Question 1

The 1994 book by Murray and Herrnstein, The Bell Curve, was about

Accepted Answer

A)  government debt. 
B)  the intelligence factor. 
C)  capital growth. 
D)  military readiness. 
A)  government debt. 
B)  the intelligence factor. 
C)  capital growth. 
D)  military readiness.

Question 2

TANF compels welfare recipients to go to work after a period of two years.

Accepted Answer

A) True 
 B)False

Question 3

If labor markets are competitive, discriminating employers

Accepted Answer

A)  will have to pay higher wages since the available labor supply is smaller. 
B)  will have higher costs and therefore be at a competitive disadvantage. 
C)  will be driven out of business by nondiscriminators. 
D)  All of the above are true. 
A)  will have to pay higher wages since the available labor supply is smaller. 
B)  will have higher costs and therefore be at a competitive disadvantage. 
C)  will be driven out of business by nondiscriminators. 
D)  All of the above are true.

Question 4

Affirmative action laws require employers to hire specified numbers of minorities.

Accepted Answer

A) True 
 B)False

Question 5

The difference between the earnings of construction workers who work on bridges and skyscrapers and those who work on highways is probably due to

Accepted Answer

A)  differences in education requirements. 
B)  ability (mental) differences. 
C)  a compensating differential. 
D)  luck. 
A)  differences in education requirements. 
B)  ability (mental) differences. 
C)  a compensating differential. 
D)  luck.

Question 6

Inheritance taxes tend to increase income inequality in the long run.

Accepted Answer

A) True 
 B)False

Question 7

What are the reasons for unequal distribution of income? List at least six reasons.

Accepted Answer

The text lists the following eight reaso

Question 8

The United States has less income inequality than most other developed countries.

Accepted Answer

A) True 
 B)False

Question 9

When employers discriminate, they

Accepted Answer

A)  believe they have a sound economic reason for doing so. 
B)  may pay the price in lost earnings and productivity. 
C)  subject themselves to civil action. 
D)  All of the above are correct. 
A)  believe they have a sound economic reason for doing so. 
B)  may pay the price in lost earnings and productivity. 
C)  subject themselves to civil action. 
D)  All of the above are correct.

Question 10

Is education the swiftest method to eliminate poverty.Explain.

Accepted Answer

Evidence points clearly to the conclusio

Question 11

The relative concept of poverty is based on how far behind average income a particular family gets.

Accepted Answer

A) True 
 B)False

Question 12

Generally speaking, markets do a(n) ____ job of reconciling the demands of fairness and efficiency.

Accepted Answer

A)  excellent 
B)  above-average 
C)  average 
D)  poor 
A)  excellent 
B)  above-average 
C)  average 
D)  poor

Question 13

In the United States, the incidence of poverty has declined since the 1970s.

Accepted Answer

A) True 
 B)False

Question 14

A market system tends to create inequality.

Accepted Answer

A) True 
 B)False

Question 15

If incomes were equally distributed in the United States, each fifth of the population would receive ____ percent of the income.

Accepted Answer

A)  5 
B)  10 
C)  15 
D)  20 
A)  5 
B)  10 
C)  15 
D)  20

Question 16

The basic idea behind a negative income tax is to

Accepted Answer

A)  help local government agencies deliver more services to the poor. 
B)  increase the in-kind income of the poor. 
C)  help the poor get job skills. 
D)  help the poor without destroying incentives to work. 
A)  help local government agencies deliver more services to the poor. 
B)  increase the in-kind income of the poor. 
C)  help the poor get job skills. 
D)  help the poor without destroying incentives to work.

Question 17

Under a system of free, competitive markets,

Accepted Answer

A)  a society can usually achieve efficiency only at the expense of equality. 
B)  poverty cannot exist in the long run. 
C)  employers do not practice statistical discrimination. 
D)  income is distributed equally across the population. 
A)  a society can usually achieve efficiency only at the expense of equality. 
B)  poverty cannot exist in the long run. 
C)  employers do not practice statistical discrimination. 
D)  income is distributed equally across the population.

Question 18

Since 1970, the share of income going to the richest fifth of the population in the U.S.has

Accepted Answer

A)  diminished. 
B)  grown. 
C)  remained unchanged. 
A)  diminished. 
B)  grown. 
C)  remained unchanged.

Question 19

Policies that redistribute income

Accepted Answer

A)  reduce the rewards of high-income earners. 
B)  raise the rewards of low-income earners. 
C)  reduce the incentive to earn high income. 
D)  All of the above are correct. 
A)  reduce the rewards of high-income earners. 
B)  raise the rewards of low-income earners. 
C)  reduce the incentive to earn high income. 
D)  All of the above are correct.

Question 20

The public assistance program that economists believe can promote economic equality at the least cost in economic efficiency is

Accepted Answer

A)  Aid to Families with Dependent Children (AFD
C) . 
B)  a negative income tax (NIT). 
C)  food stamps. 
D)  Medicaid. 
A)  Aid to Families with Dependent Children (AFD
C) . 
B)  a negative income tax (NIT). 
C)  food stamps. 
D)  Medicaid.

Exam 21: Poverty, Inequality, and Discrimination

The 1994 book by Murray and Herrnstein, The Bell Curve, was about

TANF compels welfare recipients to go to work after a period of two years.

If labor markets are competitive, discriminating employers

Affirmative action laws require employers to hire specified numbers of minorities.

The difference between the earnings of construction workers who work on bridges and skyscrapers and those who work on highways is probably due to

Inheritance taxes tend to increase income inequality in the long run.

What are the reasons for unequal distribution of income? List at least six reasons.

The United States has less income inequality than most other developed countries.

When employers discriminate, they

Is education the swiftest method to eliminate poverty.Explain.

The relative concept of poverty is based on how far behind average income a particular family gets.

Generally speaking, markets do a(n) ____ job of reconciling the demands of fairness and efficiency.

In the United States, the incidence of poverty has declined since the 1970s.

A market system tends to create inequality.

If incomes were equally distributed in the United States, each fifth of the population would receive ____ percent of the income.

The basic idea behind a negative income tax is to

Under a system of free, competitive markets,

Since 1970, the share of income going to the richest fifth of the population in the U.S.has

Policies that redistribute income

The public assistance program that economists believe can promote economic equality at the least cost in economic efficiency is

What Is Economics?

The Economy: Myth and Reality

The Fundamental Economic Problem: Scarcity and Choice

Supply and Demand: An Initial Look

Consumer Choice: Individual and Market Demand

Demand and Elasticity

Production, Inputs, and Cost: Building Blocks for Supply Analysis

Output, Price, and Profit: The Importance of Marginal Analysis

Securities: Business Finance, and the Economy: The Tail that Wags the Dog?

The Firm and the Industry under Perfect Competition

Monopoly

Between Competition and Monopoly

Limiting Market Power: Regulation and Antitrust

The Case for Free Markets I: The Price System

The Shortcomings of Free Markets

The Market's Prime Achievement: Innovation and Growth

Externalities, the Environment, and Natural Resources

Taxation and Resource Allocation

Pricing the Factors of Production

Labor and Entrepreneurship: The Human Inputs

An Introduction to Macroeconomics

The Goals of Macroeconomic Policy

Economic Growth: Theory and Policy

Aggregate Demand and the Powerful Consumer

Demand-Side Equilibrium: Unemployment or Inflation?

Bringing in the Supply Side: Unemployment and Inflation?

Managing Aggregate Demand: Fiscal Policy

Money and the Banking System

Monetary Policy: Conventional and Unconventional

The Financial Crisis and the Great Recession

The Debate over Monetary and Fiscal Policy

Budget Deficits in the Short and Long Run

The Trade-Off between Inflation and Unemployment

International Trade and Comparative Advantage

The International Monetary System: Order or Disorder?

Exchange Rates and the Macroeconomy

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