Question 1

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 2

"If the distribution of income was equal,the Lorenz curve would be a straight,45° line." Is the previous statement correct or incorrect?

Accepted Answer

The statem

Question 3

-The above table shows the distribution of income in two imaginary countries,Alpha and Beta.
a.What does the table tell you about the second 20 percent group in each country?
b.Calculate the cumulative percentage for both countries.
c.Interpret the cumulative percentage for the third 20 percent group in both countries.

Accepted Answer

a.The second 20 percent group earns 10 p

Question 4

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,if the cost of acquiring the skill decreased,then the

Accepted Answer

A)  SL curve shifts leftward. 
B)  SH curve shifts leftward. 
C)  SH curve shifts rightward. 
D)  DH curve shifts leftward. 
E)  DL curve shifts leftward. 
A)  SL curve shifts leftward. 
B)  SH curve shifts leftward. 
C)  SH curve shifts rightward. 
D)  DH curve shifts leftward. 
E)  DL curve shifts leftward.

Question 5

-In the figure above,the nation with the most 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.

Question 6

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 7

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

Accepted Answer

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

Question 8

Which of the following is (are)a difference between high-skilled workers and low-skilled workers?
i.High-skilled workers have a higher value of marginal product.
ii.High-skilled workers have incurred lower opportunity costs to acquire their skills.
iii.The demand for high-skilled workers exceeds that for low-skilled workers.

Accepted Answer

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

Question 9

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 10

How is human capital acquired?

Accepted Answer

Human capital can be

Question 11

The vertical distance between the supply curves for neurosurgeons and the supply curve for fast-food servers

Accepted Answer

A)  represents the difference in the demand for these two occupations. 
B)  is the compensation that neurosurgeons require for the cost of acquiring this skill. 
C)  is the difference in the value of marginal product of the two professions. 
D)  is the difference in on-the-job training. 
E)  equals the difference in the equilibrium wages paid these two professions. 
A)  represents the difference in the demand for these two occupations. 
B)  is the compensation that neurosurgeons require for the cost of acquiring this skill. 
C)  is the difference in the value of marginal product of the two professions. 
D)  is the difference in on-the-job training. 
E)  equals the difference in the equilibrium wages paid these two professions.

Question 12

Passing the TANF welfare program has

Accepted Answer

A)  has made welfare programs more open-ended entitlement programs. 
B)  limited assistance to five years. 
C)  eliminated work and public service requirements. 
D)  hurt economic incentives to work. 
E)  made it into a negative income tax program. 
A)  has made welfare programs more open-ended entitlement programs. 
B)  limited assistance to five years. 
C)  eliminated work and public service requirements. 
D)  hurt economic incentives to work. 
E)  made it into a negative income tax program.

Question 13

In 2010,the poverty rate in the United States level was approximately ________ percent.

Accepted Answer

A)  3 
B)  15 
C)  32 
D)  20 
E)  26 
A)  3 
B)  15 
C)  32 
D)  20 
E)  26

Question 14

A ________ tax is one that taxes income at an average rate that decreases with the level of income.

Accepted Answer

A)  regressive 
B)  progressive 
C)  flat 
D)  social security 
E)  proportional 
A)  regressive 
B)  progressive 
C)  flat 
D)  social security 
E)  proportional

Question 15

________ is a component of welfare programs.

Accepted Answer

A)  A progressive income tax 
B)  Unemployment compensation 
C)  Medicaid 
D)  Social Security payroll taxes 
E)  The negative income tax 
A)  A progressive income tax 
B)  Unemployment compensation 
C)  Medicaid 
D)  Social Security payroll taxes 
E)  The negative income tax

Question 16

What are three programs that redistribute income in the United States by making direct payments to people? Who benefits from each program?

Accepted Answer

Three programs are Social Security,unemp

Question 17

-The above table shows the distribution of income in two countries,Alpha and Beta.Based on these distributions of income,

Accepted Answer

A)  Country Beta has more equal income distribution than does Country Alpha. 
B)  both countries have equal distributions because 100 percent of the incomes are accounted for. 
C)  the Lorenz Curve for country Beta is closer to the line of equality. 
D)  Country Alpha has a more equal distribution of income than does Country Beta. 
E)  It is impossible to answer the question without more information. 
A)  Country Beta has more equal income distribution than does Country Alpha. 
B)  both countries have equal distributions because 100 percent of the incomes are accounted for. 
C)  the Lorenz Curve for country Beta is closer to the line of equality. 
D)  Country Alpha has a more equal distribution of income than does Country Beta. 
E)  It is impossible to answer the question without more information.

Question 18

Inequality in the distribution of income and wealth is increased by

Accepted Answer

A)  the point that the children of the poorest find it difficult to get into college. 
B)  saving to redistribute an uneven income over the life cycle. 
C)  marrying outside one's own socioeconomic class. 
D)  donating money to charities. 
E)  the U.S. income tax. 
A)  the point that the children of the poorest find it difficult to get into college. 
B)  saving to redistribute an uneven income over the life cycle. 
C)  marrying outside one's own socioeconomic class. 
D)  donating money to charities. 
E)  the U.S. income tax.

Question 19

In the United States,the

Accepted Answer

A)  distribution of income has become more equal since 1970. 
B)  Lorenz curve for income and the Lorenz curve for wealth are equally close to the line of equality. 
C)  Lorenz curve for income is closer to the line of equality than is the Lorenz curve for wealth. 
D)  Lorenz curve for wealth is closer to the line of equality than is the Lorenz curve for income. 
E)  None of the above answers is correct. 
A)  distribution of income has become more equal since 1970. 
B)  Lorenz curve for income and the Lorenz curve for wealth are equally close to the line of equality. 
C)  Lorenz curve for income is closer to the line of equality than is the Lorenz curve for wealth. 
D)  Lorenz curve for wealth is closer to the line of equality than is the Lorenz curve for income. 
E)  None of the above answers is correct.

Question 20

-In the figure above,the nation with the highest average income is nation

Accepted Answer

A)  A. 
B)  B. 
C)  C. 
D)  The average 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 average 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.

What economic effect works to eliminate sex and race discrimination?

"If the distribution of income was equal,the Lorenz curve would be a straight,45° line." Is the previous statement correct or incorrect?

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,if the cost of acquiring the skill decreased,then the

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

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

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

The cost of acquiring a skill accounts for why the

How is human capital acquired?

The vertical distance between the supply curves for neurosurgeons and the supply curve for fast-food servers

Passing the TANF welfare program has

In 2010,the poverty rate in the United States level was approximately ________ percent.

A ________ tax is one that taxes income at an average rate that decreases with the level of income.

________ is a component of welfare programs.

What are three programs that redistribute income in the United States by making direct payments to people? Who benefits from each program?

-The above table shows the distribution of income in two countries,Alpha and Beta.Based on these distributions of income,

Inequality in the distribution of income and wealth is increased by

In the United States,the

-In the figure above,the nation with the highest average 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

What economic effect works to eliminate sex and race discrimination?

"If the distribution of income was equal,the Lorenz curve would be a straight,45° line." Is the previous statement correct or incorrect?

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,if the cost of acquiring the skill decreased,then the

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

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

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

The cost of acquiring a skill accounts for why the

How is human capital acquired?

The vertical distance between the supply curves for neurosurgeons and the supply curve for fast-food servers

Passing the TANF welfare program has

In 2010,the poverty rate in the United States level was approximately ________ percent.

A ________ tax is one that taxes income at an average rate that decreases with the level of income.

________ is a component of welfare programs.

What are three programs that redistribute income in the United States by making direct payments to people? Who benefits from each program?

-The above table shows the distribution of income in two countries,Alpha and Beta.Based on these distributions of income,

Inequality in the distribution of income and wealth is increased by

In the United States,the

-In the figure above,the nation with the highest average 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 money income received by the richest 20 percent of households has and the share of income received by the lowest 20 percent of households has .