Question 1

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 2

Affirmative action laws require employers to hire specified numbers of minorities.

Accepted Answer

A) True 
 B)False

Question 3

Briefly and concisely define the following terms: 
a. statistical discrimination 
b. compensating wage differential 
c. affirmative action

Accepted Answer

a. Statistical discrimination is said to

Question 4

The "War on Poverty" was declared by President Ronald Reagan in 1982.

Accepted Answer

A) True 
 B)False

Question 5

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.

Question 6

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 7

The total amount of income in a society is independent of how income is distributed.

Accepted Answer

A) True 
 B)False

Question 8

Because of the book, The Other America, Michael Harrington was important in beginning the

Accepted Answer

A) Peace Corps. 
B) "War on Poverty." 
C) regulation of industry. 
D) Environmental Protection Agency. 
A) Peace Corps. 
B) "War on Poverty." 
C) regulation of industry. 
D) Environmental Protection Agency.

Question 9

Economists might be willing to accept a policy that adversely affected distribution of income if it

Accepted Answer

A) lessened income disparities. 
B) diminished labor productivity by a large amount. 
C) increased productivity by a large amount. 
D) were favorable to the rich. 
A) lessened income disparities. 
B) diminished labor productivity by a large amount. 
C) increased productivity by a large amount. 
D) were favorable to the rich.

Question 10

The U.S. distribution of income was more unequal in 1990 and 1980 than in 1970.

Accepted Answer

A) True 
 B)False

Question 11

Explain why greater equality is inevitably gained at the expense of efficiency.

Accepted Answer

Achieving greater equality requires redu

Question 12

Which of the following situations is the most common? Men and women

Accepted Answer

A) doing the same job and getting equal pay. 
B) doing the same job and getting unequal pay. 
C) doing very different kinds of work and consequently having different earnings. 
D) randomly distributed across occupations with average earnings about equal. 
A) doing the same job and getting equal pay. 
B) doing the same job and getting unequal pay. 
C) doing very different kinds of work and consequently having different earnings. 
D) randomly distributed across occupations with average earnings about equal.

Question 13

The poor are those who fall too far behind the average income. This refers to the ____ definition of poverty.

Accepted Answer

A) marginal 
B) absolute 
C) relative 
D) threshold 
A) marginal 
B) absolute 
C) relative 
D) threshold

Question 14

Compared to a negative income tax, the federal personal income tax is thought of as a way to promote greater equality. Why?

Accepted Answer

The NIT is largely thought of as an anti

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

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 17

A man may be preferred to a woman by an employer who will make a substantial investment in the training of the employee because

Accepted Answer

A) most employers are sexist and think that women belong in the home caring for children. 
B) as a group women tend to have a weaker attachment to the labor force than men. 
C) employers have observed that women are less productive than men on most jobs. 
D) employers are afraid women will disrupt the workplace by distracting the male employees. 
A) most employers are sexist and think that women belong in the home caring for children. 
B) as a group women tend to have a weaker attachment to the labor force than men. 
C) employers have observed that women are less productive than men on most jobs. 
D) employers are afraid women will disrupt the workplace by distracting the male employees.

Question 18

Affirmative action programs are intended to combat

Accepted Answer

A) poverty. 
B) economic inequality. 
C) discriminatory practices by employers. 
D) "comparable worth" systems of compensation. 
A) poverty. 
B) economic inequality. 
C) discriminatory practices by employers. 
D) "comparable worth" systems of compensation.

Question 19

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 20

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

Accepted Answer

A) True 
 B)False

Exam 20: Poverty, Inequality, and Discrimination

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

Affirmative action laws require employers to hire specified numbers of minorities.

Briefly and concisely define the following terms: a. statistical discrimination b. compensating wage differential c. affirmative action

The "War on Poverty" was declared by President Ronald Reagan in 1982.

The extent of discrimination is

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

The total amount of income in a society is independent of how income is distributed.

Because of the book, The Other America, Michael Harrington was important in beginning the

Economists might be willing to accept a policy that adversely affected distribution of income if it

The U.S. distribution of income was more unequal in 1990 and 1980 than in 1970.

Explain why greater equality is inevitably gained at the expense of efficiency.

Which of the following situations is the most common? Men and women

The poor are those who fall too far behind the average income. This refers to the ____ definition of poverty.

Compared to a negative income tax, the federal personal income tax is thought of as a way to promote greater equality. Why?

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

Risk taking

A man may be preferred to a woman by an employer who will make a substantial investment in the training of the employee because

Affirmative action programs are intended to combat

Under current federal antipoverty programs,

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

What Is Economics

The Economy: 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

Externalities, Externaliteis, the Environment, and Natural Resources

Taxation and Resource Allocation

Pricing the Factors of Production

Labor and Entrepreneurship: the Human Inputs

International Trade and Comparative Advantage

Contemporary Issues in the Us Economy

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