Question 1

The demand curve for high-skilled workers lies to the right of the demand curve for low-skilled workers because of the costs associated with obtaining skills.

Accepted Answer

A) True 
 B)False

Question 2

-In the figure above, if the government starts to provide university education at no charge, in the long run, the wage rate of high-skilled workers will ________ and the wage rate of low-skilled workers will ________.

Accepted Answer

A)  rise; fall 
B)  fall; rise 
C)  fall; fall 
D)  rise; rise 
A)  rise; fall 
B)  fall; rise 
C)  fall; fall 
D)  rise; rise

Question 3

According to the 2007/2008 United Nations Human Development Report, the Gini ratio for Portugal is 38.5, Norway is 25.8, the United States is 40.8, and Russia is 39.9. Which of these four countries has the highest level of income equality?

Accepted Answer

A)  Portugal 
B)  United States 
C)  Norway 
D)  Russia 
A)  Portugal 
B)  United States 
C)  Norway 
D)  Russia

Question 4

In the United States

Accepted Answer

A)  there are more households with incomes below the mean income than above the mean income. 
B)  there are more households with incomes above the mean income than below the mean income. 
C)  the mode income equals the mean income. 
D)  the income distribution is bell shaped. 
A)  there are more households with incomes below the mean income than above the mean income. 
B)  there are more households with incomes above the mean income than below the mean income. 
C)  the mode income equals the mean income. 
D)  the income distribution is bell shaped.

Question 5

The income that includes a household's earnings in addition to cash transfers from the government is called

Accepted Answer

A)  market income. 
B)  real income. 
C)  money income. 
D)  cash income. 
A)  market income. 
B)  real income. 
C)  money income. 
D)  cash income.

Question 6

An income tax for which the average tax rate is constant called a

Accepted Answer

A)  regressive income tax. 
B)  proportional income tax. 
C)  marginal income tax. 
D)  progressive income tax. 
A)  regressive income tax. 
B)  proportional income tax. 
C)  marginal income tax. 
D)  progressive income tax.

Question 7

Country A has a more equal distribution of income than country B if

Accepted Answer

A)  country A's Lorenz curve is closer to the line of equality than is country B's Lorenz curve. 
B)  country B's Lorenz curve is closer to the line of equality than is country A's Lorenz curve. 
C)  country A's Lorenz curve is just as close to the line of equality as is country B's Lorenz curve. 
D)  None of the above because it is impossible to compare income inequalities across countries. 
A)  country A's Lorenz curve is closer to the line of equality than is country B's Lorenz curve. 
B)  country B's Lorenz curve is closer to the line of equality than is country A's Lorenz curve. 
C)  country A's Lorenz curve is just as close to the line of equality as is country B's Lorenz curve. 
D)  None of the above because it is impossible to compare income inequalities across countries.

Question 8

What effect does the age of a household have when estimating the degree of inequality in income among households?

Accepted Answer

Household income changes over the life c

Question 9

How does the demand for high-skilled workers compare to the demand for low-skilled workers? Why does this difference exist?

Accepted Answer

The demand for high-skilled workers exce

Question 10

Which of the following groups is the LEAST likely to be poor?

Accepted Answer

A)  college graduates 
B)  minorities 
C)  single females 
D)  people without high school degrees 
A)  college graduates 
B)  minorities 
C)  single females 
D)  people without high school degrees

Question 11

Since 1970, the distribution of income in the United States

Accepted Answer

A)  generally has become more equal. 
B)  generally has become less equal. 
C)  has become more equal than the distribution of wealth. 
D)  has shown no discernible trend. 
A)  generally has become more equal. 
B)  generally has become less equal. 
C)  has become more equal than the distribution of wealth. 
D)  has shown no discernible trend.

Question 12

-In the figure above, in which country do the highest-income 30 percent of households have the highest fraction of the nation's income?

Accepted Answer

A)  Country A 
B)  Country B 
C)  Country C 
D)  It is impossible to answer the question without more information. 
A)  Country A 
B)  Country B 
C)  Country C 
D)  It is impossible to answer the question without more information.

Question 13

If both rich and poor families pay 25 percent of their income in taxes, the tax scheme is

Accepted Answer

A)  proportional. 
B)  regressive. 
C)  negative. 
D)  progressive. 
A)  proportional. 
B)  regressive. 
C)  negative. 
D)  progressive.

Question 14

Education

Accepted Answer

A)  does not really add to one's human capital. 
B)  does not really affect one's income. 
C)  is a major factor affecting one's income. 
D)  explains all the differences in male-female incomes. 
A)  does not really add to one's human capital. 
B)  does not really affect one's income. 
C)  is a major factor affecting one's income. 
D)  explains all the differences in male-female incomes.

Question 15

Alex, Bill, and Cid live in Souland. Their annual incomes and the amounts they pay in income tax are shown in the table below.   The income tax in Souland is

Accepted Answer

A)  proportional. 
B)  disproportional. 
C)  regressive. 
D)  progressive. 
A)  proportional. 
B)  disproportional. 
C)  regressive. 
D)  progressive.

Question 16

The "mode" household income is

Accepted Answer

A)  the income that separates households into two equal groups. 
B)  the most common level of household income. 
C)  the mean household income. 
D)  the average household income. 
A)  the income that separates households into two equal groups. 
B)  the most common level of household income. 
C)  the mean household income. 
D)  the average household income.

Question 17

Consider the country of Outland. In Outland, people pay 10 percent of their income as a tax whether they earn $10,000 or $100,000 annually. Outland has ________ tax structure.

Accepted Answer

A)  a progressive 
B)  a regressive 
C)  a proportional 
D)  an excessive 
A)  a progressive 
B)  a regressive 
C)  a proportional 
D)  an excessive

Question 18

There is discrimination in the labor market on the planet of Yerk between two groups of people, the Mirks and the Morks. If the discrimination is against the Mirks, then the VMP curve for Mirks is ________ the VMP curve for Morks, and the Mirks receive ________ than the Morks.

Accepted Answer

A)  to the left of; the same wage rate, but fewer are employed 
B)  to the right of; the same wage rate, but fewer are employed 
C)  to the left of; a lower wage rate 
D)  to the right of; a lower wage rate 
A)  to the left of; the same wage rate, but fewer are employed 
B)  to the right of; the same wage rate, but fewer are employed 
C)  to the left of; a lower wage rate 
D)  to the right of; a lower wage rate

Question 19

In the United States, do the poorest 20 percent of the households receive more or less than 5 percent of total income?

Accepted Answer

The poorest 20 perce

Question 20

-The above table shows the distribution of wealth and income in Miseria. What percent of wealth is owned by the poorest twenty percent?

Accepted Answer

A)  0 percent 
B)  2 percent 
C)  3 percent 
D)  5 percent 
A)  0 percent 
B)  2 percent 
C)  3 percent 
D)  5 percent

The demand curve for high-skilled workers lies to the right of the demand curve for low-skilled workers because of the costs associated with obtaining skills.

-In the figure above, if the government starts to provide university education at no charge, in the long run, the wage rate of high-skilled workers will and the wage rate of low-skilled workers will .

According to the 2007/2008 United Nations Human Development Report, the Gini ratio for Portugal is 38.5, Norway is 25.8, the United States is 40.8, and Russia is 39.9. Which of these four countries has the highest level of income equality?

In the United States

The income that includes a household's earnings in addition to cash transfers from the government is called

An income tax for which the average tax rate is constant called a

Country A has a more equal distribution of income than country B if

What effect does the age of a household have when estimating the degree of inequality in income among households?

How does the demand for high-skilled workers compare to the demand for low-skilled workers? Why does this difference exist?

Which of the following groups is the LEAST likely to be poor?

Since 1970, the distribution of income in the United States

$-In the figure above, in which country do the highest-income 30 percent of households have the highest fraction of the nation's income?$ -In the figure above, in which country do the highest-income 30 percent of households have the highest fraction of the nation's income?

If both rich and poor families pay 25 percent of their income in taxes, the tax scheme is

Education

Alex, Bill, and Cid live in Souland. Their annual incomes and the amounts they pay in income tax are shown in the table below. The income tax in Souland is

The "mode" household income is

Consider the country of Outland. In Outland, people pay 10 percent of their income as a tax whether they earn $10,000 or $100,000 annually. Outland has ________ tax structure.

There is discrimination in the labor market on the planet of Yerk between two groups of people, the Mirks and the Morks. If the discrimination is against the Mirks, then the VMP curve for Mirks is the VMP curve for Morks, and the Mirks receive than the Morks.

In the United States, do the poorest 20 percent of the households receive more or less than 5 percent of total income?

-The above table shows the distribution of wealth and income in Miseria. What percent of wealth is owned by the poorest twenty percent?

What Is Economics

The Economic Problem

Demand and Supply

Elasticity

Efficiency and Equity

Government Actions in Markets

Global Markets in Action

Utility and Demand

Organizing Production

Output and Costs

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Public Choices, Public Goods, and Healthcare

Externalities

Markets for Factors of Production

Uncertainty and Information

Filters

Exam 19: Economic Inequality

The demand curve for high-skilled workers lies to the right of the demand curve for low-skilled workers because of the costs associated with obtaining skills.

-In the figure above, if the government starts to provide university education at no charge, in the long run, the wage rate of high-skilled workers will ________ and the wage rate of low-skilled workers will ________.

According to the 2007/2008 United Nations Human Development Report, the Gini ratio for Portugal is 38.5, Norway is 25.8, the United States is 40.8, and Russia is 39.9. Which of these four countries has the highest level of income equality?

In the United States

The income that includes a household's earnings in addition to cash transfers from the government is called

An income tax for which the average tax rate is constant called a

Country A has a more equal distribution of income than country B if

What effect does the age of a household have when estimating the degree of inequality in income among households?

How does the demand for high-skilled workers compare to the demand for low-skilled workers? Why does this difference exist?

Which of the following groups is the LEAST likely to be poor?

Since 1970, the distribution of income in the United States

-In the figure above, in which country do the highest-income 30 percent of households have the highest fraction of the nation's income?

If both rich and poor families pay 25 percent of their income in taxes, the tax scheme is

Education

Alex, Bill, and Cid live in Souland. Their annual incomes and the amounts they pay in income tax are shown in the table below. The income tax in Souland is

The "mode" household income is

Consider the country of Outland. In Outland, people pay 10 percent of their income as a tax whether they earn $10,000 or $100,000 annually. Outland has ________ tax structure.

There is discrimination in the labor market on the planet of Yerk between two groups of people, the Mirks and the Morks. If the discrimination is against the Mirks, then the VMP curve for Mirks is ________ the VMP curve for Morks, and the Mirks receive ________ than the Morks.

In the United States, do the poorest 20 percent of the households receive more or less than 5 percent of total income?

-The above table shows the distribution of wealth and income in Miseria. What percent of wealth is owned by the poorest twenty percent?

What Is Economics

The Economic Problem

Demand and Supply

Elasticity

Efficiency and Equity

Government Actions in Markets

Global Markets in Action

Utility and Demand

Organizing Production

Output and Costs

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Public Choices, Public Goods, and Healthcare

Externalities

Markets for Factors of Production

Uncertainty and Information

Filters

-In the figure above, if the government starts to provide university education at no charge, in the long run, the wage rate of high-skilled workers will and the wage rate of low-skilled workers will .

$-In the figure above, in which country do the highest-income 30 percent of households have the highest fraction of the nation's income?$ -In the figure above, in which country do the highest-income 30 percent of households have the highest fraction of the nation's income?

There is discrimination in the labor market on the planet of Yerk between two groups of people, the Mirks and the Morks. If the discrimination is against the Mirks, then the VMP curve for Mirks is the VMP curve for Morks, and the Mirks receive than the Morks.