Question 1

If one includes in-kind income in the calculation, the

Accepted Answer

A) official poverty rate becomes meaningless. 
B) incidence of poverty actually increases. 
C) poverty rate is unchanged. 
D) fraction of the population in poverty drops. 
A) official poverty rate becomes meaningless. 
B) incidence of poverty actually increases. 
C) poverty rate is unchanged. 
D) fraction of the population in poverty drops.

Question 2

In 2017, the poverty line for a family of four was about $42,000.

Accepted Answer

A) True 
 B)False

Question 3

Under current federal antipoverty programs,

Accepted Answer

A) economic equality is promoted at the least possible cost in economic efficiency. 
B) a family's benefits do not depend on its earnings from work. 
C) a family's total income (cash and in-kind benefits) may actually fall if its earnings from work rise. 
D) families with children are entitled to no more assistance than families without children. 
A) economic equality is promoted at the least possible cost in economic efficiency. 
B) a family's benefits do not depend on its earnings from work. 
C) a family's total income (cash and in-kind benefits) may actually fall if its earnings from work rise. 
D) families with children are entitled to no more assistance than families without children.

Question 4

If incomes were equally distributed in the United States, each fifth of the population would receive ____ percent of the income.

Accepted Answer

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

Question 5

Economic discrimination occurs when two equal factors of production are paid differently.

Accepted Answer

A) True 
 B)False

Question 6

If a female supervisor is discriminated against by one of her workers who refuses to cooperate, she may earn lower wages.

Accepted Answer

A) True 
 B)False

Question 7

In 1962, Michael Harrington argued in The Other America that there was chronic, severe poverty in America.

Accepted Answer

A) True 
 B)False

Question 8

Is education the swiftest method to eliminate poverty.Explain.

Accepted Answer

Evidence points clearly to the conclusio

Question 9

The essence of the trade-off between equality and efficiency is that

Accepted Answer

A) taxes and transfers reduce incentives to earn income, thus reducing GNP. 
B) people are ideologically opposed to socialistic income redistribution. 
C) redistribution violates the "work ethic." 
D) people are prejudiced against blacks and women. 
A) taxes and transfers reduce incentives to earn income, thus reducing GNP. 
B) people are ideologically opposed to socialistic income redistribution. 
C) redistribution violates the "work ethic." 
D) people are prejudiced against blacks and women.

Question 10

Which of the following is not a source of inequality in incomes?

Accepted Answer

A) Redistribution of income 
B) Differences in intensity of work 
C) Differences in ability 
D) Risk taking 
A) Redistribution of income 
B) Differences in intensity of work 
C) Differences in ability 
D) Risk taking

Question 11

The welfare program economists believe to be most compatible with economic efficiency is

Accepted Answer

A) a regressive tax system. 
B) AFDC. 
C) a negative income tax. 
D) Medicare/Medicaid. 
A) a regressive tax system. 
B) AFDC. 
C) a negative income tax. 
D) Medicare/Medicaid.

Question 12

Risk taking

Accepted Answer

A) is economically wasteful. 
B) is a cause of income inequality. 
C) is not a cause of income inequality. 
D) evens out income inequality because of the bell curve. 
A) is economically wasteful. 
B) is a cause of income inequality. 
C) is not a cause of income inequality. 
D) evens out income inequality because of the bell curve.

Question 13

What does a market do poorly?

Accepted Answer

A) Incentivize individuals to efficiently use society's resources 
B) Price labor based actually on marginal productivity 
C) Promote equal income distribution 
D) Allocate resources to their highest value uses 
A) Incentivize individuals to efficiently use society's resources 
B) Price labor based actually on marginal productivity 
C) Promote equal income distribution 
D) Allocate resources to their highest value uses

Question 14

The simplest economic definition of discrimination is

Accepted Answer

A) prejudice. 
B) unequal pay for equal work. 
C) a dislike by one group associating with another group. 
D) unequal pay for unequal work. 
A) prejudice. 
B) unequal pay for equal work. 
C) a dislike by one group associating with another group. 
D) unequal pay for unequal work.

Question 15

With a negative income tax, if people get at least $10,000 and the breakeven point is $50,000, what is the tax rate?

Accepted Answer

A) 50 percent 
B) 25 percent 
C) 20 percent 
D) 5 percent 
A) 50 percent 
B) 25 percent 
C) 20 percent 
D) 5 percent

Question 16

A minority candidate may not have the same chances as a white candidate for a job simply based on an employer's misconceptions about minorities.

Accepted Answer

A) True 
 B)False

Question 17

Taken as a whole, antipoverty programs may actually put a poor family in a position in which the family becomes worse off if its earnings rise.

Accepted Answer

A) True 
 B)False

Question 18

Discuss the major programs to combat poverty and evaluate them on the basis of work incentives.

Accepted Answer

One program is education, although this

Question 19

Inheritance taxes tend to increase income inequality in the long run.

Accepted Answer

A) True 
 B)False

Question 20

In 2017, about what percentage of total income was earned by the poorest fifth of all U.S.households?

Accepted Answer

A) 12 percent 
B) 6 percent 
C) 3 percent 
D) 1 percent 
A) 12 percent 
B) 6 percent 
C) 3 percent 
D) 1 percent

Exam 20: Poverty, Inequality, and Discrimination

If one includes in-kind income in the calculation, the

In 2017, the poverty line for a family of four was about $42,000.

Under current federal antipoverty programs,

If incomes were equally distributed in the United States, each fifth of the population would receive ____ percent of the income.

Economic discrimination occurs when two equal factors of production are paid differently.

If a female supervisor is discriminated against by one of her workers who refuses to cooperate, she may earn lower wages.

In 1962, Michael Harrington argued in The Other America that there was chronic, severe poverty in America.

Is education the swiftest method to eliminate poverty.Explain.

The essence of the trade-off between equality and efficiency is that

Which of the following is not a source of inequality in incomes?

The welfare program economists believe to be most compatible with economic efficiency is

Risk taking

What does a market do poorly?

The simplest economic definition of discrimination is

With a negative income tax, if people get at least $10,000 and the breakeven point is $50,000, what is the tax rate?

A minority candidate may not have the same chances as a white candidate for a job simply based on an employer's misconceptions about minorities.

Taken as a whole, antipoverty programs may actually put a poor family in a position in which the family becomes worse off if its earnings rise.

Discuss the major programs to combat poverty and evaluate them on the basis of work incentives.

Inheritance taxes tend to increase income inequality in the long run.

In 2017, about what percentage of total income was earned by the poorest fifth of all U.S.households?

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

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