Question 1

The wages and salaries that people earn differ partly because of differences in

Accepted Answer

A) wealth. 
B) ability. 
C) Social Security payments. 
D) in-kind transfer payments. 
A) wealth. 
B) ability. 
C) Social Security payments. 
D) in-kind transfer payments.

Question 2

Since 1980 the distribution of income has

Accepted Answer

A) remained virtually constant from year to year. 
B) become more equal. 
C) varied considerably from year to year but in general has been stable. 
D) become less equal. 
A) remained virtually constant from year to year. 
B) become more equal. 
C) varied considerably from year to year but in general has been stable. 
D) become less equal.

Question 3

Which of the following is not one of the causes of the unequal distribution of income in the United States?

Accepted Answer

A) ability differences 
B) education and training 
C) job preferences and job risks 
D) income taxes and transfers 
A) ability differences 
B) education and training 
C) job preferences and job risks 
D) income taxes and transfers

Question 4

A Lorenz curve showing perfect equality in the distribution of income

Accepted Answer

A) coincides with the horizontal axis. 
B) coincides with the vertical axis. 
C) is a straight line with a 45-degree angle. 
D) is a curve bowed to the southwest. 
A) coincides with the horizontal axis. 
B) coincides with the vertical axis. 
C) is a straight line with a 45-degree angle. 
D) is a curve bowed to the southwest.

Question 5

One basic argument for redistributing income to achieve more equality rests on the idea of maximizing the society's total utility when there is diminishing marginal utility from income.

Accepted Answer

A) True 
 B)False

Question 6

Assume that there is a supply and demand market for nonpreferred workers. If prejudice against these workers among employers decreases, then there will be a(n)

Accepted Answer

A) increased supply of these workers, a rise in their wage rate, and a decrease in their employment. 
B) increased demand for these workers, a rise in their wage rate, and an increase in their employment. 
C) decreased supply of these workers, a fall in their wage rate, and a decrease in their employment. 
D) decreased demand for these workers, a fall in their wage rate, and a decrease in their employment. 
A) increased supply of these workers, a rise in their wage rate, and a decrease in their employment. 
B) increased demand for these workers, a rise in their wage rate, and an increase in their employment. 
C) decreased supply of these workers, a fall in their wage rate, and a decrease in their employment. 
D) decreased demand for these workers, a fall in their wage rate, and a decrease in their employment.

Question 7

Housing subsidies for low-income households

Accepted Answer

A) represent a cash transfer. 
B) are a part of the U.S. social insurance programs. 
C) represent a noncash transfer. 
D) conflict with the leaky-bucket analogy. 
A) represent a cash transfer. 
B) are a part of the U.S. social insurance programs. 
C) represent a noncash transfer. 
D) conflict with the leaky-bucket analogy.

Question 8

What are some measurement issues involved in accurately measuring poverty?

Accepted Answer

The high cost of living in major metropo

Question 9

Assumptions: (1)the labor force comprises 9 million men and 9 million women workers; (2)the economy has 3 occupations, X, Y, and Z, each having identical demand curves for labor; (3)male and female workers are homogeneous with respect to their labor-market capabilities; (4)women are discriminated against by being excluded from occupations X and Y and are confined to Z; and (5)aside from discrimination, the economy is competitive, and workers seek to maximize their earnings.Refer to the diagram and list of assumptions. Under these circumstances 9 million women will be employed in occupation Z,

Accepted Answer

A) 5 million men in X, and 4 million men in Y. 
B) 3 million men in X, and 6 million men in Y. 
C) 6 million men in X, and 3 million men in Y. 
D) and 4.5 million men each in occupations X and Y. 
A) 5 million men in X, and 4 million men in Y. 
B) 3 million men in X, and 6 million men in Y. 
C) 6 million men in X, and 3 million men in Y. 
D) and 4.5 million men each in occupations X and Y.

Question 10

Suppose that a prejudiced African-American employer has a discrimination coefficient of $5/hour. Suppose also that the market wage rate is $20/hour for African-American workers, and $18/hour for Hispanic workers. In this case, the employer will

Accepted Answer

A) hire Hispanic workers 
B) not hire Hispanic workers unless their wage rate falls to $5/hour. 
C) not hire Hispanic workers regardless of wage rate. 
D) not hire Hispanic workers unless their wage rate falls to $15/hour. 
A) hire Hispanic workers 
B) not hire Hispanic workers unless their wage rate falls to $5/hour. 
C) not hire Hispanic workers regardless of wage rate. 
D) not hire Hispanic workers unless their wage rate falls to $15/hour.

Question 11

Social Security payments are primarily made to assist

Accepted Answer

A) families with dependent children. 
B) families affected by natural disasters. 
C) retired and disabled workers. 
D) unemployed workers. 
A) families with dependent children. 
B) families affected by natural disasters. 
C) retired and disabled workers. 
D) unemployed workers.

Question 12

Suppose an employer is biased against African Americans. If his discrimination coefficient is $4, the employer will

Accepted Answer

A) randomly hire African-American and white workers if the actual African-American-white wage differential is more than $4. 
B) randomly hire African-American and white workers if the actual African-American-white wage differential is less than $4. 
C) hire only African Americans if the actual African-American-white wage differential is less than $4. 
D) hire only African Americans if the actual African-American-white wage differential is more than $4. 
A) randomly hire African-American and white workers if the actual African-American-white wage differential is more than $4. 
B) randomly hire African-American and white workers if the actual African-American-white wage differential is less than $4. 
C) hire only African Americans if the actual African-American-white wage differential is less than $4. 
D) hire only African Americans if the actual African-American-white wage differential is more than $4.

Question 13

A curve showing the quintile distribution of a nation's income is called the Gini curve.

Accepted Answer

A) True 
 B)False

Question 14

The Lorenz curve portrays

Accepted Answer

A) the functional distribution of income. 
B) the ratio of labor to capitalist income. 
C) the personal distribution of income. 
D) income equality. 
A) the functional distribution of income. 
B) the ratio of labor to capitalist income. 
C) the personal distribution of income. 
D) income equality.

Question 15

Refer to the figure. The Gini ratio would be 0 for which curve?

Accepted Answer

A) a 
B) b 
C) c 
D) d 
A) a 
B) b 
C) c 
D) d

Question 16

Assumptions: (1)the labor force comprises 9 million men and 9 million women workers; (2)the economy has 3 occupations, X, Y, and Z, each having identical demand curves for labor; (3)male and female workers are homogeneous with respect to their labor-market capabilities; (4)women are discriminated against by being excluded from occupations X and Y and are confined to Z; and (5)aside from discrimination, the economy is competitive, and workers seek to maximize their earnings.Refer to the diagram and list of assumptions. If discrimination is ended, women

Accepted Answer

A) and men will both receive a wage rate of $4. 
B) and men will both receive a wage rate of $5. 
C) and men will both receive a wage rate of $6. 
D) will receive a wage rate of $4 and men will receive a wage rate of $5. 
A) and men will both receive a wage rate of $4. 
B) and men will both receive a wage rate of $5. 
C) and men will both receive a wage rate of $6. 
D) will receive a wage rate of $4 and men will receive a wage rate of $5.

Question 17

In 2017, the number of TANF recipients

Accepted Answer

A) was significantly lower than when the program began in 1996. 
B) constituted about 5 percent of the U.S. population. 
C) had risen significantly from the late 1990s. 
D) was significantly lower because of the Tax Cuts and Jobs Act. 
A) was significantly lower than when the program began in 1996. 
B) constituted about 5 percent of the U.S. population. 
C) had risen significantly from the late 1990s. 
D) was significantly lower because of the Tax Cuts and Jobs Act.

Question 18

Which of the following Gini ratios indicates the highest degree of income inequality?

Accepted Answer

A) 0.71 
B) 0.55 
C) 0.45 
D) 0.31 
A) 0.71 
B) 0.55 
C) 0.45 
D) 0.31

Question 19

List the various causes of income inequality in the United States.

Accepted Answer

The causes of income inequalit

Question 20

What have been the trends in income inequality since 1980?

Accepted Answer

Over the years, economic growth has rais

Exam 23: Income Inequality, Poverty, and Discrimination

The wages and salaries that people earn differ partly because of differences in

Since 1980 the distribution of income has

Which of the following is not one of the causes of the unequal distribution of income in the United States?

A Lorenz curve showing perfect equality in the distribution of income

One basic argument for redistributing income to achieve more equality rests on the idea of maximizing the society's total utility when there is diminishing marginal utility from income.

Assume that there is a supply and demand market for nonpreferred workers. If prejudice against these workers among employers decreases, then there will be a(n)

Housing subsidies for low-income households

What are some measurement issues involved in accurately measuring poverty?

Suppose that a prejudiced African-American employer has a discrimination coefficient of $5/hour. Suppose also that the market wage rate is $20/hour for African-American workers, and $18/hour for Hispanic workers. In this case, the employer will

Social Security payments are primarily made to assist

Suppose an employer is biased against African Americans. If his discrimination coefficient is $4, the employer will

A curve showing the quintile distribution of a nation's income is called the Gini curve.

The Lorenz curve portrays

Refer to the figure. The Gini ratio would be 0 for which curve?

In 2017, the number of TANF recipients

Which of the following Gini ratios indicates the highest degree of income inequality?

List the various causes of income inequality in the United States.

What have been the trends in income inequality since 1980?

Limits, Alternatives, and Choices

The Market System and the Circular Flow

Demand, Supply, and Market Equilibrium

Market Failures Caused by Externalities Asymmetric Information

Public Goods, Public Choice, and Government Failure

Elasticity

Utility Maximization

Behavioral Economics

Businesses and the Costs of Production

Pure Competition in the Short Run

Pure Competition in the Long Run

Pure Monopoly

Monopolistic Competition

Oligopoly and Strategic Behavior

Technology, RD, and Efficiency

The Demand for Resources

Wage Determination

Rent, Interest, and Profit

Natural Resource and Energy Economics

Public Finance: Expenditures and Taxes

Antitrust Policy and Regulation

Agriculture: Economics and Policy

Health Care

Immigration

International Trade

The Balance of Payments, Exchange Rates, and Trade Deficits

The Economics of Developing Countries

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