Question 1

When government redistributes income, one dollar collected from a rich person translates into ________ received by a poor person.

Accepted Answer

A) exactly one dollar 
B) less than one dollar 
C) more than one dollar 
D) zero dollars 
E) either exactly one dollar or, with some programs, more than one dollar 
A) exactly one dollar 
B) less than one dollar 
C) more than one dollar 
D) zero dollars 
E) either exactly one dollar or, with some programs, more than one dollar

Question 2

In 2010, the poverty rate in the United States level was approximately ________ percent.

Accepted Answer

A) 3 
B) 15 
C) 32 
D) 20 
E) 26 
A) 3 
B) 15 
C) 32 
D) 20 
E) 26

Question 3

What economic effect works to eliminate sex and race discrimination?

Accepted Answer

A) Firms hire only the preferred races and sex. 
B) Lower paid races and sexes give up working and drop out of the labor supply. 
C) Customers who discriminate pay higher prices to buy from preferred races and sex. 
D) The value of marginal product of the less preferred races and sexes eventually increases. 
E) Lower paid races and sexes decrease their demand for goods and services. 
A) Firms hire only the preferred races and sex. 
B) Lower paid races and sexes give up working and drop out of the labor supply. 
C) Customers who discriminate pay higher prices to buy from preferred races and sex. 
D) The value of marginal product of the less preferred races and sexes eventually increases. 
E) Lower paid races and sexes decrease their demand for goods and services.

Question 4

How does an increase in the cost to acquire a skill affect the vertical distance between the supply curves of high-skilled and low-skilled workers?

Accepted Answer

The vertical distance between the supply

Question 5

In the United States since 1970 income has become ________ equally distributed and since the 1970s economic mobility among income groups has ________.

Accepted Answer

A) more; increased 
B) more; decreased 
C) less; increased 
D) less; decreased 
E) None of the above answers is correct because economic mobility among income groups cannot be measured. 
A) more; increased 
B) more; decreased 
C) less; increased 
D) less; decreased 
E) None of the above answers is correct because economic mobility among income groups cannot be measured.

Question 6

Which is distributed more equally: income or wealth?

Accepted Answer

The income distribution is much more equ

Question 7

Of the following types of income tax systems, the one that provides the greatest amount of redistribution from the rich to the poor is a

Accepted Answer

A) progressive income tax. 
B) proportional income tax. 
C) regressive income tax. 
D) flat-rate income tax. 
E) money-income tax. 
A) progressive income tax. 
B) proportional income tax. 
C) regressive income tax. 
D) flat-rate income tax. 
E) money-income tax.

Question 8

What is the difference between wealth and income?

Accepted Answer

Wealth is a stock of assets, that is, we

Question 9

A ________ tax is one that taxes income at an average rate that increases with the level of income.

Accepted Answer

A) regressive 
B) progressive 
C) flat 
D) consumption 
E) proportional 
A) regressive 
B) progressive 
C) flat 
D) consumption 
E) proportional

Question 10

The wage rate that high-skilled workers receive is ________ the wage rate that low-skill workers receive.

Accepted Answer

A) greater than or equal to 
B) equal to 
C) less than or equal to 
D) greater than 
E) less than 
A) greater than or equal to 
B) equal to 
C) less than or equal to 
D) greater than 
E) less than

Question 11

If the Lorenz curve for income moves upward toward the 45° line, then the

Accepted Answer

A) distribution of income has become more unequal. 
B) distribution of income has become more equal. 
C) mean (average)household income increased. 
D) total household income increased. 
E) total household income decreased. 
A) distribution of income has become more unequal. 
B) distribution of income has become more equal. 
C) mean (average)household income increased. 
D) total household income increased. 
E) total household income decreased.

Question 12

The table gives the distribution of income in Miseria.
-What percent of income is earned by the richest forty percent?

Accepted Answer

A) 5 percent 
B) 20 percent 
C) 70 percent 
D) 55 percent 
E) More information is needed to answer the question. 
A) 5 percent 
B) 20 percent 
C) 70 percent 
D) 55 percent 
E) More information is needed to answer the question.

Question 13

The vertical distance between the supply curves for neurosurgeons and the supply curve for fast-food servers

Accepted Answer

A) represents the difference in the demand for these two occupations. 
B) is the compensation that neurosurgeons require for the cost of acquiring this skill. 
C) is the difference in the value of marginal product of the two professions. 
D) is the difference in on-the-job training. 
E) equals the difference in the equilibrium wages paid these two professions. 
A) represents the difference in the demand for these two occupations. 
B) is the compensation that neurosurgeons require for the cost of acquiring this skill. 
C) is the difference in the value of marginal product of the two professions. 
D) is the difference in on-the-job training. 
E) equals the difference in the equilibrium wages paid these two professions.

Question 14

Three types of income maintenance programs used by the United States are

Accepted Answer

A) income taxes, Social Security, and the earned income tax credit. 
B) Social Security programs, OASDHI, and income taxes. 
C) Social Security programs, unemployment compensation, and welfare programs. 
D) welfare programs, income taxes, and the earned income tax credit. 
E) income taxes, Social Security, and subsidized services. 
A) income taxes, Social Security, and the earned income tax credit. 
B) Social Security programs, OASDHI, and income taxes. 
C) Social Security programs, unemployment compensation, and welfare programs. 
D) welfare programs, income taxes, and the earned income tax credit. 
E) income taxes, Social Security, and subsidized services.

Question 15

The figure above shows Lorenz curves for a nation.
-Based on the figure above,

Accepted Answer

A) the average household's income exceeds its wealth. 
B) the average household's wealth exceeds its income. 
C) income is distributed more equally than wealth. 
D) wealth is distributed more equally than income. 
E) Both answers A and C are correct. 
A) the average household's income exceeds its wealth. 
B) the average household's wealth exceeds its income. 
C) income is distributed more equally than wealth. 
D) wealth is distributed more equally than income. 
E) Both answers A and C are correct.

Question 16

The table gives the distribution of income in Miseria.
-What percent of income is earned by the richest 60 percent of the population?

Accepted Answer

A) 25 percent 
B) 30 percent 
C) 55 percent 
D) 85 percent 
E) More information is needed to answer the question. 
A) 25 percent 
B) 30 percent 
C) 55 percent 
D) 85 percent 
E) More information is needed to answer the question.

Question 17

In 2004 the wealthiest 1 percent of all U.S.households owned what percentage of total wealth?

Accepted Answer

A) more than 30 percent 
B) less than 10 percent 
C) more than 40 percent 
D) more than 50 percent 
E) more than 45 percent 
A) more than 30 percent 
B) less than 10 percent 
C) more than 40 percent 
D) more than 50 percent 
E) more than 45 percent

Question 18

High-skilled workers earn more relative to low-skilled workers because the demand for high-skilled workers is ________ that for low-skilled workers and the supply is ________ that for low-skilled workers.

Accepted Answer

A) greater than; greater than 
B) greater than; lower than 
C) lower than; greater than 
D) lower than; lower than 
E) greater than; the same as 
A) greater than; greater than 
B) greater than; lower than 
C) lower than; greater than 
D) lower than; lower than 
E) greater than; the same as

Question 19

The wage differential between high-skilled and low-skilled workers is the result of

Accepted Answer

A) a difference in the value of marginal product. 
B) the cost of acquiring skills. 
C) a negative income tax. 
D) Both answers A and B are correct. 
E) Both answers B and C are correct. 
A) a difference in the value of marginal product. 
B) the cost of acquiring skills. 
C) a negative income tax. 
D) Both answers A and B are correct. 
E) Both answers B and C are correct.

Question 20

The three major types of income maintenance programs are

Accepted Answer

A) Social Security programs, unemployment compensation, and welfare programs. 
B) food stamps, unemployment compensation, and agricultural price supports. 
C) student loans, rent control, and welfare programs. 
D) corporate welfare, minimum wages, and affirmative action laws. 
E) minimum wages, food stamps, and student loans. 
A) Social Security programs, unemployment compensation, and welfare programs. 
B) food stamps, unemployment compensation, and agricultural price supports. 
C) student loans, rent control, and welfare programs. 
D) corporate welfare, minimum wages, and affirmative action laws. 
E) minimum wages, food stamps, and student loans.

When government redistributes income, one dollar collected from a rich person translates into ________ received by a poor person.

In 2010, the poverty rate in the United States level was approximately ________ percent.

What economic effect works to eliminate sex and race discrimination?

How does an increase in the cost to acquire a skill affect the vertical distance between the supply curves of high-skilled and low-skilled workers?

In the United States since 1970 income has become equally distributed and since the 1970s economic mobility among income groups has .

Which is distributed more equally: income or wealth?

Of the following types of income tax systems, the one that provides the greatest amount of redistribution from the rich to the poor is a

What is the difference between wealth and income?

A ________ tax is one that taxes income at an average rate that increases with the level of income.

The wage rate that high-skilled workers receive is ________ the wage rate that low-skill workers receive.

If the Lorenz curve for income moves upward toward the 45° line, then the

The table gives the distribution of income in Miseria. -What percent of income is earned by the richest forty percent?

The vertical distance between the supply curves for neurosurgeons and the supply curve for fast-food servers

Three types of income maintenance programs used by the United States are

The figure above shows Lorenz curves for a nation. -Based on the figure above,

The table gives the distribution of income in Miseria. -What percent of income is earned by the richest 60 percent of the population?

In 2004 the wealthiest 1 percent of all U.S.households owned what percentage of total wealth?

High-skilled workers earn more relative to low-skilled workers because the demand for high-skilled workers is that for low-skilled workers and the supply is that for low-skilled workers.

The wage differential between high-skilled and low-skilled workers is the result of

The three major types of income maintenance programs are

Getting Started

The Usand Global Economies

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Taxes

Global Markets in Action

Externalities

Public Goods and Common Resources

Markets With Private Information

Consumer Choice and Demand

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Markets for Factors of Production

Filters

Exam 20: Economic Inequality

When government redistributes income, one dollar collected from a rich person translates into ________ received by a poor person.

In 2010, the poverty rate in the United States level was approximately ________ percent.

What economic effect works to eliminate sex and race discrimination?

How does an increase in the cost to acquire a skill affect the vertical distance between the supply curves of high-skilled and low-skilled workers?

In the United States since 1970 income has become ________ equally distributed and since the 1970s economic mobility among income groups has ________.

Which is distributed more equally: income or wealth?

Of the following types of income tax systems, the one that provides the greatest amount of redistribution from the rich to the poor is a

What is the difference between wealth and income?

A ________ tax is one that taxes income at an average rate that increases with the level of income.

The wage rate that high-skilled workers receive is ________ the wage rate that low-skill workers receive.

If the Lorenz curve for income moves upward toward the 45° line, then the

The table gives the distribution of income in Miseria. -What percent of income is earned by the richest forty percent?

The vertical distance between the supply curves for neurosurgeons and the supply curve for fast-food servers

Three types of income maintenance programs used by the United States are

The figure above shows Lorenz curves for a nation. -Based on the figure above,

The table gives the distribution of income in Miseria. -What percent of income is earned by the richest 60 percent of the population?

In 2004 the wealthiest 1 percent of all U.S.households owned what percentage of total wealth?

High-skilled workers earn more relative to low-skilled workers because the demand for high-skilled workers is ________ that for low-skilled workers and the supply is ________ that for low-skilled workers.

The wage differential between high-skilled and low-skilled workers is the result of

The three major types of income maintenance programs are

Getting Started

The Usand Global Economies

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Taxes

Global Markets in Action

Externalities

Public Goods and Common Resources

Markets With Private Information

Consumer Choice and Demand

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Markets for Factors of Production

Filters

In the United States since 1970 income has become equally distributed and since the 1970s economic mobility among income groups has .

High-skilled workers earn more relative to low-skilled workers because the demand for high-skilled workers is that for low-skilled workers and the supply is that for low-skilled workers.