Question 1

-In the above figure, the straight line between the lower left corner and the upper right corner shows

Accepted Answer

A)  perfect equality in income distribution. 
B)  perfect inequality in income distribution. 
C)  that wealth rises as income rises. 
D)  that household size rises as income rises. 
A)  perfect equality in income distribution. 
B)  perfect inequality in income distribution. 
C)  that wealth rises as income rises. 
D)  that household size rises as income rises.

Question 2

High-skilled workers earn more than low-skilled workers in part because

Accepted Answer

A)  high-skilled workers have higher value of marginal products. 
B)  of government legislation. 
C)  the supply of high-skilled workers is more elastic. 
D)  the demand for high-skilled workers is more elastic. 
A)  high-skilled workers have higher value of marginal products. 
B)  of government legislation. 
C)  the supply of high-skilled workers is more elastic. 
D)  the demand for high-skilled workers is more elastic.

Question 3

-In the figure above, the second poorest 20 percent of households receive ________ of total income.

Accepted Answer

A)  5 percent 
B)  10 percent 
C)  15 percent 
D)  20 percent 
A)  5 percent 
B)  10 percent 
C)  15 percent 
D)  20 percent

Question 4

Over the past decade, the incomes of the top 1 percent have increased disproportionately higher than that of the middle class. These changes mean that the Lorenz curve moved ________ the 45 degree line and the Gini ratio has ________.

Accepted Answer

A)  closer to; decreased 
B)  closer to; increased 
C)  further away from; decreased 
D)  further away from; increased 
A)  closer to; decreased 
B)  closer to; increased 
C)  further away from; decreased 
D)  further away from; increased

Question 5

If income is equally distributed, the Gini ratio is zero.

Accepted Answer

A) True 
 B)False

Question 6

-In the above table, which tax plan is regressive?

Accepted Answer

A)  only plan A 
B)  only plan B 
C)  only plan C 
D)  both plan A and plan C 
A)  only plan A 
B)  only plan B 
C)  only plan C 
D)  both plan A and plan C

Question 7

-In the figure above, the middle fifth of all households receive what share of all income?

Accepted Answer

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

Question 8

An income tax for which the average tax rate is constant called a

Accepted Answer

A)  regressive income tax. 
B)  proportional income tax. 
C)  marginal income tax. 
D)  progressive income tax. 
A)  regressive income tax. 
B)  proportional income tax. 
C)  marginal income tax. 
D)  progressive income tax.

Question 9

Over the period from 1971 to 2012, the U.S. Gini ratio for household income ________, which means income inequality in the United States ________.

Accepted Answer

A)  increased; increased 
B)  increased; decreased 
C)  decreased; increased 
D)  decreased; decreased 
A)  increased; increased 
B)  increased; decreased 
C)  decreased; increased 
D)  decreased; decreased

Question 10

The biggest single factor affecting family income distribution is the

Accepted Answer

A)  householder's age. 
B)  householder's marital status. 
C)  household size. 
D)  householder's education. 
A)  householder's age. 
B)  householder's marital status. 
C)  household size. 
D)  householder's education.

Question 11

In the United States, globalization has caused the demand for unskilled labor to ________ and the demand for skilled labor to ________.

Accepted Answer

A)  decrease; increase 
B)  decrease; decrease 
C)  increase; increase 
D)  increase; decrease 
A)  decrease; increase 
B)  decrease; decrease 
C)  increase; increase 
D)  increase; decrease

Question 12

What is the Gini ratio?

Accepted Answer

The Gini ratio is based on the

Question 13

Discrimination ________ the group being discriminated against and ________ the group being favored.

Accepted Answer

A)  decreases the demand for; increases the demand for 
B)  increases the demand for; decreases the demand for 
C)  decreases the supply of; increases the supply of 
D)  increases the supply of; decreases the supply of 
A)  decreases the demand for; increases the demand for 
B)  increases the demand for; decreases the demand for 
C)  decreases the supply of; increases the supply of 
D)  increases the supply of; decreases the supply of

Question 14

-In the figure above, in which country do the lowest-income 30 percent of households have the highest fraction of the nation's income?

Accepted Answer

A)  Country A 
B)  Country B 
C)  Country C 
D)  It is impossible to answer the question without more information. 
A)  Country A 
B)  Country B 
C)  Country C 
D)  It is impossible to answer the question without more information.

Question 15

The more that Clayton earns, the higher is his average tax rate. Clayton faces a ________ income tax.

Accepted Answer

A)  regressive 
B)  proportional 
C)  progressive 
D)  flat-rate 
A)  regressive 
B)  proportional 
C)  progressive 
D)  flat-rate

Question 16

In recent years, information technology such as computers and scanners have been a ________ for low-skilled labor and have led to ________ wage rates for low-skilled workers.

Accepted Answer

A)  substitute; higher 
B)  substitute; lower 
C)  complement; higher 
D)  complement; lower 
A)  substitute; higher 
B)  substitute; lower 
C)  complement; higher 
D)  complement; lower

Question 17

The demand curve for low-skilled labor lies to the left of the demand curve for high-skilled labor because

Accepted Answer

A)  there are more high-skilled workers than low-skilled workers. 
B)  high-skilled workers require more compensation than low-skilled workers. 
C)  high-skilled workers are more productive than low-skilled labor. 
D)  firms do not see any difference between high-skilled labor and low-skilled labor. 
A)  there are more high-skilled workers than low-skilled workers. 
B)  high-skilled workers require more compensation than low-skilled workers. 
C)  high-skilled workers are more productive than low-skilled labor. 
D)  firms do not see any difference between high-skilled labor and low-skilled labor.

Question 18

The decrease in the incentive to work created by welfare payments programs

Accepted Answer

A)  only affects low income taxpayers. 
B)  only affects taxpayers but not welfare recipients. 
C)  only affects high income executives. 
D)  affects both taxpayers and welfare recipients. 
A)  only affects low income taxpayers. 
B)  only affects taxpayers but not welfare recipients. 
C)  only affects high income executives. 
D)  affects both taxpayers and welfare recipients.

Question 19

Differences in human capital and discrimination can help explain economic inequality.

Accepted Answer

A) True 
 B)False

Question 20

The distribution of income in the United States is characterized by the following relationship between the mean, median, and mode incomes

Accepted Answer

A)  mean income < median income < mode income. 
B)  mode income < median income < mean income. 
C)  median income < mean income < mode income. 
D)  mode income < mean income < median income. 
A)  mean income < median income < mode income. 
B)  mode income < median income < mean income. 
C)  median income < mean income < mode income. 
D)  mode income < mean income < median income.

-In the above figure, the straight line between the lower left corner and the upper right corner shows

High-skilled workers earn more than low-skilled workers in part because

-In the figure above, the second poorest 20 percent of households receive ________ of total income.

Over the past decade, the incomes of the top 1 percent have increased disproportionately higher than that of the middle class. These changes mean that the Lorenz curve moved the 45 degree line and the Gini ratio has .

If income is equally distributed, the Gini ratio is zero.

-In the above table, which tax plan is regressive?

-In the figure above, the middle fifth of all households receive what share of all income?

An income tax for which the average tax rate is constant called a

Over the period from 1971 to 2012, the U.S. Gini ratio for household income , which means income inequality in the United States .

The biggest single factor affecting family income distribution is the

In the United States, globalization has caused the demand for unskilled labor to and the demand for skilled labor to .

What is the Gini ratio?

Discrimination the group being discriminated against and the group being favored.

$-In the figure above, in which country do the lowest-income 30 percent of households have the highest fraction of the nation's income?$ -In the figure above, in which country do the lowest-income 30 percent of households have the highest fraction of the nation's income?

The more that Clayton earns, the higher is his average tax rate. Clayton faces a ________ income tax.

In recent years, information technology such as computers and scanners have been a for low-skilled labor and have led to wage rates for low-skilled workers.

The demand curve for low-skilled labor lies to the left of the demand curve for high-skilled labor because

The decrease in the incentive to work created by welfare payments programs

Differences in human capital and discrimination can help explain economic inequality.

The distribution of income in the United States is characterized by the following relationship between the mean, median, and mode incomes

What Is Economics

The Economic Problem

Demand and Supply

Elasticity

Efficiency and Equity

Government 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

Public Choices, Public Goods, and Healthcare

Externalities

Markets for Factors of Production

Uncertainty and Information

Filters

Exam 19: Economic Inequality

-In the above figure, the straight line between the lower left corner and the upper right corner shows

High-skilled workers earn more than low-skilled workers in part because

-In the figure above, the second poorest 20 percent of households receive ________ of total income.

Over the past decade, the incomes of the top 1 percent have increased disproportionately higher than that of the middle class. These changes mean that the Lorenz curve moved ________ the 45 degree line and the Gini ratio has ________.

If income is equally distributed, the Gini ratio is zero.

-In the above table, which tax plan is regressive?

-In the figure above, the middle fifth of all households receive what share of all income?

An income tax for which the average tax rate is constant called a

Over the period from 1971 to 2012, the U.S. Gini ratio for household income ________, which means income inequality in the United States ________.

The biggest single factor affecting family income distribution is the

In the United States, globalization has caused the demand for unskilled labor to ________ and the demand for skilled labor to ________.

What is the Gini ratio?

Discrimination ________ the group being discriminated against and ________ the group being favored.

-In the figure above, in which country do the lowest-income 30 percent of households have the highest fraction of the nation's income?

The more that Clayton earns, the higher is his average tax rate. Clayton faces a ________ income tax.

In recent years, information technology such as computers and scanners have been a ________ for low-skilled labor and have led to ________ wage rates for low-skilled workers.

The demand curve for low-skilled labor lies to the left of the demand curve for high-skilled labor because

The decrease in the incentive to work created by welfare payments programs

Differences in human capital and discrimination can help explain economic inequality.

The distribution of income in the United States is characterized by the following relationship between the mean, median, and mode incomes

What Is Economics

The Economic Problem

Demand and Supply

Elasticity

Efficiency and Equity

Government 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

Public Choices, Public Goods, and Healthcare

Externalities

Markets for Factors of Production

Uncertainty and Information

Filters

Over the past decade, the incomes of the top 1 percent have increased disproportionately higher than that of the middle class. These changes mean that the Lorenz curve moved the 45 degree line and the Gini ratio has .

Over the period from 1971 to 2012, the U.S. Gini ratio for household income , which means income inequality in the United States .

In the United States, globalization has caused the demand for unskilled labor to and the demand for skilled labor to .

Discrimination the group being discriminated against and the group being favored.

$-In the figure above, in which country do the lowest-income 30 percent of households have the highest fraction of the nation's income?$ -In the figure above, in which country do the lowest-income 30 percent of households have the highest fraction of the nation's income?

In recent years, information technology such as computers and scanners have been a for low-skilled labor and have led to wage rates for low-skilled workers.