Question 1

Unequal incomes arise from

Accepted Answer

A) discrimination. 
B) luck. 
C) different schooling. 
D) all of the above factors. 
A) discrimination. 
B) luck. 
C) different schooling. 
D) all of the above factors.

Question 2

Which of the following best describes compensating wage differentials?

Accepted Answer

A) Some jobs are more difficult than others, and the pay for them reflects this. 
B) Some jobs require more training than others, and the pay for them reflects this. 
C) Some jobs require more experience than others, and the pay for them reflects this. 
D) Some jobs require unique abilities, and the pay for them reflects this. 
A) Some jobs are more difficult than others, and the pay for them reflects this. 
B) Some jobs require more training than others, and the pay for them reflects this. 
C) Some jobs require more experience than others, and the pay for them reflects this. 
D) Some jobs require unique abilities, and the pay for them reflects this.

Question 3

The economic theory of discrimination suggests that the practice of apartheid in South Africa should have

Accepted Answer

A) worsened the economic condition of only the blacks. 
B) worsened the economic condition of only the whites. 
C) worsened the economic condition of whites as well as others. 
D) improved the economic condition of the whites. 
A) worsened the economic condition of only the blacks. 
B) worsened the economic condition of only the whites. 
C) worsened the economic condition of whites as well as others. 
D) improved the economic condition of the whites.

Question 4

In 1964, the poverty line for a family stood at about which of the following figures?

Accepted Answer

A) $2,100 
B) $3,000 
C) $4,500 
D) $7,500 
A) $2,100 
B) $3,000 
C) $4,500 
D) $7,500

Question 5

The public assistance program that economists believe can promote economic equality at the least cost in economic efficiency is

Accepted Answer

A) Aid to Families with Dependent Children (AFD
C) . 
B) a negative income tax (NIT). 
C) food stamps. 
D) Medicaid. 
A) Aid to Families with Dependent Children (AFD
C) . 
B) a negative income tax (NIT). 
C) food stamps. 
D) Medicaid.

Question 6

The difference between the earnings of construction workers who work on bridges and skyscrapers and those who work on highways is probably due to

Accepted Answer

A) differences in education requirements. 
B) ability (mental) differences. 
C) a compensating differential. 
D) luck. 
A) differences in education requirements. 
B) ability (mental) differences. 
C) a compensating differential. 
D) luck.

Question 7

Death taxes, both state and federal, account for about _____ percent of total tax revenue.

Accepted Answer

A) ​1% 
B) ​2% 
C) ​3% 
D) ​10% 
A) ​1% 
B) ​2% 
C) ​3% 
D) ​10%

Question 8

It is not optimal to have equal incomes.

Accepted Answer

A) True 
 B)False

Question 9

Large income differences will be eradicated if the market mechanism is working well.

Accepted Answer

A) True 
 B)False

Question 10

If income redistribution policy is based on the relative concept of poverty, the war on poverty

Accepted Answer

A) will be won quite soon. 
B) is, by definition, unwinnable. 
C) has not helped at all. 
D) has already been won. 
A) will be won quite soon. 
B) is, by definition, unwinnable. 
C) has not helped at all. 
D) has already been won.

Question 11

Compared to a negative income tax, the federal personal income tax is thought of as a way to promote greater equality.Why?

Accepted Answer

The NIT is largely thought of as an anti

Question 12

Is wage discrimination more likely in competitive or monopolistic markets?

Accepted Answer

Competitive firms that discriminate may

Question 13

The distribution of income in the United States has grown substantially more unequal since about:

Accepted Answer

A) ​1970 
B) ​1980 
C) ​1990 
D) ​2000 
A) ​1970 
B) ​1980 
C) ​1990 
D) ​2000

Question 14

Which of the following is a source of income inequality?

Accepted Answer

A) differences in ability 
B) differences in work intensity 
C) risk taking 
D) all of the above 
A) differences in ability 
B) differences in work intensity 
C) risk taking 
D) all of the above

Question 15

An employer who refuses to hire women because of the chance they may quit for childbearing purposes is engaging in statistical discrimination.

Accepted Answer

A) True 
 B)False

Question 16

Direct cash grand programs are thought to be an example of an efficient redistribution program.

Accepted Answer

A) True 
 B)False

Question 17

Compared to a nonpoor individual, a poor individual is more likely to be

Accepted Answer

A) female. 
B) black. 
C) a child. 
D) All of the above are correct. 
A) female. 
B) black. 
C) a child. 
D) All of the above are correct.

Question 18

Programs that reduce the incentive to work make income redistribution inefficient.

Accepted Answer

A) True 
 B)False

Question 19

TANF sets a lifetime cap for benefits at 10 years.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following taxes tend to make income distribution in the United States more equal?

Accepted Answer

A) sales (i.e., excise) taxes 
B) personal income taxes 
C) payroll taxes 
D) All of the above are correct. 
A) sales (i.e., excise) taxes 
B) personal income taxes 
C) payroll taxes 
D) All of the above are correct.

Exam 20: Poverty, Inequality, and Discrimination

Unequal incomes arise from

Which of the following best describes compensating wage differentials?

The economic theory of discrimination suggests that the practice of apartheid in South Africa should have

In 1964, the poverty line for a family stood at about which of the following figures?

The public assistance program that economists believe can promote economic equality at the least cost in economic efficiency is

The difference between the earnings of construction workers who work on bridges and skyscrapers and those who work on highways is probably due to

Death taxes, both state and federal, account for about _____ percent of total tax revenue.

It is not optimal to have equal incomes.

Large income differences will be eradicated if the market mechanism is working well.

If income redistribution policy is based on the relative concept of poverty, the war on poverty

Compared to a negative income tax, the federal personal income tax is thought of as a way to promote greater equality.Why?

Is wage discrimination more likely in competitive or monopolistic markets?

The distribution of income in the United States has grown substantially more unequal since about:

Which of the following is a source of income inequality?

An employer who refuses to hire women because of the chance they may quit for childbearing purposes is engaging in statistical discrimination.

Direct cash grand programs are thought to be an example of an efficient redistribution program.

Compared to a nonpoor individual, a poor individual is more likely to be

Programs that reduce the incentive to work make income redistribution inefficient.

TANF sets a lifetime cap for benefits at 10 years.

Which of the following taxes tend to make income distribution in the United States more equal?

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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