Question 1

In the country of Wilkes, taxes are $5 million and benefits are $4 million. Income from labor is $25 million and income from capital is $15 million. What is market income?

Accepted Answer

A)  $20 million 
B)  $39 million 
C)  $40 million 
D)  $9 million 
A)  $20 million 
B)  $39 million 
C)  $40 million 
D)  $9 million

Question 2

If a Lorenz curve for a country's income bows more rightward over time, then the country's

Accepted Answer

A)  income is increasing. 
B)  income is decreasing. 
C)  income is becoming more unequally distributed. 
D)  income is becoming more equally distributed. 
A)  income is increasing. 
B)  income is decreasing. 
C)  income is becoming more unequally distributed. 
D)  income is becoming more equally distributed.

Question 3

Joe earns $100,000 per year. He pays a tax rate of 28 percent on the first $60,000 of income and a tax rate of 15 percent on income above $60,000. This tax system is an example of a

Accepted Answer

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

Question 4

Specialization of productive activity between men and women might explain why

Accepted Answer

A)  a married woman earns less than a married man. 
B)  a never-married man earns more than a never-married woman. 
C)  a never-married man earns the same as a married man. 
D)  a married woman earns more than a never-married woman. 
A)  a married woman earns less than a married man. 
B)  a never-married man earns more than a never-married woman. 
C)  a never-married man earns the same as a married man. 
D)  a married woman earns more than a never-married woman.

Question 5

Which of the following will NOT increase a worker's human capital?

Accepted Answer

A)  more work experience 
B)  more training 
C)  more schooling 
D)  a higher wage rate 
A)  more work experience 
B)  more training 
C)  more schooling 
D)  a higher wage rate

Question 6

Customer discrimination against female realtors ________ the number of female realtors and ________ their perceived value of marginal product.

Accepted Answer

A)  decreases; decreases 
B)  decreases; increases 
C)  increases; decreases 
D)  increases; increases 
A)  decreases; decreases 
B)  decreases; increases 
C)  increases; decreases 
D)  increases; increases

Question 7

-In the figure above, the Lorenz curve that shows the least inequality, but NOT perfect equality, is

Accepted Answer

A)  curve A. 
B)  curve B. 
C)  curve C. 
D)  curve D. 
A)  curve A. 
B)  curve B. 
C)  curve C. 
D)  curve D.

Question 8

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

Accepted Answer

A)  10 percent 
B)  20 percent 
C)  30 percent 
D)  40 percent 
A)  10 percent 
B)  20 percent 
C)  30 percent 
D)  40 percent

Question 9

The U.S. Gini ratio for income has ________ within recent decades, which means economic inequality has ________.

Accepted Answer

A)  decreased; increased 
B)  decreased; decreased 
C)  increased; decreased 
D)  increased; increased 
A)  decreased; increased 
B)  decreased; decreased 
C)  increased; decreased 
D)  increased; increased

Question 10

In the United States the poorest 20 percent of households receive about ________ of total income.

Accepted Answer

A)  1 percent 
B)  3 percent 
C)  10 percent 
D)  15 percent 
A)  1 percent 
B)  3 percent 
C)  10 percent 
D)  15 percent

Question 11

An increase in income equality causes the Lorenz curve to become more bowed away from the line of equality.

Accepted Answer

A) True 
 B)False

Question 12

The distribution of income in the United States became more unequal in the 1990s. One explanation for this trend is that advances in information technologies have ________ low-skilled labor and ________ high-skilled labor.

Accepted Answer

A)  decreased the demand for; increased the demand for 
B)  increased the demand for; decreased the demand for 
C)  decreased the supply of; increased the supply of 
D)  increased the supply of; decreased the supply of 
A)  decreased the demand for; increased the demand for 
B)  increased the demand for; decreased the demand for 
C)  decreased the supply of; increased the supply of 
D)  increased the supply of; decreased the supply of

Question 13

Of the following, which is the most accurate indicator of the degree of inequality?

Accepted Answer

A)  distribution of annual income 
B)  distribution of lifetime income 
C)  distribution of wealth 
D)  distribution of the sum of wealth and annual income 
A)  distribution of annual income 
B)  distribution of lifetime income 
C)  distribution of wealth 
D)  distribution of the sum of wealth and annual income

Question 14

-In the above table, which tax plan is proportional?

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 15

-In the figure above in the market for high-skilled labor, the equilibrium wage rate is

Accepted Answer

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

Question 16

The median household income is

Accepted Answer

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

Question 17

What factors make inheritances a source of increased economic inequality?

Accepted Answer

Two factors make inheritances a source o

Question 18

In Ireland, people's average tax rates decrease with the level of income. Ireland has a ________ tax structure.

Accepted Answer

A)  progressive 
B)  regressive 
C)  proportional 
D)  flat-rate 
A)  progressive 
B)  regressive 
C)  proportional 
D)  flat-rate

Question 19

-In the figure above, the richest 20 percent of all households receive what share of all income?

Accepted Answer

A)  10 percent 
B)  20 percent 
C)  30 percent 
D)  40 percent 
A)  10 percent 
B)  20 percent 
C)  30 percent 
D)  40 percent

Question 20

Relative to the supply curve of high-skilled workers, the supply curve of low-skilled workers is

Accepted Answer

A)  to the right. 
B)  above. 
C)  to the left. 
D)  on top of the high-skilled worker supply curve. 
A)  to the right. 
B)  above. 
C)  to the left. 
D)  on top of the high-skilled worker supply curve.

In the country of Wilkes, taxes are $5 million and benefits are $4 million. Income from labor is $25 million and income from capital is $15 million. What is market income?

If a Lorenz curve for a country's income bows more rightward over time, then the country's

Joe earns $100,000 per year. He pays a tax rate of 28 percent on the first $60,000 of income and a tax rate of 15 percent on income above $60,000. This tax system is an example of a

Specialization of productive activity between men and women might explain why

Which of the following will NOT increase a worker's human capital?

Customer discrimination against female realtors the number of female realtors and their perceived value of marginal product.

-In the figure above, the Lorenz curve that shows the least inequality, but NOT perfect equality, is

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

The U.S. Gini ratio for income has within recent decades, which means economic inequality has .

In the United States the poorest 20 percent of households receive about ________ of total income.

An increase in income equality causes the Lorenz curve to become more bowed away from the line of equality.

The distribution of income in the United States became more unequal in the 1990s. One explanation for this trend is that advances in information technologies have low-skilled labor and high-skilled labor.

Of the following, which is the most accurate indicator of the degree of inequality?

-In the above table, which tax plan is proportional?

-In the figure above in the market for high-skilled labor, the equilibrium wage rate is

The median household income is

What factors make inheritances a source of increased economic inequality?

In Ireland, people's average tax rates decrease with the level of income. Ireland has a ________ tax structure.

-In the figure above, the richest 20 percent of all households receive what share of all income?

Relative to the supply curve of high-skilled workers, the supply curve of low-skilled workers is

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 country of Wilkes, taxes are $5 million and benefits are $4 million. Income from labor is $25 million and income from capital is $15 million. What is market income?

If a Lorenz curve for a country's income bows more rightward over time, then the country's

Joe earns $100,000 per year. He pays a tax rate of 28 percent on the first $60,000 of income and a tax rate of 15 percent on income above $60,000. This tax system is an example of a

Specialization of productive activity between men and women might explain why

Which of the following will NOT increase a worker's human capital?

Customer discrimination against female realtors ________ the number of female realtors and ________ their perceived value of marginal product.

-In the figure above, the Lorenz curve that shows the least inequality, but NOT perfect equality, is

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

The U.S. Gini ratio for income has ________ within recent decades, which means economic inequality has ________.

In the United States the poorest 20 percent of households receive about ________ of total income.

An increase in income equality causes the Lorenz curve to become more bowed away from the line of equality.

The distribution of income in the United States became more unequal in the 1990s. One explanation for this trend is that advances in information technologies have ________ low-skilled labor and ________ high-skilled labor.

Of the following, which is the most accurate indicator of the degree of inequality?

-In the above table, which tax plan is proportional?

-In the figure above in the market for high-skilled labor, the equilibrium wage rate is

The median household income is

What factors make inheritances a source of increased economic inequality?

In Ireland, people's average tax rates decrease with the level of income. Ireland has a ________ tax structure.

-In the figure above, the richest 20 percent of all households receive what share of all income?

Relative to the supply curve of high-skilled workers, the supply curve of low-skilled workers is

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

Customer discrimination against female realtors the number of female realtors and their perceived value of marginal product.

The U.S. Gini ratio for income has within recent decades, which means economic inequality has .

The distribution of income in the United States became more unequal in the 1990s. One explanation for this trend is that advances in information technologies have low-skilled labor and high-skilled labor.