Question 1

The highest-income fifth of the U.S.population ordinarily earns more than 40 percent of all income.

Accepted Answer

A) True 
 B)False

Question 2

Compared to a negative income tax, the federal personal income tax is thought of as a way to promote greater equality.Why?

Accepted Answer

The NIT is largely thought of as an anti

Question 3

Compared to a nonpoor individual, a poor individual is more likely to be

Accepted Answer

A)  female. 
B)  black. 
C)  a child. 
D)  All of the above are correct. 
A)  female. 
B)  black. 
C)  a child. 
D)  All of the above are correct.

Question 4

In the negative income tax framework, a break-even point of $16,000 and a tax rate of 25 percent imply a guarantee of which of the following figures?

Accepted Answer

A)  $4,000 
B)  $8,000 
C)  $12,000 
D)  $16,000 
A)  $4,000 
B)  $8,000 
C)  $12,000 
D)  $16,000

Question 5

Competitive forces will reduce the effects of employers' discrimination over time.

Accepted Answer

A) True 
 B)False

Question 6

What are the strengths and weaknesses of the negative income tax (NIT) as an alternative to traditional welfare programs?

Accepted Answer

The tax would increase the incentive to

Question 7

An example of a policy to combat poverty is

Accepted Answer

A)  TANF. 
B)  food stamps. 
C)  Social Security. 
D)  All of the above are correct. 
A)  TANF. 
B)  food stamps. 
C)  Social Security. 
D)  All of the above are correct.

Question 8

Define discrimination.Why does discrimination occur and what evidence exists that it does occur?

Accepted Answer

Economic discrimination occurs when equi

Question 9

By 2009, the poverty line for a typical family of four stood at about $27,500.

Accepted Answer

A) True 
 B)False

Question 10

One benefit of a negative income tax is that it would increase work incentives.

Accepted Answer

A) True 
 B)False

Question 11

Compensating wage differentials explain some income differences.

Accepted Answer

A) True 
 B)False

Question 12

AFDC was an example of an efficient redistribution program.

Accepted Answer

A) True 
 B)False

Question 13

The national poverty rate in the United States reached a low in the

Accepted Answer

A)  early 1960s. 
B)  early 1970s. 
C)  late 1970s. 
D)  early 1980s. 
A)  early 1960s. 
B)  early 1970s. 
C)  late 1970s. 
D)  early 1980s.

Question 14

Discuss the criticisms leveled against the Aid to Families with Dependent Children program.

Accepted Answer

Aid to Families with Dependent Children

Question 15

The existence of differences between the average earnings of men and women

Accepted Answer

A)  proves the existence of economic discrimination. 
B)  may be partially due to factors other than economic discrimination. 
C)  proves that men on average invest more in their human capital than women do. 
D)  indicates that men are on average smarter than women. 
A)  proves the existence of economic discrimination. 
B)  may be partially due to factors other than economic discrimination. 
C)  proves that men on average invest more in their human capital than women do. 
D)  indicates that men are on average smarter than women.

Question 16

Economic discrimination occurs when two equal factors of production are paid differently.

Accepted Answer

A) True 
 B)False

Question 17

Actual experiments show that negative income taxes destroy work incentives.

Accepted Answer

A) True 
 B)False

Question 18

Because of the book, The Other America, Michael Harrington was important in beginning the

Accepted Answer

A)  Peace Corps. 
B)  "War on Poverty." 
C)  regulation of industry. 
D)  Environmental Protection Agency. 
A)  Peace Corps. 
B)  "War on Poverty." 
C)  regulation of industry. 
D)  Environmental Protection Agency.

Question 19

Critics of affirmative action programs argue that they

Accepted Answer

A)  promote statistical discrimination. 
B)  impair economic efficiency by preventing firms from freely choosing the most productive employee for a particular job. 
C)  are not as efficient as quota systems at hiring women and minorities. 
D)  All of the above are correct. 
A)  promote statistical discrimination. 
B)  impair economic efficiency by preventing firms from freely choosing the most productive employee for a particular job. 
C)  are not as efficient as quota systems at hiring women and minorities. 
D)  All of the above are correct.

Question 20

Because of the owner's prejudice, a firm chooses to discriminate against hiring Oriental workers.Compared to an otherwise identical nondiscriminating firm hiring in the same competitive market, the discriminating firm will have

Accepted Answer

A)  higher costs. 
B)  lower profits. 
C)  a lower quantity of labor supplied at every wage. 
D)  All of the above are correct. 
A)  higher costs. 
B)  lower profits. 
C)  a lower quantity of labor supplied at every wage. 
D)  All of the above are correct.

Exam 21: Poverty, Inequality, and Discrimination

The highest-income fifth of the U.S.population ordinarily earns more than 40 percent of all income.

Compared to a negative income tax, the federal personal income tax is thought of as a way to promote greater equality.Why?

Compared to a nonpoor individual, a poor individual is more likely to be

In the negative income tax framework, a break-even point of $16,000 and a tax rate of 25 percent imply a guarantee of which of the following figures?

Competitive forces will reduce the effects of employers' discrimination over time.

What are the strengths and weaknesses of the negative income tax (NIT) as an alternative to traditional welfare programs?

An example of a policy to combat poverty is

Define discrimination.Why does discrimination occur and what evidence exists that it does occur?

By 2009, the poverty line for a typical family of four stood at about $27,500.

One benefit of a negative income tax is that it would increase work incentives.

Compensating wage differentials explain some income differences.

AFDC was an example of an efficient redistribution program.

The national poverty rate in the United States reached a low in the

Discuss the criticisms leveled against the Aid to Families with Dependent Children program.

The existence of differences between the average earnings of men and women

Economic discrimination occurs when two equal factors of production are paid differently.

Actual experiments show that negative income taxes destroy work incentives.

Because of the book, The Other America, Michael Harrington was important in beginning the

Critics of affirmative action programs argue that they

Because of the owner's prejudice, a firm chooses to discriminate against hiring Oriental workers.Compared to an otherwise identical nondiscriminating firm hiring in the same competitive market, the discriminating firm will have

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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