Question 1

Use the figure below to answer the following questions.
   
Figure 19.1.3
-In Figure 19.1.3, the poorest 20 percent of all families receive what share of income?

Accepted Answer

A) 10 percent 
B) 20 percent 
C) 30 percent 
D) 40 percent 
E) 50 percent 
A) 10 percent 
B) 20 percent 
C) 30 percent 
D) 40 percent 
E) 50 percent A

Question 2

Use the figure below to answer the following questions.
   
Figure 19.3.6
-Refer to Figure 19.3.6. If this is the market for a group of workers who are discriminated against by customers and point A represents the equilibrium without discrimination, which point represents the equilibrium for the workers who are discriminated against?

Accepted Answer

A) D 
B) B 
C) I 
D) C 
E) H 
A) D 
B) B 
C) I 
D) C 
E) H E

Question 3

Use the figure below to answer the following questions.
   
Figure 19.1.2
-Refer to Figure 19.3.1. At the equilibrium wage rates,

Accepted Answer

A) more high-skilled workers will be hired than low-skilled workers. 
B) more low-skilled workers will be hired than high-skilled workers. 
C) the horizontal distance between the two demand curves is the compensation for the cost of acquiring human capital. 
D) the horizontal distance between the two supply curves is the value of marginal product of skill. 
E) value of marginal product is maximized. 
A) more high-skilled workers will be hired than low-skilled workers. 
B) more low-skilled workers will be hired than high-skilled workers. 
C) the horizontal distance between the two demand curves is the compensation for the cost of acquiring human capital. 
D) the horizontal distance between the two supply curves is the value of marginal product of skill. 
E) value of marginal product is maximized. A

Question 4

Use the table below to answer the following questions.
Table 19.4.1
  
-In Table 19.4.1, which tax plan is progressive?

Accepted Answer

A) Plan A 
B) Plan B 
C) Plan C 
D) Plan D 
E) impossible to calculate without additional information 
A) Plan A 
B) Plan B 
C) Plan C 
D) Plan D 
E) impossible to calculate without additional information

Question 5

Discrimination ________ workers in the group being discriminated against and ________ workers in the group being favoured.

Accepted Answer

A) decreases the supply of; increases the supply of 
B) decreases the demand for and the supply of; increases the demand for and the supply of 
C) does not change the demand for; increases the demand for 
D) decreases the demand for; increases the demand for 
E) decreases the demand for; does not change the demand for 
A) decreases the supply of; increases the supply of 
B) decreases the demand for and the supply of; increases the demand for and the supply of 
C) does not change the demand for; increases the demand for 
D) decreases the demand for; increases the demand for 
E) decreases the demand for; does not change the demand for

Question 6

Between 1976 and 2011, the Canadian Gini ratio ________, which means income inequality in Canada ________.

Accepted Answer

A) increased; increased 
B) increased; decreased 
C) increased; did not change 
D) decreased; decreased 
E) decreased; did not change 
A) increased; increased 
B) increased; decreased 
C) increased; did not change 
D) decreased; decreased 
E) decreased; did not change

Question 7

Which diagram is used by economists to illustrate the distribution of income or wealth?

Accepted Answer

A) Lorenz curve 
B) normal bell-shaped distribution 
C) wage differential curve 
D) low-income cut-off curve 
E) marginal revenue product diagram 
A) Lorenz curve 
B) normal bell-shaped distribution 
C) wage differential curve 
D) low-income cut-off curve 
E) marginal revenue product diagram

Question 8

Use the figure below to answer the following questions.
   
Figure 19.3.6
-Refer to Figure 19.3.6. If this is the market for a group of workers who are discriminated in favour of by consumers and point A represents the equilibrium without discrimination, which point represents the equilibrium for the workers who receive favourable discrimination?

Accepted Answer

A) D 
B) B 
C) I 
D) C 
E) H 
A) D 
B) B 
C) I 
D) C 
E) H

Question 9

Use the figure below to answer the following questions.
   
Figure 19.1.1
-Refer to Figure 19.1.1. The poorest 20 percent of households receive what share of total income?

Accepted Answer

A) 40 percent 
B) 60 percent 
C) 20 percent 
D) 5 percent 
E) 10 percent 
A) 40 percent 
B) 60 percent 
C) 20 percent 
D) 5 percent 
E) 10 percent

Question 10

The main reason that wealth inequality persists across generations is that

Accepted Answer

A) people tend to marry within their own socioeconomic class. 
B) intergenerational transfers can only increase wealth inequality. 
C) there are differences between households in their degree of specialization. 
D) rich families have equal wealth over the life cycle. 
E) taxes are too high for the lower quintiles. 
A) people tend to marry within their own socioeconomic class. 
B) intergenerational transfers can only increase wealth inequality. 
C) there are differences between households in their degree of specialization. 
D) rich families have equal wealth over the life cycle. 
E) taxes are too high for the lower quintiles.

Question 11

Use the figure below to answer the following questions.
   
Figure 19.1.3
-The curve in Figure 19.1.3 is the

Accepted Answer

A) line of fairness. 
B) line of equality. 
C) learning curve. 
D) wage differential curve. 
E) Lorenz curve. 
A) line of fairness. 
B) line of equality. 
C) learning curve. 
D) wage differential curve. 
E) Lorenz curve.

Question 12

Household characteristics that stand out when determining the incidence of poverty include all of the following except

Accepted Answer

A) household type. 
B) education. 
C) age of householder. 
D) ethnic background. 
E) number of children. 
A) household type. 
B) education. 
C) age of householder. 
D) ethnic background. 
E) number of children.

Question 13

In 2011, the middle 20 percent of households received what percentage of total Canadian after-tax income?

Accepted Answer

A) 10.6 percent 
B) 16.3 percent 
C) 25 percent 
D) 43 percent 
E) 52 percent 
A) 10.6 percent 
B) 16.3 percent 
C) 25 percent 
D) 43 percent 
E) 52 percent

Question 14

Technological change ________ the demand for high-skilled workers and ________ the demand for low-skilled workers. As a result, income inequality ________.

Accepted Answer

A) increases; decreases; decreases 
B) increases; decreases; increases 
C) increases; increases; decreases 
D) decreases; decreases; increases 
E) increases; does not change; increases 
A) increases; decreases; decreases 
B) increases; decreases; increases 
C) increases; increases; decreases 
D) decreases; decreases; increases 
E) increases; does not change; increases

Question 15

The demand for high-skilled labour is derived from the

Accepted Answer

A) exploitation of the low-skilled workers. 
B) marginal cost of production. 
C) lower wage of the labour. 
D) supply of the high-skilled labourers. 
E) value of marginal product of high-skilled labour. 
A) exploitation of the low-skilled workers. 
B) marginal cost of production. 
C) lower wage of the labour. 
D) supply of the high-skilled labourers. 
E) value of marginal product of high-skilled labour.

Question 16

Joe earns $100,000 per year. He pays a tax rate of 28 percent on the first $60,000 of income and a tax rate of 15 percent on income above $60,000. This tax system is an example of a ________ income tax.

Accepted Answer

A) progressive 
B) proportional 
C) regressive 
D) flat 
E) Both B and D are correct. 
A) progressive 
B) proportional 
C) regressive 
D) flat 
E) Both B and D are correct.

Question 17

Which of the following does Statistics Canada use to provide measures of economic inequality?

Accepted Answer

A) market income only 
B) market income and after-tax income only 
C) after-tax income only 
D) total market and after-tax income only 
E) market income, total income, and after-tax income 
A) market income only 
B) market income and after-tax income only 
C) after-tax income only 
D) total market and after-tax income only 
E) market income, total income, and after-tax income

Question 18

Use the figure below to answer the following question.
   
Figure 19.3.4
-Refer to Figure 19.3.4. At an employment level of 30 hours per week, the compensation required for the cost of acquiring human capital is

Accepted Answer

A) $0. 
B) $2 an hour. 
C) $4 an hour. 
D) $6 an hour. 
E) cannot be determined without knowing the demand for labour. 
A) $0. 
B) $2 an hour. 
C) $4 an hour. 
D) $6 an hour. 
E) cannot be determined without knowing the demand for labour.

Question 19

A generation that is wealthy and leaves assets to another generation that is not wealthy

Accepted Answer

A) increases the inequality of the income distribution. 
B) decreases the inequality of the income distribution. 
C) does not change the distribution of income. 
D) proves that inheritance taxes are needed. 
E) is improving efficiency. 
A) increases the inequality of the income distribution. 
B) decreases the inequality of the income distribution. 
C) does not change the distribution of income. 
D) proves that inheritance taxes are needed. 
E) is improving efficiency.

Question 20

A Lorenz curve illustrates the distribution of income by graphing the

Accepted Answer

A) cumulative percentage of income received and the cumulative percentage of households. 
B) chance of a family earning a specific income. 
C) wealth earned by a cumulative percentage of households. 
D) cumulative frequency of specific incomes. 
E) percentage change in income for a percentage change in population. 
A) cumulative percentage of income received and the cumulative percentage of households. 
B) chance of a family earning a specific income. 
C) wealth earned by a cumulative percentage of households. 
D) cumulative frequency of specific incomes. 
E) percentage change in income for a percentage change in population.

Exam 19: Economic Inequality

Use the figure below to answer the following questions. Figure 19.1.3 -In Figure 19.1.3, the poorest 20 percent of all families receive what share of income?

Use the figure below to answer the following questions. Figure 19.1.2 -Refer to Figure 19.3.1. At the equilibrium wage rates,

Use the table below to answer the following questions. Table 19.4.1 -In Table 19.4.1, which tax plan is progressive?

Discrimination ________ workers in the group being discriminated against and ________ workers in the group being favoured.

Between 1976 and 2011, the Canadian Gini ratio ________, which means income inequality in Canada ________.

Which diagram is used by economists to illustrate the distribution of income or wealth?

Use the figure below to answer the following questions. Figure 19.1.1 -Refer to Figure 19.1.1. The poorest 20 percent of households receive what share of total income?

The main reason that wealth inequality persists across generations is that

Use the figure below to answer the following questions. Figure 19.1.3 -The curve in Figure 19.1.3 is the

Household characteristics that stand out when determining the incidence of poverty include all of the following except

In 2011, the middle 20 percent of households received what percentage of total Canadian after-tax income?

Technological change ________ the demand for high-skilled workers and ________ the demand for low-skilled workers. As a result, income inequality ________.

The demand for high-skilled labour is derived from the

Joe earns $100,000 per year. He pays a tax rate of 28 percent on the first $60,000 of income and a tax rate of 15 percent on income above $60,000. This tax system is an example of a ________ income tax.

Which of the following does Statistics Canada use to provide measures of economic inequality?

Use the figure below to answer the following question. Figure 19.3.4 -Refer to Figure 19.3.4. At an employment level of 30 hours per week, the compensation required for the cost of acquiring human capital is

A generation that is wealthy and leaves assets to another generation that is not wealthy

A Lorenz curve illustrates the distribution of income by graphing the

What Is Economics

The Economic Problem

Demand and Supply

Elasticity

Efficiency and Equity

Governments Actions in Markets

Global Markets in Action

Utility and Demand

Possibilities, Preferences, and Choices

Organizing Production

Output and Costs

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Externalities

Public Goods and Common Resources

Markets for Factors of Production

Measuring Gdp and Economic Growth

Monitoring Jobs and Inflation

Economic Growth

Finance, Saving, and Investment

Money, the Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers

The Business Cycle, Inflation, and Deflation

Fiscal Policy

Monetary Policy

Macro Only: International Trade Policy

Filters

Discrimination workers in the group being discriminated against and workers in the group being favoured.

Between 1976 and 2011, the Canadian Gini ratio , which means income inequality in Canada .

Technological change the demand for high-skilled workers and the demand for low-skilled workers. As a result, income inequality .