Question 1

Discrimination

Accepted Answer

A) affects the distribution of domestic output and income but not its total size. 
B) is shown as some point outside of an economy's production possibilities curve. 
C) places the economy at some point inside of its production possibilities curve. 
D) affects the total size of domestic output and income but not its distribution. 
A) affects the distribution of domestic output and income but not its total size. 
B) is shown as some point outside of an economy's production possibilities curve. 
C) places the economy at some point inside of its production possibilities curve. 
D) affects the total size of domestic output and income but not its distribution.

Question 2

Which of the following is an example of a noncash transfer that is typically not included in the income-distribution data?

Accepted Answer

A) Social Security benefits 
B) welfare assistance 
C) unemployment compensation 
D) Medicare 
A) Social Security benefits 
B) welfare assistance 
C) unemployment compensation 
D) Medicare

Question 3

The average household income in the United States in 2014 was close to

Accepted Answer

A) $35,000. 
B) $50,000. 
C) $70,000. 
D) $100,000. 
A) $35,000. 
B) $50,000. 
C) $70,000. 
D) $100,000.

Question 4

The former food-stamp program is now the Supplemental Nutrition Assistance Program (SNAP) and eligible households now receive

Accepted Answer

A) vouchers for food purchases. 
B) specialized debit cards that get monthly deposits of electronic money from the government. 
C) credit cards, and they forward the monthly bills to the government. 
D) cash payments. 
A) vouchers for food purchases. 
B) specialized debit cards that get monthly deposits of electronic money from the government. 
C) credit cards, and they forward the monthly bills to the government. 
D) cash payments.

Question 5

The crowding model of occupational discrimination suggests that occupational segregation results in

Accepted Answer

A) a lower domestic output than would otherwise be the case. 
B) higher levels of total employment than would otherwise be the case. 
C) higher interest rates in the private sector than would otherwise be the case. 
D) a higher rate of inflation than would otherwise be the case. 
A) a lower domestic output than would otherwise be the case. 
B) higher levels of total employment than would otherwise be the case. 
C) higher interest rates in the private sector than would otherwise be the case. 
D) a higher rate of inflation than would otherwise be the case.

Question 6

Entitlement programs include

Accepted Answer

A) welfare programs only. 
B) social insurance programs only. 
C) both public assistance programs and social insurance programs. 
D) welfare programs and public assistance programs. 
A) welfare programs only. 
B) social insurance programs only. 
C) both public assistance programs and social insurance programs. 
D) welfare programs and public assistance programs.

Question 7

(Last Word) Median wealth in the United States in 2013

Accepted Answer

A) was about the same as in 1995. 
B) had grown by about 8 percent since 1995. 
C) was about $76,000. 
D) was about $84,000. 
A) was about the same as in 1995. 
B) had grown by about 8 percent since 1995. 
C) was about $76,000. 
D) was about $84,000.

Question 8

Since its inception in 1996, the Temporary Assistance for Needy Families (TANF) program has

Accepted Answer

A) increased, rather than reduced, the number of people on welfare. 
B) reduced the number of people on welfare by more than one-half. 
C) aided the poor by automatically increasing welfare payments when inflation occurs. 
D) greatly increased the unemployment rate. 
A) increased, rather than reduced, the number of people on welfare. 
B) reduced the number of people on welfare by more than one-half. 
C) aided the poor by automatically increasing welfare payments when inflation occurs. 
D) greatly increased the unemployment rate.

Question 9

The poverty rate in the United States was

Accepted Answer

A) 12 percent in 2014. 
B) higher in 2014 than in 1960. 
C) about the same in 2014 as in 1993. 
D) nearly 20 percent in 2014. 
A) 12 percent in 2014. 
B) higher in 2014 than in 1960. 
C) about the same in 2014 as in 1993. 
D) nearly 20 percent in 2014.

Question 10

The Lorenz curve is a graph that relates income to household spending.

Accepted Answer

A) True 
 B)False

Question 11

Standard census data on the distribution of income

Accepted Answer

A) take all taxes and transfer payments into account. 
B) are before taxes in that they do not account for personal income and payroll taxes. 
C) include noncash transfers. 
D) exclude cash transfers. 
A) take all taxes and transfer payments into account. 
B) are before taxes in that they do not account for personal income and payroll taxes. 
C) include noncash transfers. 
D) exclude cash transfers.

Question 12

An employer (biased against African Americans) whose discrimination coefficient is $5 will hire only whites if the actual African-American-white wage gap is
$7.

Accepted Answer

A) True 
 B)False

Question 13

In 2014, the portion of the U.S.population that lived in poverty was

Accepted Answer

A) about 1 percent. 
B) about 5 percent. 
C) about 15 percent. 
D) about 25 percent. 
A) about 1 percent. 
B) about 5 percent. 
C) about 15 percent. 
D) about 25 percent.

Question 14

Income mobility

Accepted Answer

A) makes lifetime income inequality among income receivers in the United States less than income inequality in any single year. 
B) is less in the United States than in most developing nations. 
C) refers to the movement of wage earners from one job to another. 
D) reduces the total percentage of households in the lowest quintile of the income distribution over time. 
A) makes lifetime income inequality among income receivers in the United States less than income inequality in any single year. 
B) is less in the United States than in most developing nations. 
C) refers to the movement of wage earners from one job to another. 
D) reduces the total percentage of households in the lowest quintile of the income distribution over time.

Question 15

Which of the following contributes most to the reduction in income inequality?

Accepted Answer

A) taxes 
B) wealth 
C) transfer payments 
D) earned-income tax credits 
A) taxes 
B) wealth 
C) transfer payments 
D) earned-income tax credits

Question 16

Which of the following Gini ratios indicates the lowest degree of income inequality?

Accepted Answer

A) 0.71 
B) 0.55 
C) 0.31 
D) 0.45 
A) 0.71 
B) 0.55 
C) 0.31 
D) 0.45

Question 17

Which of the following groups has the lowest poverty rate?

Accepted Answer

A) married-couple families 
B) whites 
C) foreign-born (not citizens) 
D) Asians 
A) married-couple families 
B) whites 
C) foreign-born (not citizens) 
D) Asians

Question 18

(Consider This) The main problem with welfare cliffs is that they

Accepted Answer

A) discourage welfare recipients from moving into higher paying jobs and ultimately becoming self-sufficient. 
B) cause dramatic increases in government spending at times when tax revenues are falling. 
C) occur randomly, further destabilizing the lives of recipients who are suddenly cut off. 
D) significantly increase the number of people receiving welfare. 
A) discourage welfare recipients from moving into higher paying jobs and ultimately becoming self-sufficient. 
B) cause dramatic increases in government spending at times when tax revenues are falling. 
C) occur randomly, further destabilizing the lives of recipients who are suddenly cut off. 
D) significantly increase the number of people receiving welfare.

Question 19

The standard data on income distribution do not include the value of noncash transfers as income.

Accepted Answer

A) True 
 B)False

Question 20

An implication of the taste-for-discrimination model is that

Accepted Answer

A) discrimination can lower a firm's production costs. 
B) discrimination will move a firm along its declining average total cost curve. 
C) other things equal, nondiscriminating firms will have lower production costs than discriminating firms. 
D) other things equal, discriminating firms will have lower production costs than nondiscriminating firms. 
A) discrimination can lower a firm's production costs. 
B) discrimination will move a firm along its declining average total cost curve. 
C) other things equal, nondiscriminating firms will have lower production costs than discriminating firms. 
D) other things equal, discriminating firms will have lower production costs than nondiscriminating firms.

Exam 23: Income Inequality, Poverty, and Discrimination

Discrimination

Which of the following is an example of a noncash transfer that is typically not included in the income-distribution data?

The average household income in the United States in 2014 was close to

The former food-stamp program is now the Supplemental Nutrition Assistance Program (SNAP) and eligible households now receive

The crowding model of occupational discrimination suggests that occupational segregation results in

Entitlement programs include

(Last Word) Median wealth in the United States in 2013

Since its inception in 1996, the Temporary Assistance for Needy Families (TANF) program has

The poverty rate in the United States was

The Lorenz curve is a graph that relates income to household spending.

Standard census data on the distribution of income

An employer (biased against African Americans) whose discrimination coefficient is $5 will hire only whites if the actual African-American-white wage gap is $7.

In 2014, the portion of the U.S.population that lived in poverty was

Income mobility

Which of the following contributes most to the reduction in income inequality?

Which of the following Gini ratios indicates the lowest degree of income inequality?

Which of the following groups has the lowest poverty rate?

(Consider This) The main problem with welfare cliffs is that they

The standard data on income distribution do not include the value of noncash transfers as income.

An implication of the taste-for-discrimination model is that

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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