Question 1

What is a Lorenz curve?

Accepted Answer

A Lorenz curve is a curve that graphs th

Question 2

In the United States,the federal and state income tax system is

Accepted Answer

A)  progressive. 
B)  proportional. 
C)  regressive. 
D)  a flat-rate tax. 
E)  None of the above answers is correct. 
A)  progressive. 
B)  proportional. 
C)  regressive. 
D)  a flat-rate tax. 
E)  None of the above answers is correct.

Question 3

Social Security and unemployment compensation

Accepted Answer

A)  are paid only to the poorest households. 
B)  are both funded by income taxes. 
C)  are distributed by individual states. 
D)  both redistribute income. 
E)  make the distribution of income less equal. 
A)  are paid only to the poorest households. 
B)  are both funded by income taxes. 
C)  are distributed by individual states. 
D)  both redistribute income. 
E)  make the distribution of income less equal.

Question 4

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

Accepted Answer

A)  25 percent 
B)  30 percent 
C)  55 percent 
D)  85 percent 
E)  More information is needed to answer the question. 
A)  25 percent 
B)  30 percent 
C)  55 percent 
D)  85 percent 
E)  More information is needed to answer the question.

Question 5

-The table above gives the average income received by each 20 percent group of households.Complete the table by finding the percentage of income earned by each group and the cumulative percentage of income.Label the figure below and then plot the Lorenz curve.

Accepted Answer

@#IMG-DLM& 
The completed tabl

Question 6

Looking at the Lorenz curves for income distribution in all the world's nations,we would find that

Accepted Answer

A)  some nations have Lorenz curves that lie above the 45° line, other nations have Lorenz curves that lie below the 45° line, but no nation has a Lorenz curve that lie on the 45° line. 
B)  all nations have Lorenz curves that lie above the 45° line. 
C)  all nations have Lorenz curves that lie below the 45° line. 
D)  some nations have Lorenz curves that lie above the 45° line, other nations have Lorenz curves that lie below the 45° line, and still other nations have a Lorenz curve that lies on the 45° line. 
E)  None of the above answers is correct. 
A)  some nations have Lorenz curves that lie above the 45° line, other nations have Lorenz curves that lie below the 45° line, but no nation has a Lorenz curve that lie on the 45° line. 
B)  all nations have Lorenz curves that lie above the 45° line. 
C)  all nations have Lorenz curves that lie below the 45° line. 
D)  some nations have Lorenz curves that lie above the 45° line, other nations have Lorenz curves that lie below the 45° line, and still other nations have a Lorenz curve that lies on the 45° line. 
E)  None of the above answers is correct.

Question 7

A government redistribution of income program is proposed with the aim of making the income distribution the same as the 45° line in a Lorenz curve diagram.What implications does the idea of the "big tradeoff" have for the program?

Accepted Answer

If the distribution of income was the sa

Question 8

Since 1970 in the United States,the distribution of income has changed and the group that benefited the most has been the

Accepted Answer

A)  better educated. 
B)  less educated. 
C)  low-skilled workers. 
D)  middle class, that is the group in the middle 20 percent of the income distribution. 
E)  None of the above answers is correct because all groups benefited equally. 
A)  better educated. 
B)  less educated. 
C)  low-skilled workers. 
D)  middle class, that is the group in the middle 20 percent of the income distribution. 
E)  None of the above answers is correct because all groups benefited equally.

Question 9

Three types of income maintenance programs used by the United States are

Accepted Answer

A)  income taxes, Social Security, and the earned income tax credit. 
B)  Social Security programs, OASDHI, and income taxes. 
C)  Social Security programs, unemployment compensation, and welfare programs. 
D)  welfare programs, income taxes, and the earned income tax credit. 
E)  income taxes, Social Security, and subsidized services. 
A)  income taxes, Social Security, and the earned income tax credit. 
B)  Social Security programs, OASDHI, and income taxes. 
C)  Social Security programs, unemployment compensation, and welfare programs. 
D)  welfare programs, income taxes, and the earned income tax credit. 
E)  income taxes, Social Security, and subsidized services.

Question 10

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 11

The three major types of income maintenance programs are

Accepted Answer

A)  Social Security programs, unemployment compensation, and welfare programs. 
B)  food stamps, unemployment compensation, and agricultural price supports. 
C)  student loans, rent control, and welfare programs. 
D)  corporate welfare, minimum wages, and affirmative action laws. 
E)  minimum wages, food stamps, and student loans. 
A)  Social Security programs, unemployment compensation, and welfare programs. 
B)  food stamps, unemployment compensation, and agricultural price supports. 
C)  student loans, rent control, and welfare programs. 
D)  corporate welfare, minimum wages, and affirmative action laws. 
E)  minimum wages, food stamps, and student loans.

Question 12

The gap between the salary of Tom Cruise and an unknown actor is over $15 million per movie.This difference means that Mr.Cruise's value of marginal product is

Accepted Answer

A)  over $15 million greater than the value of the marginal product of the unknown actor. 
B)  less than $15 greater than value of the marginal product of the unknown actor. 
C)  $15 million greater than the value of the marginal product of the unknown actor. 
D)  equal to the value of the marginal product of the unknown actor. 
E)  More information is need to make the comparison. 
A)  over $15 million greater than the value of the marginal product of the unknown actor. 
B)  less than $15 greater than value of the marginal product of the unknown actor. 
C)  $15 million greater than the value of the marginal product of the unknown actor. 
D)  equal to the value of the marginal product of the unknown actor. 
E)  More information is need to make the comparison.

Question 13

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 14

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 15

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

Accepted Answer

The government redistributes income usin

What is a Lorenz curve?

In the United States,the federal and state income tax system is

Social Security and unemployment compensation

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

-The table above gives the average income received by each 20 percent group of households.Complete the table by finding the percentage of income earned by each group and the cumulative percentage of income.Label the figure below and then plot the Lorenz curve.

Looking at the Lorenz curves for income distribution in all the world's nations,we would find that

A government redistribution of income program is proposed with the aim of making the income distribution the same as the 45° line in a Lorenz curve diagram.What implications does the idea of the "big tradeoff" have for the program?

Since 1970 in the United States,the distribution of income has changed and the group that benefited the most has been the

Three types of income maintenance programs used by the United States are

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

The three major types of income maintenance programs are

The gap between the salary of Tom Cruise and an unknown actor is over $15 million per movie.This difference means that Mr.Cruise's value of marginal product is

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

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

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

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 is a Lorenz curve?

In the United States,the federal and state income tax system is

Social Security and unemployment compensation

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

-The table above gives the average income received by each 20 percent group of households.Complete the table by finding the percentage of income earned by each group and the cumulative percentage of income.Label the figure below and then plot the Lorenz curve.

Looking at the Lorenz curves for income distribution in all the world's nations,we would find that

A government redistribution of income program is proposed with the aim of making the income distribution the same as the 45° line in a Lorenz curve diagram.What implications does the idea of the "big tradeoff" have for the program?

Since 1970 in the United States,the distribution of income has changed and the group that benefited the most has been the

Three types of income maintenance programs used by the United States are

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

The three major types of income maintenance programs are

The gap between the salary of Tom Cruise and an unknown actor is over $15 million per movie.This difference means that Mr.Cruise's value of marginal product is

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

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

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

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