Question 1

A minority candidate may not have the same chances as a white candidate for a job simply based on an employer's misconceptions about minorities.

Accepted Answer

A) True 
 B)False

Question 2

Roughly what was the median level of household income in the U.S.in 2012?

Accepted Answer

A) 50,000 
B) 60,000 
C) 70,000 
D) 80,000 
A) 50,000 
B) 60,000 
C) 70,000 
D) 80,000

Question 3

Tax loopholes serve to

Accepted Answer

A) improve the incomes of the poor. 
B) erode the progressivity of the income tax. 
C) increase the progressivity of the income tax. 
D) decrease work incentives for the poor. 
A) improve the incomes of the poor. 
B) erode the progressivity of the income tax. 
C) increase the progressivity of the income tax. 
D) decrease work incentives for the poor.

Question 4

If the United States is to reduce poverty by using a negative income tax, the guaranteed income should be

Accepted Answer

A) two times the tax rate. 
B) close to the poverty line. 
C) close to the median income of all families. 
D) above the poverty line. 
A) two times the tax rate. 
B) close to the poverty line. 
C) close to the median income of all families. 
D) above the poverty line.

Question 5

Economists generally agree that in reducing poverty, policies should be sought that do the

Accepted Answer

A) greatest good for total production. 
B) least harm to work incentives. 
C) most good for the poor. 
D) least harm to equality of income. 
A) greatest good for total production. 
B) least harm to work incentives. 
C) most good for the poor. 
D) least harm to equality of income.

Question 6

-Consider the economy described by the income distribution in Table 21-1.From this table, we can conclude that the

Accepted Answer

A) poorest quarter of the population earns 15 percent of the income. 
B) "middle" fifth of the population earns 32 percent of the income. 
C) poorest quarter of the population earns 19 percent of the income. 
D) richest fifth of the population earns 49 percent of the income. 
A) poorest quarter of the population earns 15 percent of the income. 
B) "middle" fifth of the population earns 32 percent of the income. 
C) poorest quarter of the population earns 19 percent of the income. 
D) richest fifth of the population earns 49 percent of the income.

Question 7

Discuss the criticisms leveled against the Aid to Families with Dependent Children program.

Accepted Answer

Aid to Families with Dependent Children

Question 8

Two policies to combat discrimination are affirmative action and right-to-work laws.

Accepted Answer

A) True 
 B)False

Question 9

Employers near military bases are aware that wives generally accompany their servicemen husbands when they are transferred.When presented with nonservice-wife applicants and wives of servicemen, they hire the nonservice-wife applicants.This is an example of

Accepted Answer

A) gender discrimination. 
B) statistical discrimination. 
C) economic discrimination. 
D) prejudicial discrimination. 
A) gender discrimination. 
B) statistical discrimination. 
C) economic discrimination. 
D) prejudicial discrimination.

Question 10

In the negative income tax framework, a break-even point of $16,000 and a tax rate of 25 percent imply a guarantee of which of the following figures?

Accepted Answer

A) $4,000 
B) $8,000 
C) $12,000 
D) $16,000 
A) $4,000 
B) $8,000 
C) $12,000 
D) $16,000

Question 11

Redistribution programs that reduce poverty and income inequality

Accepted Answer

A) always increase GDP. 
B) always decrease GDP. 
C) usually increase GDP. 
D) usually decrease GDP. 
A) always increase GDP. 
B) always decrease GDP. 
C) usually increase GDP. 
D) usually decrease GDP.

Question 12

The extent of discrimination is

Accepted Answer

A) measured by the differences in incomes. 
B) the reason for two-thirds of the income differential between black male workers and white male workers. 
C) difficult to quantify and controversial. 
D) easily measured for each category of workers. 
A) measured by the differences in incomes. 
B) the reason for two-thirds of the income differential between black male workers and white male workers. 
C) difficult to quantify and controversial. 
D) easily measured for each category of workers.

Question 13

The basic idea behind a negative income tax is to

Accepted Answer

A) help local government agencies deliver more services to the poor. 
B) increase the in-kind income of the poor. 
C) help the poor get job skills. 
D) help the poor without destroying incentives to work. 
A) help local government agencies deliver more services to the poor. 
B) increase the in-kind income of the poor. 
C) help the poor get job skills. 
D) help the poor without destroying incentives to work.

Question 14

Which of the following is not a source of inequality in incomes?

Accepted Answer

A) redistribution of income 
B) differences in intensity of work 
C) differences in ability 
D) risk taking 
A) redistribution of income 
B) differences in intensity of work 
C) differences in ability 
D) risk taking

Question 15

If you fall short of a certain minimum standard of living, you are poor; once you pass this standard, you are no longer poor.This refers to the ____ definition of poverty.

Accepted Answer

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

Question 16

Which of the following is a source of inequality in incomes?

Accepted Answer

A) luck 
B) willingness to take risks 
C) differences in investment in human capital 
D) All of the above are correct. 
A) luck 
B) willingness to take risks 
C) differences in investment in human capital 
D) All of the above are correct.

Question 17

Figure 21-1
  
-In Figure 21-1, a reform in the distribution system that achieves the same distribution with less damage to work incentives is represented by a move from which points?

Accepted Answer

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

Question 18

Assume that a company has several male workers who do not give their full cooperation to female supervisors making them less effective as supervisors.Economists would refer to this type of situation as ____.

Accepted Answer

A) statistical discrimination 
B) discrimination by fellow workers 
C) discrimination by employers 
D) non-discrimination 
A) statistical discrimination 
B) discrimination by fellow workers 
C) discrimination by employers 
D) non-discrimination

Question 19

What is the difference between the absolute and relative concepts of poverty?
 What are the major problems in measuring poverty with them?

Accepted Answer

The absolute concept of poverty is the m

Question 20

There are several reasons why incomes are unequal, including differences in luck, experience, and schooling.

Accepted Answer

A) True 
 B)False

Exam 20: Poverty, Inequality, and Discrimination

A minority candidate may not have the same chances as a white candidate for a job simply based on an employer's misconceptions about minorities.

Roughly what was the median level of household income in the U.S.in 2012?

Tax loopholes serve to

If the United States is to reduce poverty by using a negative income tax, the guaranteed income should be

Economists generally agree that in reducing poverty, policies should be sought that do the

-Consider the economy described by the income distribution in Table 21-1.From this table, we can conclude that the

Discuss the criticisms leveled against the Aid to Families with Dependent Children program.

Two policies to combat discrimination are affirmative action and right-to-work laws.

Employers near military bases are aware that wives generally accompany their servicemen husbands when they are transferred.When presented with nonservice-wife applicants and wives of servicemen, they hire the nonservice-wife applicants.This is an example of

In the negative income tax framework, a break-even point of $16,000 and a tax rate of 25 percent imply a guarantee of which of the following figures?

Redistribution programs that reduce poverty and income inequality

The extent of discrimination is

The basic idea behind a negative income tax is to

Which of the following is not a source of inequality in incomes?

If you fall short of a certain minimum standard of living, you are poor; once you pass this standard, you are no longer poor.This refers to the ____ definition of poverty.

Which of the following is a source of inequality in incomes?

Figure 21-1 -In Figure 21-1, a reform in the distribution system that achieves the same distribution with less damage to work incentives is represented by a move from which points?

Assume that a company has several male workers who do not give their full cooperation to female supervisors making them less effective as supervisors.Economists would refer to this type of situation as ____.

What is the difference between the absolute and relative concepts of poverty? What are the major problems in measuring poverty with them?

There are several reasons why incomes are unequal, including differences in luck, experience, and schooling.

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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