Question 1

The U.S.distribution of income was more unequal in 1990 and 1980 than in 1970.

Accepted Answer

A) True 
 B)False

Question 2

Schooling and other types of training

Accepted Answer

A) are regarded as investment in human capital. 
B) are an important cause of income differentials. 
C) involve workers' sacrificing current income in order to enjoy higher future income. 
D) All of the above are correct. 
A) are regarded as investment in human capital. 
B) are an important cause of income differentials. 
C) involve workers' sacrificing current income in order to enjoy higher future income. 
D) All of the above are correct.

Question 3

Many economists believe that

Accepted Answer

A) once a negative income tax system was in place, the United States could increase economic equality indefinitely without reducing economic efficiency. 
B) a negative income tax would be less efficient than the current welfare system. 
C) replacing the current welfare system with a negative income tax would increase both economic efficiency and economic equality. 
D) None of the above is correct. 
A) once a negative income tax system was in place, the United States could increase economic equality indefinitely without reducing economic efficiency. 
B) a negative income tax would be less efficient than the current welfare system. 
C) replacing the current welfare system with a negative income tax would increase both economic efficiency and economic equality. 
D) None of the above is correct.

Question 4

A man may be preferred to a woman by an employer who will make a substantial investment in the training of the employee because

Accepted Answer

A) most employers are sexist and think that women belong in the home caring for children. 
B) as a group women tend to have a weaker attachment to the labor force than men. 
C) employers have observed that women are less productive than men on most jobs. 
D) employers are afraid women will disrupt the workplace by distracting the male employees. 
A) most employers are sexist and think that women belong in the home caring for children. 
B) as a group women tend to have a weaker attachment to the labor force than men. 
C) employers have observed that women are less productive than men on most jobs. 
D) employers are afraid women will disrupt the workplace by distracting the male employees.

Question 5

The United States has less income inequality than most other developed countries.

Accepted Answer

A) True 
 B)False

Question 6

Because of the book, The Other America, Michael Harrington was important in beginning the

Accepted Answer

A) Peace Corps. 
B) "War on Poverty." 
C) regulation of industry. 
D) Environmental Protection Agency. 
A) Peace Corps. 
B) "War on Poverty." 
C) regulation of industry. 
D) Environmental Protection Agency.

Question 7

The total amount of income in a society is independent of how income is distributed.

Accepted Answer

A) True 
 B)False

Question 8

Under a relative concept of poverty, poverty

Accepted Answer

A) doesn't really exist. 
B) is higher in rich countries than in poor countries. 
C) can never be wholly eliminated by public policy. 
D) declines as technology advances. 
A) doesn't really exist. 
B) is higher in rich countries than in poor countries. 
C) can never be wholly eliminated by public policy. 
D) declines as technology advances.

Question 9

In 2012, what percentage of total income in the U.S.was earned by the richest fifth of all U.S.households?

Accepted Answer

A) 20% 
B) 30% 
C) 40% 
D) 50% 
A) 20% 
B) 30% 
C) 40% 
D) 50%

Question 10

The factor accounting for most of the earnings difference between equally educated and experienced men and women is that women

Accepted Answer

A) receive less pay for equal work. 
B) are segregated into low-paying occupations. 
C) receive comparable pay only when they do work of comparable value to the employer. 
D) are prohibited by law from doing certain kinds of work. 
A) receive less pay for equal work. 
B) are segregated into low-paying occupations. 
C) receive comparable pay only when they do work of comparable value to the employer. 
D) are prohibited by law from doing certain kinds of work.

Question 11

Which of the following situations is the most common?
Men and women

Accepted Answer

A) doing the same job and getting equal pay. 
B) doing the same job and getting unequal pay. 
C) doing very different kinds of work and consequently having different earnings. 
D) randomly distributed across occupations with average earnings about equal. 
A) doing the same job and getting equal pay. 
B) doing the same job and getting unequal pay. 
C) doing very different kinds of work and consequently having different earnings. 
D) randomly distributed across occupations with average earnings about equal.

Question 12

With a negative income tax providing a minimum of $20,000 and a tax rate of 25 percent, what amount of supplement would the government pay to a household earning $10,000?

Accepted Answer

A) $5,000 
B) $10,000 
C) $17,500 
D) $20,000 
A) $5,000 
B) $10,000 
C) $17,500 
D) $20,000

Question 13

Who would receive payments from the government under a negative income tax system?

Accepted Answer

A) everyone 
B) only people with no earnings 
C) only people with incomes below a certain level 
D) only people with incomes above a certain level 
A) everyone 
B) only people with no earnings 
C) only people with incomes below a certain level 
D) only people with incomes above a certain level

Question 14

By 2012, the poverty line for a typical family of four stood at about $23,250.

Accepted Answer

A) True 
 B)False

Question 15

Competition reduces some but not all discrimination.Where can one expect competition to reduce discrimination, and where is discrimination likely to go on even if there is competition?

Accepted Answer

Competition reduces the employer's abili

Question 16

In their 1994 book, The Bell Curve, Murray and Herrnstein presented evidence that IQ is an important determinant of economic success.

Accepted Answer

A) True 
 B)False

Question 17

One benefit of a negative income tax is that it would increase work incentives.

Accepted Answer

A) True 
 B)False

Question 18

Economic discrimination occurs when two equal factors of production are paid differently.

Accepted Answer

A) True 
 B)False

Question 19

Affirmative action laws require employers to search for qualified minority applicants, but not to necessarily give them jobs.

Accepted Answer

A) True 
 B)False

Question 20

If income is distributed equally in a society, the poorest fifth of the population receives

Accepted Answer

A) 5 percent of the total income. 
B) one-fifth as much as the richest fifth of the population. 
C) 20 percent of society's total income. 
D) 50 percent of society's total income. 
A) 5 percent of the total income. 
B) one-fifth as much as the richest fifth of the population. 
C) 20 percent of society's total income. 
D) 50 percent of society's total income.

Exam 20: Poverty, Inequality, and Discrimination

The U.S.distribution of income was more unequal in 1990 and 1980 than in 1970.

Schooling and other types of training

Many economists believe that

A man may be preferred to a woman by an employer who will make a substantial investment in the training of the employee because

The United States has less income inequality than most other developed countries.

Because of the book, The Other America, Michael Harrington was important in beginning the

The total amount of income in a society is independent of how income is distributed.

Under a relative concept of poverty, poverty

In 2012, what percentage of total income in the U.S.was earned by the richest fifth of all U.S.households?

The factor accounting for most of the earnings difference between equally educated and experienced men and women is that women

Which of the following situations is the most common? Men and women

With a negative income tax providing a minimum of $20,000 and a tax rate of 25 percent, what amount of supplement would the government pay to a household earning $10,000?

Who would receive payments from the government under a negative income tax system?

By 2012, the poverty line for a typical family of four stood at about $23,250.

Competition reduces some but not all discrimination.Where can one expect competition to reduce discrimination, and where is discrimination likely to go on even if there is competition?

In their 1994 book, The Bell Curve, Murray and Herrnstein presented evidence that IQ is an important determinant of economic success.

One benefit of a negative income tax is that it would increase work incentives.

Economic discrimination occurs when two equal factors of production are paid differently.

Affirmative action laws require employers to search for qualified minority applicants, but not to necessarily give them jobs.

If income is distributed equally in a society, the poorest fifth of the population receives

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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