Question 1

In the negative income tax plan, a guarantee of $5,000 and a tax rate of 50 percent imply a break-even income of which of the following figures?

Accepted Answer

A) $1,000 
B) $2,500 
C) $10,000 
D) $12,500 
A) $1,000 
B) $2,500 
C) $10,000 
D) $12,500

Question 2

The lowest-income fifth of the population ordinarily earns about 20 percent of the income in the United States.

Accepted Answer

A) True 
 B)False

Question 3

The relative concept of poverty means that poverty will never be eliminated.

Accepted Answer

A) True 
 B)False

Question 4

The national poverty rate in the United States reached a low in the

Accepted Answer

A) early 1960s. 
B) early 1970s. 
C) late 1970s. 
D) early 1980s. 
A) early 1960s. 
B) early 1970s. 
C) late 1970s. 
D) early 1980s.

Question 5

Economic discrimination and prejudice

Accepted Answer

A) are synonymous. 
B) must both exist in statistical discrimination. 
C) often occur together. 
D) are mutually exclusive. 
A) are synonymous. 
B) must both exist in statistical discrimination. 
C) often occur together. 
D) are mutually exclusive.

Question 6

It has been found that

Accepted Answer

A) less-developed countries have more equality of income distribution. 
B) more-developed countries have more equality of income distribution. 
C) only prior communist countries have more equality of income distribution. 
D) income distribution cannot be measured among countries with different political and economic systems. 
A) less-developed countries have more equality of income distribution. 
B) more-developed countries have more equality of income distribution. 
C) only prior communist countries have more equality of income distribution. 
D) income distribution cannot be measured among countries with different political and economic systems.

Question 7

The poor are those who fall too far behind the average income.This refers to the ____ definition of poverty.

Accepted Answer

A) marginal 
B) absolute 
C) relative 
D) threshold 
A) marginal 
B) absolute 
C) relative 
D) threshold

Question 8

Competitive forces will reduce the effects of employers' discrimination over time.

Accepted Answer

A) True 
 B)False

Question 9

Discrimination can come from many groups of people, including employers and fellow employees.

Accepted Answer

A) True 
 B)False

Question 10

What are the strengths and weaknesses of the negative income tax (NIT) as an alternative to traditional welfare programs?

Accepted Answer

The tax would increase the incentive to

Question 11

Define the following terms and explain their importance to the study of economics.
a.poverty line
b.economic discrimination
c.optimal inequality
d.negative income tax

Accepted Answer

Comprehension
a.The poverty line is an a

Question 12

Roughly what percentage of Americans were officially considered poor in 2012?

Accepted Answer

A) 2 percent 
B) 9 percent 
C) 15 percent 
D) 22 percent 
A) 2 percent 
B) 9 percent 
C) 15 percent 
D) 22 percent

Question 13

In labor markets, risk taking accounts for some income differences.

Accepted Answer

A) True 
 B)False

Question 14

The relative concept of poverty is based on how far behind average income a particular family gets.

Accepted Answer

A) True 
 B)False

Question 15

Aid to families with dependent children was

Accepted Answer

A) a close-to-perfect welfare or public assistance program. 
B) criticized because it provided little incentive for recipients to get jobs. 
C) contributing to efficient production of goods. 
D) superior to a negative income tax for work incentives. 
A) a close-to-perfect welfare or public assistance program. 
B) criticized because it provided little incentive for recipients to get jobs. 
C) contributing to efficient production of goods. 
D) superior to a negative income tax for work incentives.

Question 16

Figure 21-1
  
-In Figure 21-1, if the existing antipoverty program were replaced by a negative income tax, most economists believe that it would result in a move like which of the following?

Accepted Answer

A) C to F 
B) A to B 
C) D to E 
D) G to D 
A) C to F 
B) A to B 
C) D to E 
D) G to D

Question 17

Nondiscriminatory firms hiring in the market place have a cost advantage.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following countries has the most equal income distribution?

Accepted Answer

A) Sweden 
B) Japan 
C) United States 
D) Netherlands 
A) Sweden 
B) Japan 
C) United States 
D) Netherlands

Question 19

For most welfare recipients, the negative income tax plan would increase incentives to work.

Accepted Answer

A) True 
 B)False

Question 20

The existence of differences between the average earnings of men and women

Accepted Answer

A) proves the existence of economic discrimination. 
B) may be partially due to factors other than economic discrimination. 
C) proves that men on average invest more in their human capital than women do. 
D) indicates that men are on average smarter than women. 
A) proves the existence of economic discrimination. 
B) may be partially due to factors other than economic discrimination. 
C) proves that men on average invest more in their human capital than women do. 
D) indicates that men are on average smarter than women.

Exam 20: Poverty, Inequality, and Discrimination

In the negative income tax plan, a guarantee of $5,000 and a tax rate of 50 percent imply a break-even income of which of the following figures?

The lowest-income fifth of the population ordinarily earns about 20 percent of the income in the United States.

The relative concept of poverty means that poverty will never be eliminated.

The national poverty rate in the United States reached a low in the

Economic discrimination and prejudice

It has been found that

The poor are those who fall too far behind the average income.This refers to the ____ definition of poverty.

Competitive forces will reduce the effects of employers' discrimination over time.

Discrimination can come from many groups of people, including employers and fellow employees.

What are the strengths and weaknesses of the negative income tax (NIT) as an alternative to traditional welfare programs?

Define the following terms and explain their importance to the study of economics. a.poverty line b.economic discrimination c.optimal inequality d.negative income tax

Roughly what percentage of Americans were officially considered poor in 2012?

In labor markets, risk taking accounts for some income differences.

The relative concept of poverty is based on how far behind average income a particular family gets.

Aid to families with dependent children was

Figure 21-1 -In Figure 21-1, if the existing antipoverty program were replaced by a negative income tax, most economists believe that it would result in a move like which of the following?

Nondiscriminatory firms hiring in the market place have a cost advantage.

Which of the following countries has the most equal income distribution?

For most welfare recipients, the negative income tax plan would increase incentives to work.

The existence of differences between the average earnings of men and women

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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