Question 1

Which of the following would show the LEAST amount of inequality?

Accepted Answer

A)  Measured annual income. 
B)  Measured annual wealth. 
C)  Lifetime income. 
D)  Measured annual income and annual wealth are equally distributed and are more equally distributed than lifetime wealth. 
A)  Measured annual income. 
B)  Measured annual wealth. 
C)  Lifetime income. 
D)  Measured annual income and annual wealth are equally distributed and are more equally distributed than lifetime wealth.

Question 2

-The figure above shows the demand for and supply of low-skilled labor. High-skilled workers have twice the marginal product of low-skilled workers. The cost of acquiring the skill adds $5 an hour to the wage that must be offered to attract high-skilled labor at each employment level.
a) What is the equilibrium wage rate of low-skilled labor and the equilibrium quantity of low-skilled labor employed?
b) Draw and explain the demand curve for high-skilled labor.
c) Draw and explain the supply curve of high-skilled labor.
d) What is the equilibrium wage rate of high-skilled labor and the equilibrium quantity of high-skilled labor employed?

Accepted Answer

@#IMG-DLM& a) The figure above shows the supply of

Question 3

The U.S. government provides monthly payments to retired workers under which program?

Accepted Answer

A)  the Old Age, Survivors, Disability and Health Insurance (OASDHI) 
B)  the Temporary Assistance for Needy Households (TANF) 
C)  the Supplementary Security Income (SSI) 
D)  a series of income tax rebates 
A)  the Old Age, Survivors, Disability and Health Insurance (OASDHI) 
B)  the Temporary Assistance for Needy Households (TANF) 
C)  the Supplementary Security Income (SSI) 
D)  a series of income tax rebates

Question 4

-The first table above gives the average income received by each 20 percent group of households. Complete the second table. Label the axes above and then plot the Lorenz curve.

Accepted Answer

@#IMG-DLM& @#IMG-DLM& The completed tabl

Question 5

On the Lorenz curve graph, the area between the line of equality and the Lorenz curve is 2,500, and the entire area beneath the line of equality is 5,000. What does the Gini ratio equal?

Accepted Answer

The Gini ratio is the ratio of

Question 6

Lifetime income is distributed

Accepted Answer

A)  less equally than annual income and less equally than measured wealth. 
B)  less equally than annual income and more equally than measured wealth. 
C)  more equally than annual income and less equally than measured wealth. 
D)  more equally than annual income and more equally than measured wealth. 
A)  less equally than annual income and less equally than measured wealth. 
B)  less equally than annual income and more equally than measured wealth. 
C)  more equally than annual income and less equally than measured wealth. 
D)  more equally than annual income and more equally than measured wealth.

Question 7

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

Accepted Answer

A)  0 percent 
B)  2 percent 
C)  5 percent 
D)  10 percent 
A)  0 percent 
B)  2 percent 
C)  5 percent 
D)  10 percent

Question 8

In recent years, information technology such as computers and scanners have been a ________ for low-skilled labor and have led to ________ wage rates for low-skilled workers.

Accepted Answer

A)  substitute; higher 
B)  substitute; lower 
C)  complement; higher 
D)  complement; lower 
A)  substitute; higher 
B)  substitute; lower 
C)  complement; higher 
D)  complement; lower

Question 9

-In the figure above, 10 percent of income in country C is distributed to the

Accepted Answer

A)  richest 10 percent of the households. 
B)  poorest 10 percent of the households. 
C)  poorest 30 percent of the households. 
D)  poorest 70 percent of the households. 
A)  richest 10 percent of the households. 
B)  poorest 10 percent of the households. 
C)  poorest 30 percent of the households. 
D)  poorest 70 percent of the households.

Question 10

-In the figure above, income

Accepted Answer

A)  is most equally distributed in country A. 
B)  is most equally distributed in country B. 
C)  is most equally distributed in country C. 
D)  is equally distributed in all three countries. 
A)  is most equally distributed in country A. 
B)  is most equally distributed in country B. 
C)  is most equally distributed in country C. 
D)  is equally distributed in all three countries.

Question 11

Because skills are costly to obtain, at a given wage rate, the

Accepted Answer

A)  quantity demanded of high-skilled labor is less than the quantity demanded of low-skilled labor. 
B)  quantity demanded of high-skilled labor is greater than the quantity demanded of low-skilled labor. 
C)  quantity supplied of high-skilled labor is less than the quantity supplied of low-skilled labor. 
D)  quantity supplied of high-skilled labor is greater than the quantity supplier of low-skilled labor. 
A)  quantity demanded of high-skilled labor is less than the quantity demanded of low-skilled labor. 
B)  quantity demanded of high-skilled labor is greater than the quantity demanded of low-skilled labor. 
C)  quantity supplied of high-skilled labor is less than the quantity supplied of low-skilled labor. 
D)  quantity supplied of high-skilled labor is greater than the quantity supplier of low-skilled labor.

Question 12

-The above figure shows two Lorenz curves. Lorenz curve A shows the distribution of income and Lorenz curve B shows the distribution of wealth. Which statement below is CORRECT?

Accepted Answer

A)  The Lorenz curve for wealth shows that wealth is distributed less equally because wealth does not include human capital. 
B)  The Lorenz curve for income shows that income is distributed less equally because income does not include income from stocks and bonds. 
C)  The Lorenz curves show wealth is greater than income. 
D)  The Lorenz curves show income is greater than wealth. 
A)  The Lorenz curve for wealth shows that wealth is distributed less equally because wealth does not include human capital. 
B)  The Lorenz curve for income shows that income is distributed less equally because income does not include income from stocks and bonds. 
C)  The Lorenz curves show wealth is greater than income. 
D)  The Lorenz curves show income is greater than wealth.

Question 13

The mean household income is

Accepted Answer

A)  the income that separates households into two equal groups. 
B)  the most common household income. 
C)  the percentage of total income received by the richest 20 percent of households. 
D)  the average household income. 
A)  the income that separates households into two equal groups. 
B)  the most common household income. 
C)  the percentage of total income received by the richest 20 percent of households. 
D)  the average household income.

Question 14

How has income inequality changed in recent years? What factors account for the changes?

Accepted Answer

Over the last couple of decades, income

Question 15

-The table above shows the distribution of income in Swacko. The government of Swacko imposes a 20 percent tax on people with the highest 40 percent of income. The government then distributes 40 percent of the tax collected to the lowest 20 percent and 30 percent to the second 20 percent and the middle 20 percent. After the redistribution, the Lorenz curve for income

Accepted Answer

A)  is equal to the line of equality. 
B)  equals the Lorenz curve for wealth. 
C)  is closer to the line of equality. 
D)  is above the line of equality. 
A)  is equal to the line of equality. 
B)  equals the Lorenz curve for wealth. 
C)  is closer to the line of equality. 
D)  is above the line of equality.

Question 16

What is the main reason that the distribution of measured wealth is more unequal than the distribution of income?

Accepted Answer

The distribution of income sta

Question 17

________ is the single biggest factor affecting income distribution in the United States.

Accepted Answer

A)  Location of household 
B)  Type of household 
C)  Education 
D)  Age of household 
A)  Location of household 
B)  Type of household 
C)  Education 
D)  Age of household

Question 18

-The above figure shows the Lorenz curves for four different countries. Which of the following statements CAN be made on the basis of the graph?

Accepted Answer

A)  Country C has the best balance between equity and efficiency. 
B)  Country A is a socialist country. 
C)  The income distribution is more equal in country B than in country D. 
D)  all of the above 
A)  Country C has the best balance between equity and efficiency. 
B)  Country A is a socialist country. 
C)  The income distribution is more equal in country B than in country D. 
D)  all of the above

Question 19

Of the approximate total population of 300 million people in America, about how many have incomes below the official poverty level?

Accepted Answer

A)  approximately 13 million 
B)  approximately 41 million 
C)  approximately 73 million 
D)  approximately 104 million 
A)  approximately 13 million 
B)  approximately 41 million 
C)  approximately 73 million 
D)  approximately 104 million

Question 20

Economists who have compared the incomes of never-married men and women have found that with equal amounts of human capital

Accepted Answer

A)  the wages of these two groups are the same. 
B)  men earn significantly more than women. 
C)  women earn significantly more than men. 
D)  men specialize more in home production. 
A)  the wages of these two groups are the same. 
B)  men earn significantly more than women. 
C)  women earn significantly more than men. 
D)  men specialize more in home production.

Which of the following would show the LEAST amount of inequality?

The U.S. government provides monthly payments to retired workers under which program?

-The first table above gives the average income received by each 20 percent group of households. Complete the second table. Label the axes above and then plot the Lorenz curve.

On the Lorenz curve graph, the area between the line of equality and the Lorenz curve is 2,500, and the entire area beneath the line of equality is 5,000. What does the Gini ratio equal?

Lifetime income is distributed

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

In recent years, information technology such as computers and scanners have been a for low-skilled labor and have led to wage rates for low-skilled workers.

-In the figure above, 10 percent of income in country C is distributed to the

-In the figure above, income

Because skills are costly to obtain, at a given wage rate, the

-The above figure shows two Lorenz curves. Lorenz curve A shows the distribution of income and Lorenz curve B shows the distribution of wealth. Which statement below is CORRECT?

The mean household income is

How has income inequality changed in recent years? What factors account for the changes?

What is the main reason that the distribution of measured wealth is more unequal than the distribution of income?

________ is the single biggest factor affecting income distribution in the United States.

-The above figure shows the Lorenz curves for four different countries. Which of the following statements CAN be made on the basis of the graph?

Of the approximate total population of 300 million people in America, about how many have incomes below the official poverty level?

Economists who have compared the incomes of never-married men and women have found that with equal amounts of human capital

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

Which of the following would show the LEAST amount of inequality?

The U.S. government provides monthly payments to retired workers under which program?

-The first table above gives the average income received by each 20 percent group of households. Complete the second table. Label the axes above and then plot the Lorenz curve.

On the Lorenz curve graph, the area between the line of equality and the Lorenz curve is 2,500, and the entire area beneath the line of equality is 5,000. What does the Gini ratio equal?

Lifetime income is distributed

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

In recent years, information technology such as computers and scanners have been a ________ for low-skilled labor and have led to ________ wage rates for low-skilled workers.

-In the figure above, 10 percent of income in country C is distributed to the

-In the figure above, income

Because skills are costly to obtain, at a given wage rate, the

-The above figure shows two Lorenz curves. Lorenz curve A shows the distribution of income and Lorenz curve B shows the distribution of wealth. Which statement below is CORRECT?

The mean household income is

How has income inequality changed in recent years? What factors account for the changes?

What is the main reason that the distribution of measured wealth is more unequal than the distribution of income?

________ is the single biggest factor affecting income distribution in the United States.

-The above figure shows the Lorenz curves for four different countries. Which of the following statements CAN be made on the basis of the graph?

Of the approximate total population of 300 million people in America, about how many have incomes below the official poverty level?

Economists who have compared the incomes of never-married men and women have found that with equal amounts of human capital

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 recent years, information technology such as computers and scanners have been a for low-skilled labor and have led to wage rates for low-skilled workers.