Question 1

The poverty line is the income level

Accepted Answer

A) earned by a worker employed full time at the minimum wage. 
B) below which a family is officially considered "poor." 
C) above which a family is not entitled to government assistance. 
D) that is the average for American families. 
A) earned by a worker employed full time at the minimum wage. 
B) below which a family is officially considered "poor." 
C) above which a family is not entitled to government assistance. 
D) that is the average for American families. B

Question 2

The negative income tax has little support among economists because it distorts incentives to work.

Accepted Answer

A) True 
 B)False  False

Question 3

Which of the following tax does not decrease income inequality?

Accepted Answer

A) Sales taxes 
B) Personal income taxes 
C) Estate taxes 
D) Negative income taxes 
A) Sales taxes 
B) Personal income taxes 
C) Estate taxes 
D) Negative income taxes A

Question 4

Economic discrimination and prejudice

Accepted Answer

A) are synonymous. 
B) must both exist in statistical discrimination. 
C) often occur together. 
D) are mutually exclusive. 
A) are synonymous. 
B) must both exist in statistical discrimination. 
C) often occur together. 
D) are mutually exclusive.

Question 5

From a purely economic point of view, discrimination exists when

Accepted Answer

A) black teenagers earn more than white teenagers. 
B) all factors are earning average products. 
C) women earn less than men. 
D) equivalent factors earn different payments for equal contributions to output. 
A) black teenagers earn more than white teenagers. 
B) all factors are earning average products. 
C) women earn less than men. 
D) equivalent factors earn different payments for equal contributions to output.

Question 6

The two ways to define poverty are which of the following?

Accepted Answer

A) Relatively and absolutely 
B) Absolutely and definitely 
C) Definitely and conceptually 
D) Definitely and receptively 
A) Relatively and absolutely 
B) Absolutely and definitely 
C) Definitely and conceptually 
D) Definitely and receptively

Question 7

Which of the following best describes compensating wage differentials?

Accepted Answer

A) Some jobs are more difficult than others, and the pay for them reflects this. 
B) Some jobs require more training than others, and the pay for them reflects this. 
C) Some jobs require more experience than others, and the pay for them reflects this. 
D) Some jobs require unique abilities, and the pay for them reflects this. 
A) Some jobs are more difficult than others, and the pay for them reflects this. 
B) Some jobs require more training than others, and the pay for them reflects this. 
C) Some jobs require more experience than others, and the pay for them reflects this. 
D) Some jobs require unique abilities, and the pay for them reflects this.

Question 8

In the negative income tax framework, a break-even point of $16,000 and a tax rate of 25 percent imply a guarantee of which of the following figures?

Accepted Answer

A) $4,000 
B) $8,000 
C) $12,000 
D) $16,000 
A) $4,000 
B) $8,000 
C) $12,000 
D) $16,000

Question 9

The controversy over affirmative action illustrates the

Accepted Answer

A) trade-off between equality and efficiency. 
B) incentive problems created by transfer payments. 
C) incentive problems created by personal income taxes. 
D) trade-off between progressive and regressive taxes. 
A) trade-off between equality and efficiency. 
B) incentive problems created by transfer payments. 
C) incentive problems created by personal income taxes. 
D) trade-off between progressive and regressive taxes.

Question 10

Discuss the controversy surrounding affirmative action.How does this controversy illustrate the trade-off between equality and efficiency?

Accepted Answer

Critics claim that affirmative action am

Question 11

Table 21-1   ​
-Consider the economy described by the income distribution in Table 21-1.From this table, we can conclude that the poorest 60 percent of the population earns

Accepted Answer

A) 15 percent of the income. 
B) 17 percent of the income. 
C) 32 percent of the income. 
D) 68 percent of the income. 
A) 15 percent of the income. 
B) 17 percent of the income. 
C) 32 percent of the income. 
D) 68 percent of the income.

Question 12

Nondiscriminatory firms hiring in the market place have a cost advantage.

Accepted Answer

A) True 
 B)False

Question 13

Table 21-1   ​
-Consider the economy described by the income distribution in Table 21-1.From this table, we can conclude that the

Accepted Answer

A) poorest quarter of the population earns 15 percent of the income. 
B) "middle" fifth of the population earns 32 percent of the income. 
C) poorest quarter of the population earns 19 percent of the income. 
D) richest fifth of the population earns 49 percent of the income. 
A) poorest quarter of the population earns 15 percent of the income. 
B) "middle" fifth of the population earns 32 percent of the income. 
C) poorest quarter of the population earns 19 percent of the income. 
D) richest fifth of the population earns 49 percent of the income.

Question 14

The 1994 book by Murray and Herrnstein, The Bell Curve, was about

Accepted Answer

A) government debt. 
B) the intelligence factor. 
C) capital growth. 
D) military readiness. 
A) government debt. 
B) the intelligence factor. 
C) capital growth. 
D) military readiness.

Question 15

The concept of relative poverty

Accepted Answer

A) leads to the concept of inequality. 
B) replaces the need for concepts of absolute poverty. 
C) is measured relative to the poverty line. 
D) is only relevant in low income countries. 
A) leads to the concept of inequality. 
B) replaces the need for concepts of absolute poverty. 
C) is measured relative to the poverty line. 
D) is only relevant in low income countries.

Question 16

Which of the following is not true of employers who discriminate in a competitive market?

Accepted Answer

A) The employer will likely have to pay higher wages. 
B) The employer will likely be at a competitive disadvantage. 
C) The employer will likely have higher productivity. 
D) The employer will likely have higher costs than non-discriminating firms. 
A) The employer will likely have to pay higher wages. 
B) The employer will likely be at a competitive disadvantage. 
C) The employer will likely have higher productivity. 
D) The employer will likely have higher costs than non-discriminating firms.

Question 17

What is the difference between the absolute and relative concepts of poverty? What are the major problems in measuring poverty with them?

Accepted Answer

The absolute concept of poverty is the m

Question 18

In labor markets, risk taking accounts for some income differences.

Accepted Answer

A) True 
 B)False

Question 19

Discrimination exists when a man and a woman with the same levels of education earn different incomes.

Accepted Answer

A) True 
 B)False

Question 20

Death taxes, both state and federal, account for about _____ percent of total tax revenue.

Accepted Answer

A) 1 
B) 2 
C) 3 
D) 10 
A) 1 
B) 2 
C) 3 
D) 10

Exam 20: Poverty, Inequality, and Discrimination

The poverty line is the income level

The negative income tax has little support among economists because it distorts incentives to work.

Which of the following tax does not decrease income inequality?

Economic discrimination and prejudice

From a purely economic point of view, discrimination exists when

The two ways to define poverty are which of the following?

Which of the following best describes compensating wage differentials?

In the negative income tax framework, a break-even point of $16,000 and a tax rate of 25 percent imply a guarantee of which of the following figures?

The controversy over affirmative action illustrates the

Discuss the controversy surrounding affirmative action.How does this controversy illustrate the trade-off between equality and efficiency?

Table 21-1 ​ -Consider the economy described by the income distribution in Table 21-1.From this table, we can conclude that the poorest 60 percent of the population earns

Nondiscriminatory firms hiring in the market place have a cost advantage.

Table 21-1 ​ -Consider the economy described by the income distribution in Table 21-1.From this table, we can conclude that the

The 1994 book by Murray and Herrnstein, The Bell Curve, was about

The concept of relative poverty

Which of the following is not true of employers who discriminate in a competitive market?

What is the difference between the absolute and relative concepts of poverty? What are the major problems in measuring poverty with them?

In labor markets, risk taking accounts for some income differences.

Discrimination exists when a man and a woman with the same levels of education earn different incomes.

Death taxes, both state and federal, account for about _____ percent of total tax revenue.

What Is Economics

The Economony: Myth and Reality

The Fundamental Economic Problem: Scarcity and Choice

Supply and Demand: an Initial Look

Consumer Choice: Individual and Market Demand

Demand and Elasticity

Production, Inputs, and Cost: Building Blocks for Supply Analysis

Output, Price, and Profit: the Importance of Marginal Analysis

The Financial Markets and the Economy: the Tail That Wags the Dog

The Firm and the Industry Under Perfect Competition

The Case for Free Markets: the Price System

Monopoly

Between Competition and Monopoly

Limiting Market Power: Antitrust and Regulation

The Shortcomings of Free Markets

The Economics of the Environment, and Natural Resources

Taxation and Resource Allocation

Pricing the Factors of Production

Labor and Entrepreneurship: the Human Inputs

An Introduction to Macroeconomics

The Goals of Macroeconomic Policy

Economic Growth: Theory and Policy

Aggregate Demand and the Powerful Consumer

Demand-Side Equilibrium: Unemployment or Inflation

Bringing in the Supply Side: Unemployment and Inflation

Managing Aggregate Demand: Fiscal Policy

Money and the Banking System

Monetary Policy: Conventional and Unconventional

The Financial Crisis and the Great Recession

The Debate Over Monetary and Fiscal Policy

Budget Deficits in the Short and Long Run

The Trade-Off Between Inflation and Unemployment

International Trade and Comparative Advantage

The International Monetary System: Order or Disorder

Exchange Rates and the Macroeconomy

Contemporary Issues in the Useconomy

Filters

Table 21-1 -Consider the economy described by the income distribution in Table 21-1.From this table, we can conclude that the poorest 60 percent of the population earns

Table 21-1 -Consider the economy described by the income distribution in Table 21-1.From this table, we can conclude that the