Question 1

Looking at wage differentials between white men and other groups in the United States,we see that

Accepted Answer

A)  white men and black men earn about the same but women of all races earn less. 
B)  white men earn more than black men but white women earn less than black men. 
C)  black men earn less than white men and less than white women. 
D)  white men and white women earn about the same but minorities earn less. 
E)  black men and men of Hispanic origin earn about the same amount and both groups of men are paid more than black women and women of Hispanic origin. 
A)  white men and black men earn about the same but women of all races earn less. 
B)  white men earn more than black men but white women earn less than black men. 
C)  black men earn less than white men and less than white women. 
D)  white men and white women earn about the same but minorities earn less. 
E)  black men and men of Hispanic origin earn about the same amount and both groups of men are paid more than black women and women of Hispanic origin.

Question 2

What is "human capital"? How is it important in the determination of a worker's wage rate?

Accepted Answer

Human capital is the skill,education,and

Question 3

What economic effect works to eliminate sex and race discrimination?

Accepted Answer

A)  Firms hire only the preferred races and sex. 
B)  Lower paid races and sexes give up working and drop out of the labor supply. 
C)  Customers who discriminate pay higher prices to buy from preferred races and sex. 
D)  The value of marginal product of the less preferred races and sexes eventually increases. 
E)  Lower paid races and sexes decrease their demand for goods and services. 
A)  Firms hire only the preferred races and sex. 
B)  Lower paid races and sexes give up working and drop out of the labor supply. 
C)  Customers who discriminate pay higher prices to buy from preferred races and sex. 
D)  The value of marginal product of the less preferred races and sexes eventually increases. 
E)  Lower paid races and sexes decrease their demand for goods and services.

Question 4

In the United States since 1970 income has become ________ equally distributed and since the 1970s economic mobility among income groups has ________.

Accepted Answer

A)  more; increased 
B)  more; decreased 
C)  less; increased 
D)  less; decreased 
E)  None of the above answers is correct because economic mobility among income groups cannot be measured. 
A)  more; increased 
B)  more; decreased 
C)  less; increased 
D)  less; decreased 
E)  None of the above answers is correct because economic mobility among income groups cannot be measured.

Question 5

What determines the position of the supply curve of high-skilled workers relative to that of low-skilled workers?

Accepted Answer

A)  the cost of acquiring the skill 
B)  the difference in the demand curves for the two groups 
C)  Bureau of Labor Standard guidelines 
D)  the difference in the value of the marginal products 
E)  None of the above answers is correct. 
A)  the cost of acquiring the skill 
B)  the difference in the demand curves for the two groups 
C)  Bureau of Labor Standard guidelines 
D)  the difference in the value of the marginal products 
E)  None of the above answers is correct.

Question 6

The cost of acquiring a skill accounts for why the

Accepted Answer

A)  demand for high-skilled workers is different from the demand for low-skilled workers. 
B)  supply of high-skilled workers is different from the supply of low-skilled workers. 
C)  demand for high-skilled workers is different from the supply of high-skilled workers. 
D)  demand for high-skilled workers is different from the supply of low-skilled workers. 
E)  supply curves of high-skilled and low-skilled workers cross. 
A)  demand for high-skilled workers is different from the demand for low-skilled workers. 
B)  supply of high-skilled workers is different from the supply of low-skilled workers. 
C)  demand for high-skilled workers is different from the supply of high-skilled workers. 
D)  demand for high-skilled workers is different from the supply of low-skilled workers. 
E)  supply curves of high-skilled and low-skilled workers cross.

Question 7

$$\begin{array} { l c c } 
{ \begin{array} { c } 
\text { Household } \
\text { percent age }
\end{array} } & \begin{array} { c } 
\text { Percent of } \
\text { income } \
\text { Alpha }
\end{array} & \begin{array} { c } 
\text { Percent of } \
\text { income } \
\text { Beta }
\end{array} \
\hline \text { Lowest 20 percent } & 5 & 3 \
\text { Second 20 percent } & 10 & 6 \
\text { Third 20 percent } & 20 & 12 \
\text { Fourth 20 percent } & 30 & 24 \
\text { Highest 20 percent } & 35 & 55 \
\hline
\end{array}$$
-The above table shows the distribution of income in two imaginary countries,Alpha and Beta.
a.In the figure below,draw the Lorenz curves for Alpha and Beta.
   
b.Compare the distribution of income in Alpha with that in Beta.Which distribution is more unequal?
c.What would be the distribution of income in a country with perfect income equality?

Accepted Answer

@#IMG-DLM& 
a.The Lorenz curves are above.
b.The d

Question 8

In the United States,the poorest 20 percent of households receive about ________ percent of total money income while the richest 20 percent receive about ________ percent of total money income.

Accepted Answer

A)  3; 50 
B)  8; 71 
C)  12.; 32 
D)  13; 68 
E)  20; 20 
A)  3; 50 
B)  8; 71 
C)  12.; 32 
D)  13; 68 
E)  20; 20

Question 9

Suppose the government implements a negative income tax with a minimum guaranteed income of $20,000 and a tax rate of 30 percent on market income.
a.What amount of tax would be paid by a household with no market income?
b.What amount of tax would be paid by a household earning $100,000 of market income?

Accepted Answer

a.A household with no market income woul

Question 10

Which of the following is correct? On the average,
i.the wage differential between white males and white females has narrowed since 2000.
ii.black females are paid more than black males.
iii.Hispanic males are paid more than black males.

Accepted Answer

A)  i only 
B)  ii only 
C)  ii and iii 
D)  i and iii 
E)  i, ii, and iii 
A)  i only 
B)  ii only 
C)  ii and iii 
D)  i and iii 
E)  i, ii, and iii

Question 11

Which of the following statements about poverty is (are)correct?
i.Blacks and Hispanics have higher poverty rates than whites.
ii.Over the last 40 years,poverty rates for all groups have generally increased.
iii.Most household spells of poverty last well beyond 9 months.

Accepted Answer

A)  i only 
B)  ii only 
C)  iii only 
D)  ii and iii 
E)  i, ii, and iii 
A)  i only 
B)  ii only 
C)  iii only 
D)  ii and iii 
E)  i, ii, and iii

Question 12

$$\begin{array} { | c | c | } 
\hline \text { Group } & \begin{array} { c } 
\text { Percent of } \
\text { income }
\end{array} \
\hline \text { Poorest } 20 \% & 5 \
\hline \text { Second poorest } 20 \% & 10 \
\hline \text { Middle } 20 \% & 15 \
\hline \text { Second richest } 20 \% & 25 \
\hline \text { Richest } 20 \% & 45 \
\hline
\end{array}$$ 
The table gives the distribution of income in Mise
-What percent of income is earned by the richest forty percent?

Accepted Answer

A)  5 percent 
B)  20 percent 
C)  70 percent 
D)  55 percent 
E)  More information is needed to answer the question. 
A)  5 percent 
B)  20 percent 
C)  70 percent 
D)  55 percent 
E)  More information is needed to answer the question.

Question 13

Which type of household has the lowest poverty rate?

Accepted Answer

A)  black 
B)  Hispanic 
C)  white 
D)  White and Hispanic are almost tied. 
E)  White and black are almost tied. 
A)  black 
B)  Hispanic 
C)  white 
D)  White and Hispanic are almost tied. 
E)  White and black are almost tied.

Question 14

The factor that leads to the largest difference in households' incomes is

Accepted Answer

A)  race. 
B)  education. 
C)  gender. 
D)  size of household. 
E)  location of household. 
A)  race. 
B)  education. 
C)  gender. 
D)  size of household. 
E)  location of household.

Question 15

-In the United States,it is the case that

Accepted Answer

A)  both income and wealth are equally distributed. 
B)  wealth is equally distributed but income is distributed unequally. 
C)  income is equally distributed but wealth is distributed unequally. 
D)  both income and wealth are unequally distributed and wealth is distributed more unequally than is income. 
E)  both income and wealth are unequally distributed and income is distributed more unequally than is wealth. 
A)  both income and wealth are equally distributed. 
B)  wealth is equally distributed but income is distributed unequally. 
C)  income is equally distributed but wealth is distributed unequally. 
D)  both income and wealth are unequally distributed and wealth is distributed more unequally than is income. 
E)  both income and wealth are unequally distributed and income is distributed more unequally than is wealth.

Question 16

A ________ has a constant tax rate regardless of the level of income.

Accepted Answer

A)  regressive tax 
B)  progressive tax 
C)  state tax 
D)  proportional tax 
E)  subsidy tax 
A)  regressive tax 
B)  progressive tax 
C)  state tax 
D)  proportional tax 
E)  subsidy tax

Question 17

A negative income tax is a system that,in part,

Accepted Answer

A)  taxes lower-income households at a higher rate. 
B)  taxes higher-income households at a higher rate. 
C)  guarantees a minimum level of income for all households. 
D)  gives money from taxes paid by the poor to wealthy investors. 
E)  guarantees a minimum level of taxation for all households. 
A)  taxes lower-income households at a higher rate. 
B)  taxes higher-income households at a higher rate. 
C)  guarantees a minimum level of income for all households. 
D)  gives money from taxes paid by the poor to wealthy investors. 
E)  guarantees a minimum level of taxation for all households.

Question 18

The ________ the value of marginal product of skill,the ________.

Accepted Answer

A)  smaller; larger is the wage differential between low-skilled workers and high-skilled workers 
B)  larger; more elastic the supply curve of labor 
C)  larger; larger is the wage differential between low-skilled workers and high-skilled workers 
D)  smaller; less elastic the supply curve of labor 
E)  smaller; larger is the cost of acquiring the skill 
A)  smaller; larger is the wage differential between low-skilled workers and high-skilled workers 
B)  larger; more elastic the supply curve of labor 
C)  larger; larger is the wage differential between low-skilled workers and high-skilled workers 
D)  smaller; less elastic the supply curve of labor 
E)  smaller; larger is the cost of acquiring the skill

Question 19

What is a Lorenz curve?

Accepted Answer

A Lorenz curve is a curve that graphs th

Question 20

What are the three ways that the government redistributes income in the United States? Briefly discuss each.

Accepted Answer

The government redistributes income usin

Looking at wage differentials between white men and other groups in the United States,we see that

What is "human capital"? How is it important in the determination of a worker's wage rate?

What economic effect works to eliminate sex and race discrimination?

In the United States since 1970 income has become equally distributed and since the 1970s economic mobility among income groups has .

What determines the position of the supply curve of high-skilled workers relative to that of low-skilled workers?

The cost of acquiring a skill accounts for why the

In the United States,the poorest 20 percent of households receive about percent of total money income while the richest 20 percent receive about percent of total money income.

Which of the following is correct? On the average, i.the wage differential between white males and white females has narrowed since 2000. ii.black females are paid more than black males. iii.Hispanic males are paid more than black males.

Which of the following statements about poverty is (are)correct? i.Blacks and Hispanics have higher poverty rates than whites. ii.Over the last 40 years,poverty rates for all groups have generally increased. iii.Most household spells of poverty last well beyond 9 months.

Group Percent of income Poorest 20\% 5 Second poorest 20\% 10 Middle 20\% 15 Second richest 20\% 25 Richest 20\% 45 The table gives the distribution of income in Mise -What percent of income is earned by the richest forty percent?

Which type of household has the lowest poverty rate?

The factor that leads to the largest difference in households' incomes is

-In the United States,it is the case that

A ________ has a constant tax rate regardless of the level of income.

A negative income tax is a system that,in part,

The the value of marginal product of skill,the .

What is a Lorenz curve?

What are the three ways that the government redistributes income in the United States? Briefly discuss each.

Getting Started

The U.S.and Global Economies

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Taxes

Global Markets in Action

Externalities

Public Goods and Common Resources

Markets with Private Information

Consumer Choice and Demand

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Markets for Factors of Production

Filters

Exam 20: Economic Inequality

Looking at wage differentials between white men and other groups in the United States,we see that

What is "human capital"? How is it important in the determination of a worker's wage rate?

What economic effect works to eliminate sex and race discrimination?

In the United States since 1970 income has become ________ equally distributed and since the 1970s economic mobility among income groups has ________.

What determines the position of the supply curve of high-skilled workers relative to that of low-skilled workers?

The cost of acquiring a skill accounts for why the

In the United States,the poorest 20 percent of households receive about ________ percent of total money income while the richest 20 percent receive about ________ percent of total money income.

Which of the following is correct? On the average, i.the wage differential between white males and white females has narrowed since 2000. ii.black females are paid more than black males. iii.Hispanic males are paid more than black males.

Which of the following statements about poverty is (are)correct? i.Blacks and Hispanics have higher poverty rates than whites. ii.Over the last 40 years,poverty rates for all groups have generally increased. iii.Most household spells of poverty last well beyond 9 months.

Group Percent of income Poorest 20\% 5 Second poorest 20\% 10 Middle 20\% 15 Second richest 20\% 25 Richest 20\% 45 The table gives the distribution of income in Mise -What percent of income is earned by the richest forty percent?

Which type of household has the lowest poverty rate?

The factor that leads to the largest difference in households' incomes is

-In the United States,it is the case that

A ________ has a constant tax rate regardless of the level of income.

A negative income tax is a system that,in part,

The ________ the value of marginal product of skill,the ________.

What is a Lorenz curve?

What are the three ways that the government redistributes income in the United States? Briefly discuss each.

Getting Started

The U.S.and Global Economies

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Taxes

Global Markets in Action

Externalities

Public Goods and Common Resources

Markets with Private Information

Consumer Choice and Demand

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Markets for Factors of Production

Filters

In the United States since 1970 income has become equally distributed and since the 1970s economic mobility among income groups has .

In the United States,the poorest 20 percent of households receive about percent of total money income while the richest 20 percent receive about percent of total money income.

The the value of marginal product of skill,the .