Question 1

A family's ability to buy goods and services depends largely on its transitory income,which is its normal,or average,income.

Accepted Answer

A) True 
 B)False

Question 2

What does the poverty rate include

Accepted Answer

A) income, in-kind transfers, and other government assistance aid 
B) income, in-kind transfers, and housing assistance only 
C) income and in-kind transfers only 
D) income only 
A) income, in-kind transfers, and other government assistance aid 
B) income, in-kind transfers, and housing assistance only 
C) income and in-kind transfers only 
D) income only

Question 3

What do critics of the minimum wage argue

Accepted Answer

A) Labour demand is inelastic, so firms can adjust production. 
B) Firms will still be able to adjust employment. 
C) Many minimum-wage earners are teenagers from middle-class families. 
D) Higher wages result in lower productivity. 
A) Labour demand is inelastic, so firms can adjust production. 
B) Firms will still be able to adjust employment. 
C) Many minimum-wage earners are teenagers from middle-class families. 
D) Higher wages result in lower productivity.

Question 4

"Only individual members of society earn income,not society itself." What political philosophy would this statement most likely be attributed to

Accepted Answer

A) utilitarianism 
B) liberalism 
C) libertarianism 
D) conservatism 
A) utilitarianism 
B) liberalism 
C) libertarianism 
D) conservatism

Question 5

A person's lifetime income smooths out the highs and lows of the life cycle.Therefore,lifetime incomes are surely more equally distributed across the population than are annual incomes.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is an example of a transitory change in income

Accepted Answer

A) the annual cost of living adjustment to your salary 
B) the increase in income that results from a job promotion linked to your education 
C) the declining income from freezing rain damage to maple syrup producers 
D) the increase in income that results from a worker moving to take a better job 
A) the annual cost of living adjustment to your salary 
B) the increase in income that results from a job promotion linked to your education 
C) the declining income from freezing rain damage to maple syrup producers 
D) the increase in income that results from a worker moving to take a better job

Question 7

What kinds of families are more likely to be on welfare programs

Accepted Answer

A) Most families in welfare programs have both parents in the home. 
B) Most families in welfare programs are female head-of-household families in which the father is absent. 
C) Most families in welfare programs have adult children with disabilities living at home. 
D) Most families in welfare programs are ineligible to receive assistance from other support programs. 
A) Most families in welfare programs have both parents in the home. 
B) Most families in welfare programs are female head-of-household families in which the father is absent. 
C) Most families in welfare programs have adult children with disabilities living at home. 
D) Most families in welfare programs are ineligible to receive assistance from other support programs.

Question 8

Which political philosophy believes in balancing the gains from greater equality against the losses from distorted incentives

Accepted Answer

A) utilitarianism 
B) liberalism 
C) libertarianism 
D) monetarism 
A) utilitarianism 
B) liberalism 
C) libertarianism 
D) monetarism

Question 9

"Equality of opportunities is more important than equality of incomes." What political philosophy would this statement be most likely attributed to

Accepted Answer

A) utilitarianism 
B) liberalism 
C) libertarianism 
D) conservatism 
A) utilitarianism 
B) liberalism 
C) libertarianism 
D) conservatism

Question 10

Based on Canadian income data from 2011,what was the bottom fifth of all families' average income after transfers and taxes

Accepted Answer

A) $10,100 
B) $12,100 
C) $13,600 
D) $15,500 
A) $10,100 
B) $12,100 
C) $13,600 
D) $15,500

Question 11

Which political philosophy's prime objective is to raise total utility

Accepted Answer

A) utilitarianism 
B) liberalism 
C) libertarianism 
D) communitarianism 
A) utilitarianism 
B) liberalism 
C) libertarianism 
D) communitarianism

Question 12

According to the doctrine of liberalism,what are principles of justice the result of

Accepted Answer

A) fair agreement and bargain 
B) command-and-control policies 
C) domination of the powerful by the weak 
D) workers owning the factors of production 
A) fair agreement and bargain 
B) command-and-control policies 
C) domination of the powerful by the weak 
D) workers owning the factors of production

Question 13

In 2011,what was the approximate poverty rate in Canada based on LICO

Accepted Answer

A) 4 percent 
B) 6 percent 
C) 7 percent 
D) 9 percent 
A) 4 percent 
B) 6 percent 
C) 7 percent 
D) 9 percent

Question 14

When the government enacts policies to make the distribution of income more equitable,it distorts incentives,alters behaviour,and makes the allocation of resources less efficient.

Accepted Answer

A) True 
 B)False

Question 15

Why is the "American dream" more likely in Canada than the United States

Accepted Answer

A) Canada has more economic mobility and opportunity than the United States 
B) Canadian economy develops faster than the United States. 
C) Income distribution has more dispersion in Canada than in the United States. 
D) Canada has more university graduates than the United States. 
A) Canada has more economic mobility and opportunity than the United States 
B) Canadian economy develops faster than the United States. 
C) Income distribution has more dispersion in Canada than in the United States. 
D) Canada has more university graduates than the United States.

Question 16

How is income inequality in an economy traditionally measured

Accepted Answer

A) by calculating the bell curve of ability, effort, and chance that exists in an economy 
B) by calculating the percentage of families that fall into broad income classifications 
C) by referring to standard international distribution tables 
D) by using the normal distribution 
A) by calculating the bell curve of ability, effort, and chance that exists in an economy 
B) by calculating the percentage of families that fall into broad income classifications 
C) by referring to standard international distribution tables 
D) by using the normal distribution

Question 17

Only about half the individuals that fall under the poverty line remain there year to year.

Accepted Answer

A) True 
 B)False

Question 18

Which problem in measuring inequality is related to the extent that a family saves and borrows to buffer itself

Accepted Answer

A) in-kind transfers 
B) economic life cycle 
C) transitory versus permanent income 
D) economic mobility 
A) in-kind transfers 
B) economic life cycle 
C) transitory versus permanent income 
D) economic mobility

Question 19

What is the political philosophy that allows us to consider the redistribution of income as a form of social insurance

Accepted Answer

A) utilitarianism 
B) liberalism 
C) libertarianism 
D) conservatism 
A) utilitarianism 
B) liberalism 
C) libertarianism 
D) conservatism

Question 20

How are binding minimum-wage laws best characterized

Accepted Answer

A) They are most effective at alleviating poverty when labour demand is highly elastic. 
B) They force a market imbalance between the supply and demand for labour. 
C) They increase the efficiency of labour markets. 
D) They are typically associated with a rise in employment among the poor. 
A) They are most effective at alleviating poverty when labour demand is highly elastic. 
B) They force a market imbalance between the supply and demand for labour. 
C) They increase the efficiency of labour markets. 
D) They are typically associated with a rise in employment among the poor.

Exam 20: Income Inequality and Poverty

A family's ability to buy goods and services depends largely on its transitory income,which is its normal,or average,income.

What does the poverty rate include

What do critics of the minimum wage argue

"Only individual members of society earn income,not society itself." What political philosophy would this statement most likely be attributed to

A person's lifetime income smooths out the highs and lows of the life cycle.Therefore,lifetime incomes are surely more equally distributed across the population than are annual incomes.

Which of the following is an example of a transitory change in income

What kinds of families are more likely to be on welfare programs

Which political philosophy believes in balancing the gains from greater equality against the losses from distorted incentives

"Equality of opportunities is more important than equality of incomes." What political philosophy would this statement be most likely attributed to

Based on Canadian income data from 2011,what was the bottom fifth of all families' average income after transfers and taxes

Which political philosophy's prime objective is to raise total utility

According to the doctrine of liberalism,what are principles of justice the result of

In 2011,what was the approximate poverty rate in Canada based on LICO

When the government enacts policies to make the distribution of income more equitable,it distorts incentives,alters behaviour,and makes the allocation of resources less efficient.

Why is the "American dream" more likely in Canada than the United States

How is income inequality in an economy traditionally measured

Only about half the individuals that fall under the poverty line remain there year to year.

Which problem in measuring inequality is related to the extent that a family saves and borrows to buffer itself

What is the political philosophy that allows us to consider the redistribution of income as a form of social insurance

How are binding minimum-wage laws best characterized

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Elasticity and Its Application

Supply, demand, and Government Policies

Consumers, producers, and the Efficiency of Markets

Application: the Costs of Taxation

Application: International Trade

Externalities

Public Goods and Common Resources

The Design of the Tax System

The Costs of Production

Firms in Competitive Markets

Monopoly

Monopolistic Competition

Oligopoly

The Markets for the Factors of Production

Earnings and Discrimination

The Theory of Consumer Choice

Frontiers of Microeconomics

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