Question 1

Skills are costly to acquire.What forms do these costs take?
I9rnings while attending higher education

Accepted Answer

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

Question 2

Describe the characteristics of the typical lowest income household in the United States and the characteristics of the typical richest household in the United States.

Accepted Answer

The typical lowest income household has

Question 3

In the United States,since 1970 the share of income received by the richest 20 percent of households has ________ and the share received by the other 80 percent of households has ________.

Accepted Answer

A)  increased; increased 
B)  increased; decreased 
C)  decreased; increased 
D)  not changed; not changed 
E)  increased; not changed 
A)  increased; increased 
B)  increased; decreased 
C)  decreased; increased 
D)  not changed; not changed 
E)  increased; not changed

Question 4

"Over the past two decades,the distribution of income in the United States has become more equal." Is the previous statement correct or incorrect? Briefly explain your answer.

Accepted Answer

The statement is incorrect.In recent yea

Question 5

Of all the characteristics that lead to income inequality,the factor with the largest impact is

Accepted Answer

A)  race. 
B)  sex. 
C)  age. 
D)  education. 
E)  location. 
A)  race. 
B)  sex. 
C)  age. 
D)  education. 
E)  location.

Question 6

In the United States in 2004,the wealthiest 1 percent of households held approximately ________ percent of all wealth.

Accepted Answer

A)  1 
B)  13 
C)  27 
D)  34 
E)  88 
A)  1 
B)  13 
C)  27 
D)  34 
E)  88

Question 7

The table gives the distribution of income in Miseria.
-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 8

When government redistributes income,one dollar collected from a rich person translates into ________ received by a poor person.

Accepted Answer

A)  exactly one dollar 
B)  less than one dollar 
C)  more than one dollar 
D)  zero dollars 
E)  either exactly one dollar or, with some programs, more than one dollar 
A)  exactly one dollar 
B)  less than one dollar 
C)  more than one dollar 
D)  zero dollars 
E)  either exactly one dollar or, with some programs, more than one dollar

Question 9

The figure above shows the demand and supply curves for high-skilled (indicated by an "H" subscript) and low-skilled (indicated by an "L" subscript) workers.
-In the figure above,the equilibrium wage differential between high-skilled workers and low-skilled workers is

Accepted Answer

A)  zero. 
B)  $5.00 or less per hour. 
C)  between $5.01 and $10.00 per hour. 
D)  between $10.01 and $20.00 per hour. 
E)  more than $20.01 per hour. 
A)  zero. 
B)  $5.00 or less per hour. 
C)  between $5.01 and $10.00 per hour. 
D)  between $10.01 and $20.00 per hour. 
E)  more than $20.01 per hour.

Question 10

Measured annual income inequality overstates actual lifetime inequality because

Accepted Answer

A)  poverty levels vary across states. 
B)  homeless people are not always counted. 
C)  different households are in different stages in the life cycle. 
D)  people tend to overstate their incomes. 
E)  people differ in the amount of education they have attained. 
A)  poverty levels vary across states. 
B)  homeless people are not always counted. 
C)  different households are in different stages in the life cycle. 
D)  people tend to overstate their incomes. 
E)  people differ in the amount of education they have attained.

Question 11

The figure above shows Lorenz curves for a nation.
-Based on the figure above,if the poorest 20 percent group of households increased the share of the nation's income they receive,then

Accepted Answer

A)  there is a movement up along the Lorenz curve for income. 
B)  there is a movement down along the Lorenz curve for income. 
C)  the Lorenz curve for income shifts toward the line of equality. 
D)  the Lorenz curve for income shifts away from the line of equality. 
E)  Both answers A and C are correct. 
A)  there is a movement up along the Lorenz curve for income. 
B)  there is a movement down along the Lorenz curve for income. 
C)  the Lorenz curve for income shifts toward the line of equality. 
D)  the Lorenz curve for income shifts away from the line of equality. 
E)  Both answers A and C are correct.

Question 12

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 13

What is the difference between wealth and income?

Accepted Answer

Wealth is a stock of assets,that is,weal

Question 14

Looking at wage differentials between white women and white men in the United States since 2000,we see that the amount of the difference

Accepted Answer

A)  has not changed. 
B)  has increased. 
C)  has decreased. 
D)  at first increased but in the last decade it decreased. 
E)  at first decreased but in the last decade it increased. 
A)  has not changed. 
B)  has increased. 
C)  has decreased. 
D)  at first increased but in the last decade it decreased. 
E)  at first decreased but in the last decade it increased.

Question 15

The table gives the distribution of income in Miseria.
-What percent of income is earned by the poorest 60 percent of the population?

Accepted Answer

A)  25 percent 
B)  30 percent 
C)  55 percent 
D)  15 percent 
E)  More information is needed to answer the question. 
A)  25 percent 
B)  30 percent 
C)  55 percent 
D)  15 percent 
E)  More information is needed to answer the question.

Question 16

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 17

Workers who have invested in education and training

Accepted Answer

A)  are more likely to find jobs that are not rewarding. 
B)  have a higher value of marginal product. 
C)  have a more difficult time finding a job because their wage rate is higher. 
D)  have identical supply curves to otherwise similar workers who have not invested in education and training. 
E)  None of the above answers is correct. 
A)  are more likely to find jobs that are not rewarding. 
B)  have a higher value of marginal product. 
C)  have a more difficult time finding a job because their wage rate is higher. 
D)  have identical supply curves to otherwise similar workers who have not invested in education and training. 
E)  None of the above answers is correct.

Question 18

The figure above shows Lorenz curves for a nation.
-Based on the figure above,which of the following can cause a movement from point C to point D on the Lorenz curve for income?

Accepted Answer

A)  an increase in income for the bottom 60 percent of households 
B)  an increase in income for the bottom 80 percent of households 
C)  a decrease in income for the bottom 60 percent of households 
D)  a decrease in income for the bottom 80 percent of households 
E)  None of the above answers is correct. 
A)  an increase in income for the bottom 60 percent of households 
B)  an increase in income for the bottom 80 percent of households 
C)  a decrease in income for the bottom 60 percent of households 
D)  a decrease in income for the bottom 80 percent of households 
E)  None of the above answers is correct.

Question 19

The higher the cost of acquiring skills,the ________ are the high-skilled and low-skilled labor ________ curves.

Accepted Answer

A)  closer together; demand 
B)  farther apart; demand 
C)  closer together; supply 
D)  farther apart; supply 
A)  closer together; demand 
B)  farther apart; demand 
C)  closer together; supply 
D)  farther apart; supply

Question 20

-In the figure above,the nation with the least equal distribution of income is nation

Accepted Answer

A)  A. 
B)  B. 
C)  C. 
D)  The distribution of income is the same in all three nations because their Lorenz curves can be plotted on the same diagram. 
E)  It is impossible to determine with the information given. 
A)  A. 
B)  B. 
C)  C. 
D)  The distribution of income is the same in all three nations because their Lorenz curves can be plotted on the same diagram. 
E)  It is impossible to determine with the information given.

Skills are costly to acquire.What forms do these costs take? I9rnings while attending higher education

Describe the characteristics of the typical lowest income household in the United States and the characteristics of the typical richest household in the United States.

In the United States,since 1970 the share of income received by the richest 20 percent of households has and the share received by the other 80 percent of households has .

"Over the past two decades,the distribution of income in the United States has become more equal." Is the previous statement correct or incorrect? Briefly explain your answer.

Of all the characteristics that lead to income inequality,the factor with the largest impact is

In the United States in 2004,the wealthiest 1 percent of households held approximately ________ percent of all wealth.

The table gives the distribution of income in Miseria. -What percent of income is earned by the richest forty percent?

When government redistributes income,one dollar collected from a rich person translates into ________ received by a poor person.

The figure above shows the demand and supply curves for high-skilled (indicated by an "H" subscript) and low-skilled (indicated by an "L" subscript) workers. -In the figure above,the equilibrium wage differential between high-skilled workers and low-skilled workers is

Measured annual income inequality overstates actual lifetime inequality because

The figure above shows Lorenz curves for a nation. -Based on the figure above,if the poorest 20 percent group of households increased the share of the nation's income they receive,then

The the value of marginal product of skill,the .

What is the difference between wealth and income?

Looking at wage differentials between white women and white men in the United States since 2000,we see that the amount of the difference

The table gives the distribution of income in Miseria. -What percent of income is earned by the poorest 60 percent of the population?

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.

Workers who have invested in education and training

The figure above shows Lorenz curves for a nation. -Based on the figure above,which of the following can cause a movement from point C to point D on the Lorenz curve for income?

The higher the cost of acquiring skills,the are the high-skilled and low-skilled labor curves.

-In the figure above,the nation with the least equal distribution of income is nation

Getting Started

The Usand 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

Skills are costly to acquire.What forms do these costs take? I9rnings while attending higher education

Describe the characteristics of the typical lowest income household in the United States and the characteristics of the typical richest household in the United States.

In the United States,since 1970 the share of income received by the richest 20 percent of households has ________ and the share received by the other 80 percent of households has ________.

"Over the past two decades,the distribution of income in the United States has become more equal." Is the previous statement correct or incorrect? Briefly explain your answer.

Of all the characteristics that lead to income inequality,the factor with the largest impact is

In the United States in 2004,the wealthiest 1 percent of households held approximately ________ percent of all wealth.

The table gives the distribution of income in Miseria. -What percent of income is earned by the richest forty percent?

When government redistributes income,one dollar collected from a rich person translates into ________ received by a poor person.

The figure above shows the demand and supply curves for high-skilled (indicated by an "H" subscript) and low-skilled (indicated by an "L" subscript) workers. -In the figure above,the equilibrium wage differential between high-skilled workers and low-skilled workers is

Measured annual income inequality overstates actual lifetime inequality because

The figure above shows Lorenz curves for a nation. -Based on the figure above,if the poorest 20 percent group of households increased the share of the nation's income they receive,then

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

What is the difference between wealth and income?

Looking at wage differentials between white women and white men in the United States since 2000,we see that the amount of the difference

The table gives the distribution of income in Miseria. -What percent of income is earned by the poorest 60 percent of the population?

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.

Workers who have invested in education and training

The figure above shows Lorenz curves for a nation. -Based on the figure above,which of the following can cause a movement from point C to point D on the Lorenz curve for income?

The higher the cost of acquiring skills,the ________ are the high-skilled and low-skilled labor ________ curves.

-In the figure above,the nation with the least equal distribution of income is nation

Getting Started

The Usand 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 the share of income received by the richest 20 percent of households has and the share received by the other 80 percent of households has .

The the value of marginal product of skill,the .

The higher the cost of acquiring skills,the are the high-skilled and low-skilled labor curves.