Question 1

Compared to most other industrialized nations, the United States has greater income inequality.

Accepted Answer

A) True 
 B)False

Question 2

Discuss the criticisms leveled against the Aid to Families with Dependent Children program.

Accepted Answer

Aid to Families with Dependent Children

Question 3

Define the following terms and explain their importance to the study of economics. 
a. poverty line 
b. economic discrimination 
c. optimal inequality 
d. negative income tax

Accepted Answer

a. The poverty line is an amount of inco

Question 4

The poverty line is meant to distinguish

Accepted Answer

A) absolute poverty. 
B) relative poverty. 
C) absolute inequality. 
D) relative inequality. 
A) absolute poverty. 
B) relative poverty. 
C) absolute inequality. 
D) relative inequality.

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

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 7

Figure 21-1
 
In Figure 21-1, if the existing antipoverty program were replaced by a negative income tax, most economists believe that it would result in a move like which of the following?

Accepted Answer

A) C to F 
B) A to B 
C) D to E 
D) G to D 
A) C to F 
B) A to B 
C) D to E 
D) G to D

Question 8

The controversy over affirmative action illustrates the

Accepted Answer

A) trade-off between equality and efficiency. 
B) incentive problems created by transfer payments. 
C) incentive problems created by personal income taxes. 
D) trade-off between progressive and regressive taxes. 
A) trade-off between equality and efficiency. 
B) incentive problems created by transfer payments. 
C) incentive problems created by personal income taxes. 
D) trade-off between progressive and regressive taxes.

Question 9

In the United States, the incidence of poverty has declined since the 1970s.

Accepted Answer

A) True 
 B)False

Question 10

In 2017, an income of $125,000 would, roughly, make a family

Accepted Answer

A) richer than 40 percent of U.S. households but poorer than 35 percent. 
B) richer than 50 percent of U.S. households but poorer than 25 percent. 
C) richer than 85 percent of U.S. households but poorer than 8 percent. 
D) richer than 95 percent of U.S. households but poorer than 1 percent. 
A) richer than 40 percent of U.S. households but poorer than 35 percent. 
B) richer than 50 percent of U.S. households but poorer than 25 percent. 
C) richer than 85 percent of U.S. households but poorer than 8 percent. 
D) richer than 95 percent of U.S. households but poorer than 1 percent.

Question 11

Compensation wage differentials are

Accepted Answer

A) used to make pay equal across different groups of workers. 
B) driven primarily by differences in ability. 
C) driven primarily by differences in experience. 
D) used to offset the increased danger of some jobs. 
A) used to make pay equal across different groups of workers. 
B) driven primarily by differences in ability. 
C) driven primarily by differences in experience. 
D) used to offset the increased danger of some jobs.

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

Define discrimination. Why does discrimination occur, and what evidence exists that it does occur?

Accepted Answer

Economic discrimination occurs when equi

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

Poverty is defined in two ways: the absolute concept of poverty and the relative concept of poverty.

Accepted Answer

A) True 
 B)False

Question 16

Suppose a professor announces at the beginning of a course that he will give no failing grades because they are too damaging to self-esteem. How does such a policy affect equality and efficiency?

Accepted Answer

Equality increases since the spread of g

Question 17

The relative concept of poverty means that poverty will never be eliminated.

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

One benefit of a negative income tax is that it would increase work incentives.

Accepted Answer

A) True 
 B)False

Question 20

Discrimination exists when a man and a woman with the same levels of education earn different incomes.

Accepted Answer

A) True 
 B)False

Exam 20: Poverty, Inequality, and Discrimination

Compared to most other industrialized nations, the United States has greater income inequality.

Discuss the criticisms leveled against the Aid to Families with Dependent Children program.

Define the following terms and explain their importance to the study of economics. a. poverty line b. economic discrimination c. optimal inequality d. negative income tax

The poverty line is meant to distinguish

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

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

Figure 21-1 In Figure 21-1, if the existing antipoverty program were replaced by a negative income tax, most economists believe that it would result in a move like which of the following?

The controversy over affirmative action illustrates the

In the United States, the incidence of poverty has declined since the 1970s.

In 2017, an income of $125,000 would, roughly, make a family

Compensation wage differentials are

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

Define discrimination. Why does discrimination occur, and what evidence exists that it does occur?

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

Poverty is defined in two ways: the absolute concept of poverty and the relative concept of poverty.

Suppose a professor announces at the beginning of a course that he will give no failing grades because they are too damaging to self-esteem. How does such a policy affect equality and efficiency?

The relative concept of poverty means that poverty will never be eliminated.

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

One benefit of a negative income tax is that it would increase work incentives.

Discrimination exists when a man and a woman with the same levels of education earn different incomes.

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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