Question 1

If society chose to maximize total utility rather than minimum utility,

Accepted Answer

A)  society would achieve perfect income equality. 
B)  society would achieve the maximin objective. 
C)  its justice would be more utilitarian than Rawlsian. 
D)  its justice would be more Rawlsian than utilitarian. 
A)  society would achieve perfect income equality. 
B)  society would achieve the maximin objective. 
C)  its justice would be more utilitarian than Rawlsian. 
D)  its justice would be more Rawlsian than utilitarian.

Question 2

Liberalism aims to raise the welfare of the worst-off person in society.This rule is called the

Accepted Answer

A)  minimax regret criterion. 
B)  conservative approach. 
C)  Nozick criterion. 
D)  maximin criterion. 
A)  minimax regret criterion. 
B)  conservative approach. 
C)  Nozick criterion. 
D)  maximin criterion.

Question 3

The income distribution in the United States shows that the income share of the top fifth of all families is

Accepted Answer

A)  over 50 percent. 
B)  around 25 percent. 
C)  more than 10 times the income of the bottom fifth. 
D)  not much different from the income of the top 5 percent. 
A)  over 50 percent. 
B)  around 25 percent. 
C)  more than 10 times the income of the bottom fifth. 
D)  not much different from the income of the top 5 percent.

Question 4

Table 20-5
   
*A Gini coefficient is a commonly used measure of income inequality, with values between 0 and 1 (0 corresponds to perfect equality whereby everyone has exactly the same income, and 1 corresponds to perfect inequality where one person has all the income, while everyone else has zero income).
Source: The World Bank
-Refer to Table 20-5.Which country has the most unequal income distribution?

Accepted Answer

A)  Latvia 
B)  Italy 
C)  France 
D)  Sweden 
A)  Latvia 
B)  Italy 
C)  France 
D)  Sweden

Question 5

According to libertarians,the government should redistribute income from rich individuals to poor individuals to achieve a more equal distribution of income.

Accepted Answer

A) True 
 B)False

Question 6

The economic life cycle describes how young people usually have higher savings rates than middle-aged people.

Accepted Answer

A) True 
 B)False

Question 7

Table 20-5
   
*A Gini coefficient is a commonly used measure of income inequality, with values between 0 and 1 (0 corresponds to perfect equality whereby everyone has exactly the same income, and 1 corresponds to perfect inequality where one person has all the income, while everyone else has zero income).
Source: The World Bank
-Refer to Table 20-5.Which country has the most equal income distribution?

Accepted Answer

A)  Latvia 
B)  Italy 
C)  France 
D)  Sweden 
A)  Latvia 
B)  Italy 
C)  France 
D)  Sweden

Question 8

Unemployment insurance benefits is a type of

Accepted Answer

A)  in-kind transfer. 
B)  negative income tax payment. 
C)  property income. 
D)  welfare payment. 
A)  in-kind transfer. 
B)  negative income tax payment. 
C)  property income. 
D)  welfare payment.

Question 9

Suppose society consists of four individuals: Andy,Bill,Carl,and David.Andy has $20,000 of income,Bill has $40,000 of income,Carl has $60,000 of income,and David has $80,000 of income.A utilitarian would argue that

Accepted Answer

A)  taking $1 from Bill and giving it to Carl would increase society's total utility. 
B)  taking $1 from Carl and giving it to Andy would increase society's total utility. 
C)  taking $1 from Carl and giving it to David would increase society's total utility. 
D)  taking $1 from Bill and giving it to David would increase society's total utility. 
A)  taking $1 from Bill and giving it to Carl would increase society's total utility. 
B)  taking $1 from Carl and giving it to Andy would increase society's total utility. 
C)  taking $1 from Carl and giving it to David would increase society's total utility. 
D)  taking $1 from Bill and giving it to David would increase society's total utility.

Question 10

Suppose that Jamal is moving to a state where personal incomes are distributed randomly.If Jamal believes in liberalism,he would prefer

Accepted Answer

A)  an income distribution that is relatively equal. 
B)  that everyone has the same work opportunities and market-determined wage rates. 
C)  that private property be transformed to government property to safeguard people's incomes. 
D)  less economic assistance to the poor because it distorts the price system. 
A)  an income distribution that is relatively equal. 
B)  that everyone has the same work opportunities and market-determined wage rates. 
C)  that private property be transformed to government property to safeguard people's incomes. 
D)  less economic assistance to the poor because it distorts the price system.

Question 11

About four out of five millionaires in the United States earned their money rather than inherited it.

Accepted Answer

A) True 
 B)False

Question 12

The poverty line in the country of Inequalia is $7,800.The distribution of income for Inequalia is as follows:  
The poverty rate in Inequalia is

Accepted Answer

A)  7.8 percent. 
B)  between 10 percent and 25 percent. 
C)  between 25 percent and 50 percent. 
D)  39 percent. 
A)  7.8 percent. 
B)  between 10 percent and 25 percent. 
C)  between 25 percent and 50 percent. 
D)  39 percent.

Question 13

In general,which of the following would libertarians argue is more important than equal outcomes?

Accepted Answer

A)  equal opportunities 
B)  equal incomes 
C)  providing a social safety net 
D)  offering the opportunity to purchase social insurance 
A)  equal opportunities 
B)  equal incomes 
C)  providing a social safety net 
D)  offering the opportunity to purchase social insurance

Question 14

Which of the following explains the rise in income inequality in the United States from 1970 to 2008?

Accepted Answer

A)  An increase in minimum wages. 
B)  An increase in the demand for skilled labor. 
C)  An increase in the demand for unskilled labor. 
D)  Reduced international trade with low-wage countries. 
A)  An increase in minimum wages. 
B)  An increase in the demand for skilled labor. 
C)  An increase in the demand for unskilled labor. 
D)  Reduced international trade with low-wage countries.

If society chose to maximize total utility rather than minimum utility,

Liberalism aims to raise the welfare of the worst-off person in society.This rule is called the

The income distribution in the United States shows that the income share of the top fifth of all families is

According to libertarians,the government should redistribute income from rich individuals to poor individuals to achieve a more equal distribution of income.

The economic life cycle describes how young people usually have higher savings rates than middle-aged people.

Unemployment insurance benefits is a type of

Suppose society consists of four individuals: Andy,Bill,Carl,and David.Andy has $20,000 of income,Bill has $40,000 of income,Carl has $60,000 of income,and David has $80,000 of income.A utilitarian would argue that

Suppose that Jamal is moving to a state where personal incomes are distributed randomly.If Jamal believes in liberalism,he would prefer

About four out of five millionaires in the United States earned their money rather than inherited it.

The poverty line in the country of Inequalia is $7,800.The distribution of income for Inequalia is as follows: The poverty rate in Inequalia is

In general,which of the following would libertarians argue is more important than equal outcomes?

Which of the following explains the rise in income inequality in the United States from 1970 to 2008?

Ten Principles of Economics.

Thinking Like an Economist.

Interdependence and the Gains from Trade.

The Market Forces of Supply and Demand.

Elasticity and Its Application

Supply, Demand, And Government Policies.

Consumers, Producers, and the Efficiency of Markets.

Application: The Costs of Taxation.

Application: International Trade.

Externalities.

Public Goods and Common Resources.

The Design of the Tax System.

The Costs of Production.

Firms in Competitive Markets.

Monopoly.

Monopolistic Competition.

Oligopoly.

The Market For the Factors of Production.

Earnings and Discrimination.

The Theory of Consumer Choice.

Frontiers in Microeconomics.

Filters

Exam 20: Income Inequality and Poverty.

If society chose to maximize total utility rather than minimum utility,

Liberalism aims to raise the welfare of the worst-off person in society.This rule is called the

The income distribution in the United States shows that the income share of the top fifth of all families is

According to libertarians,the government should redistribute income from rich individuals to poor individuals to achieve a more equal distribution of income.

The economic life cycle describes how young people usually have higher savings rates than middle-aged people.

Unemployment insurance benefits is a type of

Suppose society consists of four individuals: Andy,Bill,Carl,and David.Andy has $20,000 of income,Bill has $40,000 of income,Carl has $60,000 of income,and David has $80,000 of income.A utilitarian would argue that

Suppose that Jamal is moving to a state where personal incomes are distributed randomly.If Jamal believes in liberalism,he would prefer

About four out of five millionaires in the United States earned their money rather than inherited it.

The poverty line in the country of Inequalia is $7,800.The distribution of income for Inequalia is as follows: The poverty rate in Inequalia is

In general,which of the following would libertarians argue is more important than equal outcomes?

Which of the following explains the rise in income inequality in the United States from 1970 to 2008?

Ten Principles of Economics.

Thinking Like an Economist.

Interdependence and the Gains from Trade.

The Market Forces of Supply and Demand.

Elasticity and Its Application

Supply, Demand, And Government Policies.

Consumers, Producers, and the Efficiency of Markets.

Application: The Costs of Taxation.

Application: International Trade.

Externalities.

Public Goods and Common Resources.

The Design of the Tax System.

The Costs of Production.

Firms in Competitive Markets.

Monopoly.

Monopolistic Competition.

Oligopoly.

The Market For the Factors of Production.

Earnings and Discrimination.

The Theory of Consumer Choice.

Frontiers in Microeconomics.

Filters