Question 1

-In the figure above, the second poorest 20 percent of households receive ________ of total income.

Accepted Answer

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

Question 2

Which of the following is NOT a potential reason for wage differences by race or sex?

Accepted Answer

A)  discrimination 
B)  differences in human capital 
C)  differences in the degree of specialization 
D)  All of the above are potential reasons for wage differences by race or sex. 
A)  discrimination 
B)  differences in human capital 
C)  differences in the degree of specialization 
D)  All of the above are potential reasons for wage differences by race or sex.

Question 3

What are the three ways that the government redistributes income in the United States? Briefly discuss each.

Accepted Answer

The government redistributes income usin

Question 4

-In the above table, which plan is a flat-rate tax?

Accepted Answer

A)  only plan A 
B)  only plan B 
C)  only plan C 
D)  both plan A and plan C 
A)  only plan A 
B)  only plan B 
C)  only plan C 
D)  both plan A and plan C

Question 5

Lee earns more than does Pat. Which of the following can explain why?

Accepted Answer

A)  Pat is discriminated against. 
B)  Lee has more human capital. 
C)  Lee has a greater degree of specialization in earning an income. 
D)  All of the above could be a factor leading to the wage difference. 
A)  Pat is discriminated against. 
B)  Lee has more human capital. 
C)  Lee has a greater degree of specialization in earning an income. 
D)  All of the above could be a factor leading to the wage difference.

Question 6

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 lowest 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 7

Which of the following is NOT an example of the opportunity cost of investing in human capital?

Accepted Answer

A)  lost wages while in school 
B)  lost wages while in on-the-job training 
C)  tuition payments 
D)  apartment rent while working and going to school part-time 
A)  lost wages while in school 
B)  lost wages while in on-the-job training 
C)  tuition payments 
D)  apartment rent while working and going to school part-time

Question 8

-In the figure above, the poorest 40 percent of all households receive what share of income?

Accepted Answer

A)  10 percent 
B)  20 percent 
C)  40 percent 
D)  60 percent 
A)  10 percent 
B)  20 percent 
C)  40 percent 
D)  60 percent

Question 9

-The table shows the distribution of human and non-human capital for two people, Sam and Janet.
a) Looking just at tangible assets (non-human capital), by how many times does Janet's wealth exceed Sam's?
b) Assume that both human and non-human capital earn a 10 percent annual interest rate. Calculate Sam's and Janet's total income.
c) By how many times does Janet's total income exceed Sam's?
d) Which comparison results in a more equal distribution?
e) Which comparison gives a better indication of each person's economic condition?

Accepted Answer

a) Janet has 20 times as much wealth as

Question 10

The wage rate for high-skilled labor is higher than that for low-skilled labor because

Accepted Answer

A)  both the demand for and the supply of high-skilled labor is greater than that for low-skilled labor. 
B)  the demand for high-skilled labor is greater than the demand for low-skilled labor and the supply of high-skilled labor is less than the supply of low-skilled labor. 
C)  the demand for high-skilled labor is less than the demand for low-skilled labor and the supply of high-skilled labor is greater than the supply of low-skilled labor. 
D)  both the demand for and the supply of high-skilled labor is less than that for low-skilled labor. 
A)  both the demand for and the supply of high-skilled labor is greater than that for low-skilled labor. 
B)  the demand for high-skilled labor is greater than the demand for low-skilled labor and the supply of high-skilled labor is less than the supply of low-skilled labor. 
C)  the demand for high-skilled labor is less than the demand for low-skilled labor and the supply of high-skilled labor is greater than the supply of low-skilled labor. 
D)  both the demand for and the supply of high-skilled labor is less than that for low-skilled labor.

Question 11

In the U.S. in 2012 the poverty level for a family of four was about

Accepted Answer

A)  $23,000. 
B)  $34,000. 
C)  $10,000. 
D)  $15,000. 
A)  $23,000. 
B)  $34,000. 
C)  $10,000. 
D)  $15,000.

Question 12

A Lorenz curve can be used to illustrate

Accepted Answer

A)  the supply of labor. 
B)  the substitution effect. 
C)  the income effect. 
D)  the distribution of income. 
A)  the supply of labor. 
B)  the substitution effect. 
C)  the income effect. 
D)  the distribution of income.

Question 13

The table shows the distributions of market income and money income in the United States in 2007.
  
-According to the table above, income is redistributed from the ________ of households to the ________ of households.

Accepted Answer

A)  richest 20%; rest 
B)  richest 20%; poorest 20% 
C)  richest 40%; rest 
D)  poorest 40%; richest 20% 
A)  richest 20%; rest 
B)  richest 20%; poorest 20% 
C)  richest 40%; rest 
D)  poorest 40%; richest 20%

Question 14

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

Accepted Answer

A)  0 percent 
B)  2 percent 
C)  5 percent 
D)  83 percent 
A)  0 percent 
B)  2 percent 
C)  5 percent 
D)  83 percent

Question 15

-In the figure above, the difference in wage rate between low-skilled and high-skilled labor is

Accepted Answer

A)  $16. 
B)  $8. 
C)  $20. 
D)  $28. 
A)  $16. 
B)  $8. 
C)  $20. 
D)  $28.

Question 16

The measured distribution of ________ is a more accurate indicator of the degree of economic inequality than the measured distribution of ________ because ________ data does NOT include ________.

Accepted Answer

A)  income; wealth; wealth; human capital 
B)  wealth; income; income; holdings of real estate 
C)  wealth; income; income; human capital 
D)  income; wealth; wealth; employment information 
A)  income; wealth; wealth; human capital 
B)  wealth; income; income; holdings of real estate 
C)  wealth; income; income; human capital 
D)  income; wealth; wealth; employment information

Question 17

When China embarked on market changes towards urbanization and manufacturing in 1978, urban disposable incomes were 2.6 times greater than rural net income. By 2008 they were 3.3 times bigger. These market changes have led to

Accepted Answer

A)  increased income inequality between rural and urban populations. 
B)  a decreased Gini ratio. 
C)  the Lorenz curve for income to move closer to the line of equality. 
D)  a movement towards a bell-shaped distribution of income. 
A)  increased income inequality between rural and urban populations. 
B)  a decreased Gini ratio. 
C)  the Lorenz curve for income to move closer to the line of equality. 
D)  a movement towards a bell-shaped distribution of income.

Question 18

-In the figure above, the middle fifth of all households receive what share of income?

Accepted Answer

A)  10 percent 
B)  30 percent 
C)  20 percent 
D)  5 percent 
A)  10 percent 
B)  30 percent 
C)  20 percent 
D)  5 percent

Question 19

The lifetime income distribution of income is a ________ accurate indicator of the degree of economic inequality than the distribution of ________.

Accepted Answer

A)  less; of annual income 
B)  more; of annual income 
C)  less; of wealth 
D)  less; annual Lorenz curves 
A)  less; of annual income 
B)  more; of annual income 
C)  less; of wealth 
D)  less; annual Lorenz curves

Question 20

In the U.S. in 2016 the percentage of the Americans living below the poverty line was about

Accepted Answer

A)  12.5 percent. 
B)  20 percent. 
C)  5 percent. 
D)  27 percent. 
A)  12.5 percent. 
B)  20 percent. 
C)  5 percent. 
D)  27 percent.

-In the figure above, the second poorest 20 percent of households receive ________ of total income.

Which of the following is NOT a potential reason for wage differences by race or sex?

What are the three ways that the government redistributes income in the United States? Briefly discuss each.

-In the above table, which plan is a flat-rate tax?

Lee earns more than does Pat. Which of the following can explain why?

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 lowest level of income equality?

Which of the following is NOT an example of the opportunity cost of investing in human capital?

-In the figure above, the poorest 40 percent of all households receive what share of income?

The wage rate for high-skilled labor is higher than that for low-skilled labor because

In the U.S. in 2012 the poverty level for a family of four was about

A Lorenz curve can be used to illustrate

The table shows the distributions of market income and money income in the United States in 2007. -According to the table above, income is redistributed from the of households to the of households.

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

-In the figure above, the difference in wage rate between low-skilled and high-skilled labor is

The measured distribution of is a more accurate indicator of the degree of economic inequality than the measured distribution of because data does NOT include .

When China embarked on market changes towards urbanization and manufacturing in 1978, urban disposable incomes were 2.6 times greater than rural net income. By 2008 they were 3.3 times bigger. These market changes have led to

-In the figure above, the middle fifth of all households receive what share of income?

The lifetime income distribution of income is a accurate indicator of the degree of economic inequality than the distribution of .

In the U.S. in 2016 the percentage of the Americans living below the poverty line was about

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

-In the figure above, the second poorest 20 percent of households receive ________ of total income.

Which of the following is NOT a potential reason for wage differences by race or sex?

What are the three ways that the government redistributes income in the United States? Briefly discuss each.

-In the above table, which plan is a flat-rate tax?

Lee earns more than does Pat. Which of the following can explain why?

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 lowest level of income equality?

Which of the following is NOT an example of the opportunity cost of investing in human capital?

-In the figure above, the poorest 40 percent of all households receive what share of income?

The wage rate for high-skilled labor is higher than that for low-skilled labor because

In the U.S. in 2012 the poverty level for a family of four was about

A Lorenz curve can be used to illustrate

The table shows the distributions of market income and money income in the United States in 2007. -According to the table above, income is redistributed from the ________ of households to the ________ of households.

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

-In the figure above, the difference in wage rate between low-skilled and high-skilled labor is

The measured distribution of ________ is a more accurate indicator of the degree of economic inequality than the measured distribution of ________ because ________ data does NOT include ________.

When China embarked on market changes towards urbanization and manufacturing in 1978, urban disposable incomes were 2.6 times greater than rural net income. By 2008 they were 3.3 times bigger. These market changes have led to

-In the figure above, the middle fifth of all households receive what share of income?

The lifetime income distribution of income is a ________ accurate indicator of the degree of economic inequality than the distribution of ________.

In the U.S. in 2016 the percentage of the Americans living below the poverty line was about

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

The table shows the distributions of market income and money income in the United States in 2007. -According to the table above, income is redistributed from the of households to the of households.

The measured distribution of is a more accurate indicator of the degree of economic inequality than the measured distribution of because data does NOT include .

The lifetime income distribution of income is a accurate indicator of the degree of economic inequality than the distribution of .