Question 1

A tax is progressive if the average tax rate

Accepted Answer

A)  increases as income increases. 
B)  increases as income decreases. 
C)  is negative. 
D)  is positive. 
A)  increases as income increases. 
B)  increases as income decreases. 
C)  is negative. 
D)  is positive.

Question 2

If both rich and poor families pay 25 percent of their income in taxes, the tax scheme is ________.

Accepted Answer

A)  proportional 
B)  regressive 
C)  negative 
D)  progressive 
A)  proportional 
B)  regressive 
C)  negative 
D)  progressive

Question 3

How has income inequality changed in recent years? What factors account for the changes?

Accepted Answer

Over the last couple of decades, income

Question 4

What is the difference between market income and money income? Which is more equally distributed?

Accepted Answer

Market income is the income the househol

Question 5

-The above figure shows the Lorenz curve for wealth for the nation of Rusha. If the government were to confiscate half of the wealth from the wealthiest twenty percent of the population and give it to the poorest twenty percent, then

Accepted Answer

A)  wealth distribution would be more equal. 
B)  wealth distribution would be unchanged. 
C)  wealth distribution would be more unequal. 
D)  the Lorenz curve would shift rightward. 
A)  wealth distribution would be more equal. 
B)  wealth distribution would be unchanged. 
C)  wealth distribution would be more unequal. 
D)  the Lorenz curve would shift rightward.

Question 6

-In the figure above, the quantity of high-skilled labor employed is

Accepted Answer

A)  2,000 hours per day. 
B)  4,000 hours per day. 
C)  5,000 hours per day. 
D)  7,000 hours per day. 
A)  2,000 hours per day. 
B)  4,000 hours per day. 
C)  5,000 hours per day. 
D)  7,000 hours per day.

Question 7

A proportional income tax is a tax for which the total amount paid does not increase with income.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A)  10 percent 
B)  30 percent 
C)  20 percent 
D)  5 percent 
A)  10 percent 
B)  30 percent 
C)  20 percent 
D)  5 percent

Question 9

How does the demand for high-skilled workers compare to the demand for low-skilled workers? Why does this difference exist?

Accepted Answer

The demand for high-skilled workers exce

Question 10

The entry of China and other developing countries into the global economy ________ the wages of low-skilled workers and ________ the wages of high-skilled workers in the United States.

Accepted Answer

A)  lowers; lowers 
B)  raises; raises 
C)  raises; lowers 
D)  lowers; raises 
A)  lowers; lowers 
B)  raises; raises 
C)  raises; lowers 
D)  lowers; raises

Question 11

-The above table shows the distribution of wealth and income for Miseria. What percent of the wealth is owned by the wealthiest twenty percent of the population?

Accepted Answer

A)  0 percent 
B)  2 percent 
C)  5 percent 
D)  83 percent 
A)  0 percent 
B)  2 percent 
C)  5 percent 
D)  83 percent

Question 12

Which of the following is an example of a subsidized service?

Accepted Answer

A)  Social Security payments to retirees 
B)  Social Security payments to widows 
C)  welfare payments to the unemployed 
D)  Medicare reimbursements to hospitals 
A)  Social Security payments to retirees 
B)  Social Security payments to widows 
C)  welfare payments to the unemployed 
D)  Medicare reimbursements to hospitals

Question 13

The inefficiency created by income taxation occurs due to

Accepted Answer

A)  the cost of collecting taxes and making welfare payments. 
B)  motivating welfare recipients to work less. 
C)  motivating income earners to work less. 
D)  All of the above answers are correct. 
A)  the cost of collecting taxes and making welfare payments. 
B)  motivating welfare recipients to work less. 
C)  motivating income earners to work less. 
D)  All of the above answers are correct.

Question 14

The distribution of U.S. income is not bell-shaped because

Accepted Answer

A)  there are more households with incomes below the mean income than above the mean income. 
B)  there are more households with incomes above the mean income than below the mean income. 
C)  the mode income equals the mean income. 
D)  the income distribution is bell shaped. 
A)  there are more households with incomes below the mean income than above the mean income. 
B)  there are more households with incomes above the mean income than below the mean income. 
C)  the mode income equals the mean income. 
D)  the income distribution is bell shaped.

Question 15

-According to the 2007/2008 United Nations Human Development Report, the Gini ratio for Portugal is 38.5, Norway is 25.8, the United States is 40.8, and Russia is 39.9. Which of these four countries has the lowest level of income equality?

Accepted Answer

A)  Portugal 
B)  United States 
C)  Norway 
D)  Russia 
A)  Portugal 
B)  United States 
C)  Norway 
D)  Russia

Question 16

High-skilled workers have

Accepted Answer

A)  a lower value of marginal product because they have higher wages. 
B)  the same labor supply curve as do low-skilled workers. 
C)  more human capital than do low-skilled workers. 
D)  None of the above answers is correct. 
A)  a lower value of marginal product because they have higher wages. 
B)  the same labor supply curve as do low-skilled workers. 
C)  more human capital than do low-skilled workers. 
D)  None of the above answers is correct.

Question 17

Customer discrimination against black investment advisers ________ the salaries of black investment advisors and ________ the number of black investment advisers.

Accepted Answer

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

Question 18

Netflix, an online DVD rental service, was established in 1997. In 2010, Netflix has more than 10 million subscribers. This technology has ________ in the labor market for computer software programmers.

Accepted Answer

A)  decreased demand 
B)  increased supply 
C)  decreased supply 
D)  increased demand 
A)  decreased demand 
B)  increased supply 
C)  decreased supply 
D)  increased demand

Question 19

Social Security is an example of

Accepted Answer

A)  a progressive income tax. 
B)  a subsidized service. 
C)  an income maintenance program. 
D)  an unemployment benefit. 
A)  a progressive income tax. 
B)  a subsidized service. 
C)  an income maintenance program. 
D)  an unemployment benefit.

Question 20

Describe the effect education and training have on outcomes in the labor market.

Accepted Answer

Education and training affect both the s

A tax is progressive if the average tax rate

If both rich and poor families pay 25 percent of their income in taxes, the tax scheme is ________.

How has income inequality changed in recent years? What factors account for the changes?

What is the difference between market income and money income? Which is more equally distributed?

-The above figure shows the Lorenz curve for wealth for the nation of Rusha. If the government were to confiscate half of the wealth from the wealthiest twenty percent of the population and give it to the poorest twenty percent, then

-In the figure above, the quantity of high-skilled labor employed is

A proportional income tax is a tax for which the total amount paid does not increase with income.

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

How does the demand for high-skilled workers compare to the demand for low-skilled workers? Why does this difference exist?

The entry of China and other developing countries into the global economy the wages of low-skilled workers and the wages of high-skilled workers in the United States.

-The above table shows the distribution of wealth and income for Miseria. What percent of the wealth is owned by the wealthiest twenty percent of the population?

Which of the following is an example of a subsidized service?

The inefficiency created by income taxation occurs due to

The distribution of U.S. income is not bell-shaped because

-According to the 2007/2008 United Nations Human Development Report, the Gini ratio for Portugal is 38.5, Norway is 25.8, the United States is 40.8, and Russia is 39.9. Which of these four countries has the lowest level of income equality?

High-skilled workers have

Customer discrimination against black investment advisers the salaries of black investment advisors and the number of black investment advisers.

Netflix, an online DVD rental service, was established in 1997. In 2010, Netflix has more than 10 million subscribers. This technology has ________ in the labor market for computer software programmers.

Social Security is an example of

Describe the effect education and training have on outcomes in the labor market.

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

A tax is progressive if the average tax rate

If both rich and poor families pay 25 percent of their income in taxes, the tax scheme is ________.

How has income inequality changed in recent years? What factors account for the changes?

What is the difference between market income and money income? Which is more equally distributed?

-The above figure shows the Lorenz curve for wealth for the nation of Rusha. If the government were to confiscate half of the wealth from the wealthiest twenty percent of the population and give it to the poorest twenty percent, then

-In the figure above, the quantity of high-skilled labor employed is

A proportional income tax is a tax for which the total amount paid does not increase with income.

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

How does the demand for high-skilled workers compare to the demand for low-skilled workers? Why does this difference exist?

The entry of China and other developing countries into the global economy ________ the wages of low-skilled workers and ________ the wages of high-skilled workers in the United States.

-The above table shows the distribution of wealth and income for Miseria. What percent of the wealth is owned by the wealthiest twenty percent of the population?

Which of the following is an example of a subsidized service?

The inefficiency created by income taxation occurs due to

The distribution of U.S. income is not bell-shaped because

-According to the 2007/2008 United Nations Human Development Report, the Gini ratio for Portugal is 38.5, Norway is 25.8, the United States is 40.8, and Russia is 39.9. Which of these four countries has the lowest level of income equality?

High-skilled workers have

Customer discrimination against black investment advisers ________ the salaries of black investment advisors and ________ the number of black investment advisers.

Netflix, an online DVD rental service, was established in 1997. In 2010, Netflix has more than 10 million subscribers. This technology has ________ in the labor market for computer software programmers.

Social Security is an example of

Describe the effect education and training have on outcomes in the labor market.

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 entry of China and other developing countries into the global economy the wages of low-skilled workers and the wages of high-skilled workers in the United States.

Customer discrimination against black investment advisers the salaries of black investment advisors and the number of black investment advisers.