Question 1

If labor markets are competitive, discriminating employers

Accepted Answer

A) will have to pay higher wages since the available labor supply is smaller. 
B) will have higher costs and therefore be at a competitive disadvantage. 
C) will be driven out of business by nondiscriminators. 
D) All of the above are true. 
A) will have to pay higher wages since the available labor supply is smaller. 
B) will have higher costs and therefore be at a competitive disadvantage. 
C) will be driven out of business by nondiscriminators. 
D) All of the above are true. D

Question 2

Inheritance taxes tend to increase income inequality in the long run.

Accepted Answer

A) True 
 B)False  False

Question 3

Discrimination exists when a man and a woman with the same levels of education earn different incomes.

Accepted Answer

A) True 
 B)False  False

Question 4

Affirmative action programs,

Accepted Answer

A) according to critics, are clearly quota systems that lead to reverse discrimination. 
B) according to supporters, make efforts to find qualified minorities and women and hire them. 
C) according to critics, clearly lead to the hiring of unqualified people and thus reduce efficiency. 
D) All of the above are true. 
A) according to critics, are clearly quota systems that lead to reverse discrimination. 
B) according to supporters, make efforts to find qualified minorities and women and hire them. 
C) according to critics, clearly lead to the hiring of unqualified people and thus reduce efficiency. 
D) All of the above are true.

Question 5

TANF compels welfare recipients to go to work after a period of two years.

Accepted Answer

A) True 
 B)False

Question 6

Economic discrimination occurs when equivalent factors of production receive different payments for equal contributions to output.

Accepted Answer

A) True 
 B)False

Question 7

In 1963, the government first adopted an official definition of poverty: families with incomes below $3,000.

Accepted Answer

A) True 
 B)False

Question 8

Generally speaking, markets do a(n) ____ job of reconciling the demands of fairness and efficiency.

Accepted Answer

A) excellent 
B) above-average 
C) average 
D) poor 
A) excellent 
B) above-average 
C) average 
D) poor

Question 9

An example of a policy to combat poverty is

Accepted Answer

A) TANF. 
B) food stamps. 
C) Social Security. 
D) All of the above are correct. 
A) TANF. 
B) food stamps. 
C) Social Security. 
D) All of the above are correct.

Question 10

The "War on Poverty" was declared by President Ronald Reagan in 1982.

Accepted Answer

A) True 
 B)False

Question 11

From a purely economic point of view, discrimination exists when

Accepted Answer

A) black teenagers earn more than white teenagers. 
B) all factors are earning average products. 
C) women earn less than men. 
D) equivalent factors earn different payments for equal contributions to output. 
A) black teenagers earn more than white teenagers. 
B) all factors are earning average products. 
C) women earn less than men. 
D) equivalent factors earn different payments for equal contributions to output.

Question 12

A free market system tends to

Accepted Answer

A) produce a fairly equal distribution of income. 
B) pay people exactly what they are worth. 
C) produce a relatively unequal distribution of income. 
D) pay most people more than they are worth, at the expense of reducing firms' profits. 
A) produce a fairly equal distribution of income. 
B) pay people exactly what they are worth. 
C) produce a relatively unequal distribution of income. 
D) pay most people more than they are worth, at the expense of reducing firms' profits.

Question 13

Economists might be willing to accept a policy that adversely affected distribution of income if it

Accepted Answer

A) lessened income disparities. 
B) diminished labor productivity by a large amount. 
C) increased productivity by a large amount. 
D) were favorable to the rich. 
A) lessened income disparities. 
B) diminished labor productivity by a large amount. 
C) increased productivity by a large amount. 
D) were favorable to the rich.

Question 14

In a market economy, incomes would be very equal if there was no discrimination.

Accepted Answer

A) True 
 B)False

Question 15

Inheritance taxes tend to increase income inequality in the long run.

Accepted Answer

A) True 
 B)False

Question 16

The fundamental criticism from the efficiency perspective of AFDC and other antipoverty programs is that

Accepted Answer

A) they do not help families with unemployed fathers. 
B) the benefits are too low. 
C) they offer disincentives to earning income. 
D) the tax on this income is too low. 
A) they do not help families with unemployed fathers. 
B) the benefits are too low. 
C) they offer disincentives to earning income. 
D) the tax on this income is too low.

Question 17

The United States has greater inequality of income than

Accepted Answer

A) Japan. 
B) Germany and Australia. 
C) most industrialized nations. 
D) all of the above. 
A) Japan. 
B) Germany and Australia. 
C) most industrialized nations. 
D) all of the above.

Question 18

Discuss the major programs to combat poverty and evaluate them on the basis of work incentives.

Accepted Answer

One program is education, although this

Question 19

How does the idea of a leaky bucket relate to the study of income distribution?

Accepted Answer

The idea is drawn from the writings of t

Question 20

Discuss the controversy surrounding affirmative action.How does this controversy illustrate the trade-off between equality and efficiency?

Accepted Answer

Critics claim that affirmative action am

Exam 20: Poverty, Inequality, and Discrimination

If labor markets are competitive, discriminating employers

Inheritance taxes tend to increase income inequality in the long run.

Discrimination exists when a man and a woman with the same levels of education earn different incomes.

Affirmative action programs,

TANF compels welfare recipients to go to work after a period of two years.

Economic discrimination occurs when equivalent factors of production receive different payments for equal contributions to output.

In 1963, the government first adopted an official definition of poverty: families with incomes below $3,000.

Generally speaking, markets do a(n) ____ job of reconciling the demands of fairness and efficiency.

An example of a policy to combat poverty is

The "War on Poverty" was declared by President Ronald Reagan in 1982.

From a purely economic point of view, discrimination exists when

A free market system tends to

Economists might be willing to accept a policy that adversely affected distribution of income if it

In a market economy, incomes would be very equal if there was no discrimination.

Inheritance taxes tend to increase income inequality in the long run.

The fundamental criticism from the efficiency perspective of AFDC and other antipoverty programs is that

The United States has greater inequality of income than

Discuss the major programs to combat poverty and evaluate them on the basis of work incentives.

How does the idea of a leaky bucket relate to the study of income distribution?

Discuss the controversy surrounding affirmative action.How does this controversy illustrate the trade-off between equality and efficiency?

What Is Economics

The Economy: Myth and Reality

The Fundamental Economic Problem: Scarcity and Choice

Supply and Demand: an Initial Look

Consumer Choice: Individual and Market Demand

Demand and Elasticity

Production, Inputs, and Cost: Building Blocks for Supply Analysis

Output, Price, and Profit: the Importance of Marginal Analysis

Securities: Business Finance and the Economy: the Tail That Wags the Dog

The Firm and the Industry Under Perfect Competition

Monopoly

Between Competition and Monopoly

Limiting Market Power: Regulation and Antitrust

The Case for Free Markets: the Price System

The Shortcomings of Free Markets

Externalities, the Environment, and Natural Resources

Taxation and Resource Allocation

Pricing the Factors of Production

Labor and Entrepreneurship: the Human Inputs

Is Useconomic Leadership Threatened

An Introduction to Macroeconomics

The Goals of Macroeconomic Policy

Economic Growth: Theory and Policy

Aggregate Demand and the Powerful Consumer

Demand-Side Equilibrium: Unemployment or Inflation

Bringing in the Supply Side: Unemployment and Inflation

Managing Aggregate Demand: Fiscal Policy

Money and the Banking System

Monetary Policy: Conventional and Unconventional

He Financial Crisis and the Great Recession

The Debate Over Monetary and Fiscal Policy

Budget Deficits in the Short and Long Run

The Trade-Off Between Inflation and Unemployment

International Trade and Comparative Advantage

The International Monetary System: Order or Disorder

Exchange Rates and the Macroeconomy

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