Question 1

If two individuals have identical schooling, their incomes will be equal.

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

A) 1.5% 
B) 1.8% 
C) 2.0% 
D) 3.2% 
A) 1.5% 
B) 1.8% 
C) 2.0% 
D) 3.2%

Question 3

Is education the swiftest method to eliminate poverty.Explain.

Accepted Answer

Evidence points clearly to the conclusio

Question 4

How is the dividing line between poverty and nonpoverty measured?
 Does this method overstate the degree of poverty?

Accepted Answer

Originally, the poverty line was establi

Question 5

Briefly and concisely define the following terms:
a.statistical discrimination
b.compensating wage differential
c.affirmative action

Accepted Answer

Comprehension
a.Statistical discrimina

Question 6

Although economists generally favor a negative income tax, there is little political support for it.

Accepted Answer

A) True 
 B)False

Question 7

What has been the trend in eliminating poverty since 1960?

Accepted Answer

Progress was made through the 1960s, par

Question 8

The essence of the trade-off between equality and efficiency is that

Accepted Answer

A) taxes and transfers reduce incentives to earn income, thus reducing GNP. 
B) people are ideologically opposed to socialistic income redistribution. 
C) redistribution violates the "work ethic." 
D) people are prejudiced against blacks and women. 
A) taxes and transfers reduce incentives to earn income, thus reducing GNP. 
B) people are ideologically opposed to socialistic income redistribution. 
C) redistribution violates the "work ethic." 
D) people are prejudiced against blacks and women.

Question 9

In the United States, the incidence of poverty has declined since the 1970s.

Accepted Answer

A) True 
 B)False

Question 10

The welfare program economists believe to be most compatible with economic efficiency is

Accepted Answer

A) a regressive tax system. 
B) AFDC. 
C) a negative income tax. 
D) Medicare/Medicaid. 
A) a regressive tax system. 
B) AFDC. 
C) a negative income tax. 
D) Medicare/Medicaid.

Question 11

Policies that redistribute income

Accepted Answer

A) reduce the rewards of high-income earners. 
B) raise the rewards of low-income earners. 
C) reduce the incentive to earn high income. 
D) All of the above are correct. 
A) reduce the rewards of high-income earners. 
B) raise the rewards of low-income earners. 
C) reduce the incentive to earn high income. 
D) All of the above are correct.

Question 12

The relative concept of poverty is based on how far a family falls behind the

Accepted Answer

A) average family income. 
B) top 20 percent of families. 
C) minimum in wages. 
D) any of the above. 
A) average family income. 
B) top 20 percent of families. 
C) minimum in wages. 
D) any of the above.

Question 13

The 1994 book by Murray and Herrnstein, The Bell Curve, was about

Accepted Answer

A) government debt. 
B) the intelligence factor. 
C) capital growth. 
D) military readiness. 
A) government debt. 
B) the intelligence factor. 
C) capital growth. 
D) military readiness.

Question 14

In the Santa Rita silver mines in Arizona in 1870, Mexican miners received about $12 per month while "American" miners received $70.Although the wages of both groups tended to rise over time, the gap persisted until at least 1910.Mexican and American miners did the same work and were equally productive.Economists call this pay differential

Accepted Answer

A) prejudicial differentials. 
B) compensating differentials. 
C) economic discrimination. 
D) Lorenz discrimination. 
A) prejudicial differentials. 
B) compensating differentials. 
C) economic discrimination. 
D) Lorenz discrimination.

Question 15

An example of an in-kind benefit is

Accepted Answer

A) a welfare payment. 
B) capital gains. 
C) a charitable contribution of money. 
D) public housing. 
A) a welfare payment. 
B) capital gains. 
C) a charitable contribution of money. 
D) public housing.

Question 16

One of the more powerful forces leading to an end in economic discrimination is

Accepted Answer

A) pure competition. 
B) pure monopoly. 
C) government regulation. 
D) oligopolistic rivalry. 
A) pure competition. 
B) pure monopoly. 
C) government regulation. 
D) oligopolistic rivalry.

Question 17

Affirmative action programs are intended to combat

Accepted Answer

A) poverty. 
B) economic inequality. 
C) discriminatory practices by employers. 
D) "comparable worth" systems of compensation. 
A) poverty. 
B) economic inequality. 
C) discriminatory practices by employers. 
D) "comparable worth" systems of compensation.

Question 18

What are the reasons for unequal distribution of income?
 List at least six reasons.

Accepted Answer

The text lists the following eight reaso

Question 19

Affirmative action laws require employers to hire specified numbers of minorities.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following observations concerning the absolute definition of poverty is true?

Accepted Answer

A) It is based on average income. 
B) It is an optimistic definition. 
C) It is not arbitrary in nature. 
D) It is a cultural definition. 
A) It is based on average income. 
B) It is an optimistic definition. 
C) It is not arbitrary in nature. 
D) It is a cultural definition.

Exam 20: Poverty, Inequality, and Discrimination

If two individuals have identical schooling, their incomes will be equal.

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

Is education the swiftest method to eliminate poverty.Explain.

How is the dividing line between poverty and nonpoverty measured? Does this method overstate the degree of poverty?

Briefly and concisely define the following terms: a.statistical discrimination b.compensating wage differential c.affirmative action

Although economists generally favor a negative income tax, there is little political support for it.

What has been the trend in eliminating poverty since 1960?

The essence of the trade-off between equality and efficiency is that

In the United States, the incidence of poverty has declined since the 1970s.

The welfare program economists believe to be most compatible with economic efficiency is

Policies that redistribute income

The relative concept of poverty is based on how far a family falls behind the

The 1994 book by Murray and Herrnstein, The Bell Curve, was about

An example of an in-kind benefit is

One of the more powerful forces leading to an end in economic discrimination is

Affirmative action programs are intended to combat

What are the reasons for unequal distribution of income? List at least six reasons.

Affirmative action laws require employers to hire specified numbers of minorities.

Which of the following observations concerning the absolute definition of poverty is true?

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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