Question 1

The federal income tax in the United States is

Accepted Answer

A)  regressive. 
B)  proportional. 
C)  progressive. 
D)  a flat-rate tax. 
A)  regressive. 
B)  proportional. 
C)  progressive. 
D)  a flat-rate tax.

Question 2

Some economists argue that discrimination based on race and sex cannot lead to persistent wage differentials. What is their argument?

Accepted Answer

In short, wage differentials will lead t

Question 3

Taxes and transfers in the United States

Accepted Answer

A)  shift the Lorenz curve inward. 
B)  shift the Lorenz curve outward. 
C)  cancel out so that the Lorenz curve does not shift. 
D)  shift the Lorenz curve inward at low incomes, outward at high incomes. 
A)  shift the Lorenz curve inward. 
B)  shift the Lorenz curve outward. 
C)  cancel out so that the Lorenz curve does not shift. 
D)  shift the Lorenz curve inward at low incomes, outward at high incomes.

Question 4

-The government in the country of Zappoo is trying to decide which tax plan to implement. The table above shows three alternative plans. If the government decides to implement a progressive income tax, it will implement tax plan ________.

Accepted Answer

A)  A 
B)  B 
C)  C 
D)  A or B 
A)  A 
B)  B 
C)  C 
D)  A or B

Question 5

The demand curve for high-skilled workers lies to the right of the demand curve for low-skilled workers because of the higher productivity of high-skilled workers.

Accepted Answer

A) True 
 B)False

Question 6

The U.S. Gini ratio for income has ________ within recent decades, which means economic inequality has ________.

Accepted Answer

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

Question 7

-The above figure shows the Lorenz curves for four different countries. In which country is income most equally distributed?

Accepted Answer

A)  country A 
B)  country B 
C)  country C 
D)  country D 
A)  country A 
B)  country B 
C)  country C 
D)  country D

Question 8

The table shows the distributions of market income and money income in the United States in 2007.  
-According to the table above, income is redistributed from the ________ of households to the ________ of households.

Accepted Answer

A)  richest 20%; rest 
B)  richest 20%; poorest 20% 
C)  richest 40%; rest 
D)  poorest 40%; richest 20% 
A)  richest 20%; rest 
B)  richest 20%; poorest 20% 
C)  richest 40%; rest 
D)  poorest 40%; richest 20%

Question 9

Which of the following REDUCES equality of income or wealth relative to the market distribution?

Accepted Answer

A)  government payments to the poor 
B)  a regressive income tax 
C)  high taxes on bequests 
D)  non-assortative mating 
A)  government payments to the poor 
B)  a regressive income tax 
C)  high taxes on bequests 
D)  non-assortative mating

Question 10

-The above table shows the distribution of income and wealth in Miseria. What percent of income is earned by the richest 40 percent of the population?

Accepted Answer

A)  20 percent 
B)  30 percent 
C)  55 percent 
D)  70 percent 
A)  20 percent 
B)  30 percent 
C)  55 percent 
D)  70 percent

Question 11

Globalization means that firms recruit top talent from the global talent pool. Globalization means that the payoffs won by the contest winners ________.

Accepted Answer

A)  increase in size 
B)  do not change in size 
C)  might increase, decrease, or not change depending on whether the demand for contests changes by more than, less than, or the same amount as the supply of contests. 
D)  decrease in size 
A)  increase in size 
B)  do not change in size 
C)  might increase, decrease, or not change depending on whether the demand for contests changes by more than, less than, or the same amount as the supply of contests. 
D)  decrease in size

Question 12

Explain how redistributing income creates a deadweight loss.

Accepted Answer

When income is redistributed from a rich

Question 13

By human capital, economists mean

Accepted Answer

A)  machines that replace humans. 
B)  machines engineered to avoid operator injury. 
C)  the accumulated skill and knowledge of humans. 
D)  humans who perform repetitive tasks. 
A)  machines that replace humans. 
B)  machines engineered to avoid operator injury. 
C)  the accumulated skill and knowledge of humans. 
D)  humans who perform repetitive tasks.

Question 14

The mean household income is

Accepted Answer

A)  the income that separates households into two equal groups. 
B)  the most common household income. 
C)  the percentage of total income received by the richest 20 percent of households. 
D)  the average household income. 
A)  the income that separates households into two equal groups. 
B)  the most common household income. 
C)  the percentage of total income received by the richest 20 percent of households. 
D)  the average household income.

Question 15

Which of the following is a reason why the wage rate of high-skilled workers exceeds the wage rate of low-skilled workers?

Accepted Answer

A)  The market for high-skilled workers is more competitive than the market for low-skilled labor. 
B)  The demand for high-skilled workers exceeds the demand for low-skilled workers. 
C)  The number of high-skilled workers exceeds the number of low-skilled workers. 
D)  Low-skilled workers often are in the process of acquiring more human capital. 
A)  The market for high-skilled workers is more competitive than the market for low-skilled labor. 
B)  The demand for high-skilled workers exceeds the demand for low-skilled workers. 
C)  The number of high-skilled workers exceeds the number of low-skilled workers. 
D)  Low-skilled workers often are in the process of acquiring more human capital.

Question 16

Which of the following would show the LEAST amount of inequality?

Accepted Answer

A)  Measured annual income. 
B)  Measured annual wealth. 
C)  Lifetime income. 
D)  Measured annual income and annual wealth are equally distributed and are more equally distributed than lifetime wealth. 
A)  Measured annual income. 
B)  Measured annual wealth. 
C)  Lifetime income. 
D)  Measured annual income and annual wealth are equally distributed and are more equally distributed than lifetime wealth.

Question 17

-The above table shows the distribution of wealth and income in Miseria. Ninety-five percent of the wealth is owned by what percent of the population?

Accepted Answer

A)  20 percent 
B)  40 percent 
C)  60 percent 
D)  95 percent 
A)  20 percent 
B)  40 percent 
C)  60 percent 
D)  95 percent

Question 18

The distribution of wealth is skewed because more families are below the average level of wealth than are above.

Accepted Answer

A) True 
 B)False

Question 19

With respect to redistribution, one reason "The Big Tradeoff" exists is because

Accepted Answer

A)  government programs employ resources that could have been productive elsewhere. 
B)  government policymakers must choose between funding the various programs. 
C)  government programs only employ resources that had no value to society otherwise. 
D)  government programs only pay workers their opportunity cost. 
A)  government programs employ resources that could have been productive elsewhere. 
B)  government policymakers must choose between funding the various programs. 
C)  government programs only employ resources that had no value to society otherwise. 
D)  government programs only pay workers their opportunity cost.

Question 20

The farther the Lorenz curve for income is from the line of equality, the more ________ is distributed.

Accepted Answer

A)  equally wealth 
B)  unequally income 
C)  unequally wealth 
D)  equally income 
A)  equally wealth 
B)  unequally income 
C)  unequally wealth 
D)  equally income

The federal income tax in the United States is

Some economists argue that discrimination based on race and sex cannot lead to persistent wage differentials. What is their argument?

Taxes and transfers in the United States

-The government in the country of Zappoo is trying to decide which tax plan to implement. The table above shows three alternative plans. If the government decides to implement a progressive income tax, it will implement tax plan ________.

The demand curve for high-skilled workers lies to the right of the demand curve for low-skilled workers because of the higher productivity of high-skilled workers.

The U.S. Gini ratio for income has within recent decades, which means economic inequality has .

-The above figure shows the Lorenz curves for four different countries. In which country is income most equally distributed?

The table shows the distributions of market income and money income in the United States in 2007. -According to the table above, income is redistributed from the of households to the of households.

Which of the following REDUCES equality of income or wealth relative to the market distribution?

-The above table shows the distribution of income and wealth in Miseria. What percent of income is earned by the richest 40 percent of the population?

Globalization means that firms recruit top talent from the global talent pool. Globalization means that the payoffs won by the contest winners ________.

Explain how redistributing income creates a deadweight loss.

By human capital, economists mean

The mean household income is

Which of the following is a reason why the wage rate of high-skilled workers exceeds the wage rate of low-skilled workers?

Which of the following would show the LEAST amount of inequality?

-The above table shows the distribution of wealth and income in Miseria. Ninety-five percent of the wealth is owned by what percent of the population?

The distribution of wealth is skewed because more families are below the average level of wealth than are above.

With respect to redistribution, one reason "The Big Tradeoff" exists is because

The farther the Lorenz curve for income is from the line of equality, the more ________ is distributed.

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

The federal income tax in the United States is

Some economists argue that discrimination based on race and sex cannot lead to persistent wage differentials. What is their argument?

Taxes and transfers in the United States

-The government in the country of Zappoo is trying to decide which tax plan to implement. The table above shows three alternative plans. If the government decides to implement a progressive income tax, it will implement tax plan ________.

The demand curve for high-skilled workers lies to the right of the demand curve for low-skilled workers because of the higher productivity of high-skilled workers.

The U.S. Gini ratio for income has ________ within recent decades, which means economic inequality has ________.

-The above figure shows the Lorenz curves for four different countries. In which country is income most equally distributed?

The table shows the distributions of market income and money income in the United States in 2007. -According to the table above, income is redistributed from the ________ of households to the ________ of households.

Which of the following REDUCES equality of income or wealth relative to the market distribution?

-The above table shows the distribution of income and wealth in Miseria. What percent of income is earned by the richest 40 percent of the population?

Globalization means that firms recruit top talent from the global talent pool. Globalization means that the payoffs won by the contest winners ________.

Explain how redistributing income creates a deadweight loss.

By human capital, economists mean

The mean household income is

Which of the following is a reason why the wage rate of high-skilled workers exceeds the wage rate of low-skilled workers?

Which of the following would show the LEAST amount of inequality?

-The above table shows the distribution of wealth and income in Miseria. Ninety-five percent of the wealth is owned by what percent of the population?

The distribution of wealth is skewed because more families are below the average level of wealth than are above.

With respect to redistribution, one reason "The Big Tradeoff" exists is because

The farther the Lorenz curve for income is from the line of equality, the more ________ is distributed.

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

The U.S. Gini ratio for income has within recent decades, which means economic inequality has .

The table shows the distributions of market income and money income in the United States in 2007. -According to the table above, income is redistributed from the of households to the of households.