014.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is not a major complaint about the official income data used in measuring poverty?

Accepted Answer

A) The income and poverty data are not frequently measured and released. 
B) The income data do not aptly measure purchasing power, especially in major metropolitan areas. 
C) The income data do not adequately measure households' consumption levels. 
D) The income data do not account for noncash transfers and benefits. 
A) The income and poverty data are not frequently measured and released. 
B) The income data do not aptly measure purchasing power, especially in major metropolitan areas. 
C) The income data do not adequately measure households' consumption levels. 
D) The income data do not account for noncash transfers and benefits.

Question 10

The percentage of the U.S.population living in poverty during the 2000 to 2014 period

Accepted Answer

A) decreased slightly. 
B) increased. 
C) remained relatively constant. 
D) decreased sharply. 
A) decreased slightly. 
B) increased. 
C) remained relatively constant. 
D) decreased sharply.

Question 11

Which one of the following is not a cash transfer program?

Accepted Answer

A) TANF 
B) Supplemental Security Income (SSI) 
C) low-rent public housing 
D) Social Security 
A) TANF 
B) Supplemental Security Income (SSI) 
C) low-rent public housing 
D) Social Security

Question 12

Which of the following would be considered part of income?

Accepted Answer

A) wages and salaries 
B) the value of a house 
C) corporate stock holdings 
D) money in a bank account 
A) wages and salaries 
B) the value of a house 
C) corporate stock holdings 
D) money in a bank account

Question 13

About a quarter of all U.S.households had personal incomes of $100,000 or more in 2014.

Accepted Answer

A) True 
 B)False

Question 14

The closer the Lorenz curve is to the diagonal, the greater is the degree of income inequality.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following would be evidence of an increase in income inequality over time in the United States?

Accepted Answer

A) an increase in the percentage of total household income received by the lowest quintile 
B) an increase in the percentage of total household income received by the highest quintile 
C) an increase in the percentage of total household income received by the four lowest quintiles 
D) a decrease in the percentage of total household income received by the highest quintile 
A) an increase in the percentage of total household income received by the lowest quintile 
B) an increase in the percentage of total household income received by the highest quintile 
C) an increase in the percentage of total household income received by the four lowest quintiles 
D) a decrease in the percentage of total household income received by the highest quintile

Question 16

Which of the following would be an example of how pure luck contributes to income inequality?

Accepted Answer

A) approval to receive unemployment benefits 
B) receipt of a government grant for housing 
C) selection as winner of a state lottery 
D) admission to a state university 
A) approval to receive unemployment benefits 
B) receipt of a government grant for housing 
C) selection as winner of a state lottery 
D) admission to a state university

Question 17

Greater income equality that is achieved through the redistribution of income is thought to

Accepted Answer

A) stimulate innovation and entrepreneurship. 
B) promote economic efficiency in the economy. 
C) increase incentives to work, save, and invest in the economy. 
D) come at the opportunity cost of reduced production and income. 
A) stimulate innovation and entrepreneurship. 
B) promote economic efficiency in the economy. 
C) increase incentives to work, save, and invest in the economy. 
D) come at the opportunity cost of reduced production and income.

Question 18

The U.S.income-maintenance program consists of two kinds of programs.They are

Accepted Answer

A) the minimum wage law and Social Security. 
B) antidiscrimination law and education and training programs. 
C) social insurance and public assistance programs. 
D) progressive income taxes and transfer payments. 
A) the minimum wage law and Social Security. 
B) antidiscrimination law and education and training programs. 
C) social insurance and public assistance programs. 
D) progressive income taxes and transfer payments.

Question 19

Suppose that white workers are getting paid $21/hour, while similarly productive African-American workers are getting paid $18/hour.A prejudiced white employer with a discrimination coefficient of $24/hour will

Accepted Answer

A) hire African Americans only if their wage rate falls to $3/hour. 
B) hire African-American workers. 
C) not hire African Americans at all, even if they offer to work for free. 
D) not hire African Americans, unless they work for free. 
A) hire African Americans only if their wage rate falls to $3/hour. 
B) hire African-American workers. 
C) not hire African Americans at all, even if they offer to work for free. 
D) not hire African Americans, unless they work for free.

Question 20

Which of the following statements about the Temporary Assistance for Needy Families (TANF) program is not true?

Accepted Answer

A) It expanded the eligibility for and scope of the nation's welfare program. 
B) It is the basic welfare program for low-income families in the U.S. 
C) In 1996, it replaced the six-decade-old Aid for Families with Dependent Children (AFD
C)  welfare program. 
D) It led to a reduction in the number of welfare recipients and an increase in the employment rate of single mothers in the years after its adoption. 
A) It expanded the eligibility for and scope of the nation's welfare program. 
B) It is the basic welfare program for low-income families in the U.S. 
C) In 1996, it replaced the six-decade-old Aid for Families with Dependent Children (AFD
C)  welfare program. 
D) It led to a reduction in the number of welfare recipients and an increase in the employment rate of single mothers in the years after its adoption.

Exam 23: Income Inequality, Poverty, and Discrimination

The crowding model of occupational segregation predicts that domestic output will increase if occupational segregation is ended.

Statistical discrimination occurs when employers base hiring decisions on individual workers' previous employment records and statistics.

The greater the degree of inequality in the distribution of income, the more bowed will be the Lorenz curve toward the

Wealth in the United States is

The Supplemental Nutrition Assistance Program (SNAP)

In 2014, the poverty line for a family of four was about

A Lorenz curve showing perfect equality in the distribution of income

In the U.S., the top 20 percent of households received a little more than 50 percent of total pretax income in 2014.

Which of the following is not a major complaint about the official income data used in measuring poverty?

The percentage of the U.S.population living in poverty during the 2000 to 2014 period

Which one of the following is not a cash transfer program?

Which of the following would be considered part of income?

About a quarter of all U.S.households had personal incomes of $100,000 or more in 2014.

The closer the Lorenz curve is to the diagonal, the greater is the degree of income inequality.

Which of the following would be evidence of an increase in income inequality over time in the United States?

Which of the following would be an example of how pure luck contributes to income inequality?

Greater income equality that is achieved through the redistribution of income is thought to

The U.S.income-maintenance program consists of two kinds of programs.They are

Suppose that white workers are getting paid $21/hour, while similarly productive African-American workers are getting paid $18/hour.A prejudiced white employer with a discrimination coefficient of $24/hour will

Which of the following statements about the Temporary Assistance for Needy Families (TANF) program is not true?

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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