Question 1

Median household income in the United States has increased from $38,771 in 1967 to $59,036 in 2016. Based only on this fact, we can conclude that

Accepted Answer

A)  Inequality is increasing in the United States. 
B)  Inequality is decreasing in the United States. 
C)  Inequality is not changing in the United States. 
D)  We cannot conclude anything about inequality in the United States without more information. 
A)  Inequality is increasing in the United States. 
B)  Inequality is decreasing in the United States. 
C)  Inequality is not changing in the United States. 
D)  We cannot conclude anything about inequality in the United States without more information.

Question 2

-The above figure shows the Lorenz curves for four different countries. Which of the following statements CANNOT be made on the basis of the graph?

Accepted Answer

A)  Incomes are distributed unequally in all four countries. 
B)  Income distribution in country D is the most unequal among the four countries. 
C)  Incomes are higher in country A than in country B. 
D)  Income distribution is more equal in country B than in country D. 
A)  Incomes are distributed unequally in all four countries. 
B)  Income distribution in country D is the most unequal among the four countries. 
C)  Incomes are higher in country A than in country B. 
D)  Income distribution is more equal in country B than in country D.

Question 3

Which of the following is an example of a subsidized service?

Accepted Answer

A)  Social Security payments to retirees 
B)  Social Security payments to widows 
C)  welfare payments to the unemployed 
D)  Medicare reimbursements to hospitals 
A)  Social Security payments to retirees 
B)  Social Security payments to widows 
C)  welfare payments to the unemployed 
D)  Medicare reimbursements to hospitals

Question 4

A tax is progressive if the average tax rate

Accepted Answer

A)  increases as income increases. 
B)  increases as income decreases. 
C)  is negative. 
D)  is positive. 
A)  increases as income increases. 
B)  increases as income decreases. 
C)  is negative. 
D)  is positive.

Question 5

-In the above figure, if the Lorenz curve were to move closer to the diagonal line containing points b and c, the income distribution would be

Accepted Answer

A)  more unequal. 
B)  more equal. 
C)  unchanged. 
D)  More information is needed to determine how this change would affect the income distribution. 
A)  more unequal. 
B)  more equal. 
C)  unchanged. 
D)  More information is needed to determine how this change would affect the income distribution.

Question 6

By human capital, economists mean

Accepted Answer

A)  machines that replace humans. 
B)  machines engineered to avoid operator injury. 
C)  the accumulated skill and knowledge of humans. 
D)  humans who perform repetitive tasks. 
A)  machines that replace humans. 
B)  machines engineered to avoid operator injury. 
C)  the accumulated skill and knowledge of humans. 
D)  humans who perform repetitive tasks.

Question 7

Income (percent of total)
  
-The table shows income distributions in the United States and Canada in a recent year.
a) Draw a Lorenz curve for the United States. According to your graph, what is the percentage of income received by the poorest 30 percent of households? The richest 10 percent?
b) On the same graph, draw a Lorenz curve for Canada. According to your graph, what is the percentage of income received by the poorest 30 percent of households? The richest 10 percent?
c) Draw the line of equality. How is it related to the Lorenz curve?
d) Is income distributed more equally in the United States or in Canada? Which country's Gini ratio is closer to zero? Explain your answers.

Accepted Answer

@#IMG-DLM& a) See the figure above. The percentage

Question 8

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

Accepted Answer

A)  4.7 
B)  2.3 
C)  1.5 
D)  3.8 
A)  4.7 
B)  2.3 
C)  1.5 
D)  3.8

Question 9

-In the figure above, the quantity of high-skilled labor employed is

Accepted Answer

A)  2,000 hours per day. 
B)  4,000 hours per day. 
C)  5,000 hours per day. 
D)  7,000 hours per day. 
A)  2,000 hours per day. 
B)  4,000 hours per day. 
C)  5,000 hours per day. 
D)  7,000 hours per day.

Question 10

-In the above figure, point ________ shows an equal distribution of income, while point ________ shows an unequal distribution of income.

Accepted Answer

A)  a, b 
B)  b, c 
C)  b, a 
D)  a, d 
A)  a, b 
B)  b, c 
C)  b, a 
D)  a, d

Question 11

What is "human capital"? How is it important in the determination of a worker's wage rate?

Accepted Answer

Human capital is the skill, education, a

Median household income in the United States has increased from $38,771 in 1967 to $59,036 in 2016. Based only on this fact, we can conclude that

-The above figure shows the Lorenz curves for four different countries. Which of the following statements CANNOT be made on the basis of the graph?

Which of the following is an example of a subsidized service?

A tax is progressive if the average tax rate

-In the above figure, if the Lorenz curve were to move closer to the diagonal line containing points b and c, the income distribution would be

By human capital, economists mean

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

-In the figure above, the quantity of high-skilled labor employed is

-In the above figure, point shows an equal distribution of income, while point shows an unequal distribution of income.

What is "human capital"? How is it important in the determination of a worker's wage rate?

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

Median household income in the United States has increased from $38,771 in 1967 to $59,036 in 2016. Based only on this fact, we can conclude that

-The above figure shows the Lorenz curves for four different countries. Which of the following statements CANNOT be made on the basis of the graph?

Which of the following is an example of a subsidized service?

A tax is progressive if the average tax rate

-In the above figure, if the Lorenz curve were to move closer to the diagonal line containing points b and c, the income distribution would be

By human capital, economists mean

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

-In the figure above, the quantity of high-skilled labor employed is

-In the above figure, point ________ shows an equal distribution of income, while point ________ shows an unequal distribution of income.

What is "human capital"? How is it important in the determination of a worker's wage rate?

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 above figure, point shows an equal distribution of income, while point shows an unequal distribution of income.