Question 1

How does the idea of a leaky bucket relate to the study of income distribution?

Accepted Answer

The idea is drawn from the writings of t

Question 2

On net, the U.S.tax system is highly progressive.

Accepted Answer

A) True 
 B)False

Question 3

Affirmative action

Accepted Answer

A) requires potential employees to affirm their rights at the Equal Employment Opportunity Commission. 
B) outlaws discrimination in rates of pay and hiring standards. 
C) refers to active efforts to locate and hire members of underrepresented groups. 
D) is when members of underrepresented groups act to reduce workplace discrimination. 
A) requires potential employees to affirm their rights at the Equal Employment Opportunity Commission. 
B) outlaws discrimination in rates of pay and hiring standards. 
C) refers to active efforts to locate and hire members of underrepresented groups. 
D) is when members of underrepresented groups act to reduce workplace discrimination.

Question 4

A market system tends to create inequality.

Accepted Answer

A) True 
 B)False

Question 5

For most welfare recipients, the negative income tax plan would increase incentives to work.

Accepted Answer

A) True 
 B)False

Question 6

How do income redistribution programs affect equality and efficiency?

Accepted Answer

Programs intended to improve equality by

Question 7

With a negative income tax providing a minimum of $20,000 and a tax rate of 25 percent, what amount of supplement would the government pay to a household earning $10,000?

Accepted Answer

A) $5,000 
B) $10,000 
C) $17,500 
D) $20,000 
A) $5,000 
B) $10,000 
C) $17,500 
D) $20,000

Question 8

The national poverty rate in the United States reached a low in the

Accepted Answer

A) early 1960s. 
B) early 1970s. 
C) late 1970s. 
D) early 1980s. 
A) early 1960s. 
B) early 1970s. 
C) late 1970s. 
D) early 1980s.

Question 9

Susan argues that she is the victim of economic discrimination.The primary technical difficulty for an economist investigating her claim will be

Accepted Answer

A) defining economic discrimination. 
B) finding a worker with the same productivity as Susan for comparison purposes. 
C) defining statistical discrimination. 
D) measuring Susan's human capital. 
A) defining economic discrimination. 
B) finding a worker with the same productivity as Susan for comparison purposes. 
C) defining statistical discrimination. 
D) measuring Susan's human capital.

Question 10

There are several reasons why incomes are unequal, including differences in luck, experience, and schooling.

Accepted Answer

A) True 
 B)False

Question 11

It is not optimal to have equal incomes.

Accepted Answer

A) True 
 B)False

Question 12

Japanese employers tend to hire employees right out of college and train them for a lifetime job with the company.Over time they found that women often, but not always, married after a few years and left the company so they were not good training investments.Based on this experience, and despite the exceptions, firms stopped hiring any women for jobs that require substantial training.This practice is called

Accepted Answer

A) economic discrimination. 
B) statistical discrimination. 
C) compensating differentials. 
D) the substitution effect. 
A) economic discrimination. 
B) statistical discrimination. 
C) compensating differentials. 
D) the substitution effect.

Question 13

An example of an in-kind benefit is

Accepted Answer

A) a welfare payment. 
B) capital gains. 
C) a charitable contribution of money. 
D) public housing. 
A) a welfare payment. 
B) capital gains. 
C) a charitable contribution of money. 
D) public housing.

Question 14

The marginal productivity principle does not

Accepted Answer

A) assign higher prices to scarcer resources. 
B) create incentives for firms to discriminate.. 
C) guide firms to use society's resources efficiently. 
D) distribute incomes unequally among society. 
A) assign higher prices to scarcer resources. 
B) create incentives for firms to discriminate.. 
C) guide firms to use society's resources efficiently. 
D) distribute incomes unequally among society.

Question 15

Figure 21-1  
-In Figure 21-1, the optimal amount of equality lies only between which points?

Accepted Answer

A) A and B 
B) C and D 
C) D and E 
D) B and E 
A) A and B 
B) C and D 
C) D and E 
D) B and E

Question 16

In 2017, approximately what percent of Americans were below the poverty line?

Accepted Answer

A) 2 percent. 
B) 8 percent. 
C) 36 percent. 
D) 12 percent. 
A) 2 percent. 
B) 8 percent. 
C) 36 percent. 
D) 12 percent.

Question 17

The lowest-income fifth of the U.S.population ordinarily earns about 20 percent of the income.

Accepted Answer

A) True 
 B)False

Question 18

In 2017, the median income for a household of four was about

Accepted Answer

A) $50,000 
B) $60,000 
C) $80,000 
D) $100,000 
A) $50,000 
B) $60,000 
C) $80,000 
D) $100,000

Question 19

The existence of differences between the average earnings of men and women

Accepted Answer

A) proves the existence of economic discrimination. 
B) may be partially due to factors other than economic discrimination. 
C) proves that men on average invest more in their human capital than women do. 
D) indicates that men are on average smarter than women. 
A) proves the existence of economic discrimination. 
B) may be partially due to factors other than economic discrimination. 
C) proves that men on average invest more in their human capital than women do. 
D) indicates that men are on average smarter than women.

Question 20

The extent of discrimination is

Accepted Answer

A) measured by the differences in incomes. 
B) the reason for two-thirds of the income differential between black male workers and white male workers. 
C) difficult to quantify and controversial. 
D) easily measured for each category of workers. 
A) measured by the differences in incomes. 
B) the reason for two-thirds of the income differential between black male workers and white male workers. 
C) difficult to quantify and controversial. 
D) easily measured for each category of workers.

Exam 20: Poverty, Inequality, and Discrimination

How does the idea of a leaky bucket relate to the study of income distribution?

On net, the U.S.tax system is highly progressive.

Affirmative action

A market system tends to create inequality.

For most welfare recipients, the negative income tax plan would increase incentives to work.

How do income redistribution programs affect equality and efficiency?

With a negative income tax providing a minimum of $20,000 and a tax rate of 25 percent, what amount of supplement would the government pay to a household earning $10,000?

The national poverty rate in the United States reached a low in the

Susan argues that she is the victim of economic discrimination.The primary technical difficulty for an economist investigating her claim will be

There are several reasons why incomes are unequal, including differences in luck, experience, and schooling.

It is not optimal to have equal incomes.

An example of an in-kind benefit is

The marginal productivity principle does not

Figure 21-1 -In Figure 21-1, the optimal amount of equality lies only between which points?

In 2017, approximately what percent of Americans were below the poverty line?

The lowest-income fifth of the U.S.population ordinarily earns about 20 percent of the income.

In 2017, the median income for a household of four was about

The existence of differences between the average earnings of men and women

The extent of discrimination is

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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