Question 1

With respect to wealth in the United States, we presently find that the richest one percent of Americans own approximately how much of the nation's wealth?

Accepted Answer

A)  10 percent 
B)  40 percent 
C)  70 percent 
D)  85 percent 
A)  10 percent 
B)  40 percent 
C)  70 percent 
D)  85 percent

Question 2

Health care costs have been rising due to

Accepted Answer

A)  an aging population. 
B)  new technologies. 
C)  third-party financing. 
D)  All of the above are correct. 
A)  an aging population. 
B)  new technologies. 
C)  third-party financing. 
D)  All of the above are correct.

Question 3

-Use the above table. What percentage of income is received by the poorest 60% of the population?

Accepted Answer

A)  27.78 percent 
B)  33.33 percent 
C)  44.44 percent 
D)  55.56 percent 
A)  27.78 percent 
B)  33.33 percent 
C)  44.44 percent 
D)  55.56 percent

Question 4

The egalitarian principle says

Accepted Answer

A)  that everyone should have exactly the same income. 
B)  that the age-earnings cycle should determine income. 
C)  that people should be compensated on the basis of what they produce. 
D)  that people should be compensated on the basis of their need. 
A)  that everyone should have exactly the same income. 
B)  that the age-earnings cycle should determine income. 
C)  that people should be compensated on the basis of what they produce. 
D)  that people should be compensated on the basis of their need.

Question 5

Based on most observations, what are the effects on government budgets from the national health care program?

Accepted Answer

A)  Tax revenues will not flow into the new program immediately. 
B)  The federal government ultimately will have to search for ways to reduce its health care expenditures . 
C)  Federal government expenditures on the program are being phased in immediately. 
D)  the federal government ultimately will lower taxes since the program's cost will decline over time. 
A)  Tax revenues will not flow into the new program immediately. 
B)  The federal government ultimately will have to search for ways to reduce its health care expenditures . 
C)  Federal government expenditures on the program are being phased in immediately. 
D)  the federal government ultimately will lower taxes since the program's cost will decline over time.

Question 6

The more bowed out the Lorenz curve, the

Accepted Answer

A)  less equal the income distribution. 
B)  more equal the income distribution. 
C)  greater the overall wealth in the economy. 
D)  less the overall wealth in the economy. 
A)  less equal the income distribution. 
B)  more equal the income distribution. 
C)  greater the overall wealth in the economy. 
D)  less the overall wealth in the economy.

Question 7

Which of the following statements about Social Security is FALSE?

Accepted Answer

A)  Social Security is an intergenerational transfer where the benefits paid are only roughly related to past earnings. 
B)  Over 90 percent of all employed workers in the United States are covered by Social Security. 
C)  Benefit payments under Social Security are based on the recipient's need. 
D)  Benefit payments under Social Security redistribute income from young to old. 
A)  Social Security is an intergenerational transfer where the benefits paid are only roughly related to past earnings. 
B)  Over 90 percent of all employed workers in the United States are covered by Social Security. 
C)  Benefit payments under Social Security are based on the recipient's need. 
D)  Benefit payments under Social Security redistribute income from young to old.

Question 8

According to the text, today's Lorenz curve is

Accepted Answer

A)  a straight line. 
B)  a vertical line. 
C)  more bowed than in 1929. 
D)  less bowed than in 1929. 
A)  a straight line. 
B)  a vertical line. 
C)  more bowed than in 1929. 
D)  less bowed than in 1929.

Question 9

Government agencies to which the national health care program assigns the task of assisting individuals, families, and small businesses in identifying health insurance policies to purchase are known as

Accepted Answer

A)  health care exchanges. 
B)  markets for health care. 
C)  health insurance regulations. 
D)  health insurance mandates. 
A)  health care exchanges. 
B)  markets for health care. 
C)  health insurance regulations. 
D)  health insurance mandates.

Question 10

Other things being equal, a national health insurance program would

Accepted Answer

A)  decrease the demand for health care. 
B)  decrease moral hazard. 
C)  decrease total health care expenditures. 
D)  reduce individuals' incentives to make decisions that promote better health. 
A)  decrease the demand for health care. 
B)  decrease moral hazard. 
C)  decrease total health care expenditures. 
D)  reduce individuals' incentives to make decisions that promote better health.

Question 11

Most individual's income peaks when they are about

Accepted Answer

A)  30. 
B)  40. 
C)  50. 
D)  60. 
A)  30. 
B)  40. 
C)  50. 
D)  60.

Question 12

Which of the following is NOT a program designed to attack poverty?

Accepted Answer

A)  Supplementary Security Income 
B)  food stamps 
C)  Social Security 
D)  federal corporate income tax 
A)  Supplementary Security Income 
B)  food stamps 
C)  Social Security 
D)  federal corporate income tax

Question 13

When poverty is defined by an relative real income level, what will happen to the poverty rate if the distribution of income is not perfectly equal?

Accepted Answer

A)  The poverty rate will increase forever. 
B)  The poverty rate will eventually be zero. 
C)  The poverty rate will always remain constant. 
D)  The poverty rate will change, but always exist. 
A)  The poverty rate will increase forever. 
B)  The poverty rate will eventually be zero. 
C)  The poverty rate will always remain constant. 
D)  The poverty rate will change, but always exist.

Question 14

The less bowed the Lorenz Curve, the

Accepted Answer

A)  more equal the income distribution. 
B)  less equal the income distribution. 
C)  greater the number of low-income people. 
D)  greater the number of high-income people. 
A)  more equal the income distribution. 
B)  less equal the income distribution. 
C)  greater the number of low-income people. 
D)  greater the number of high-income people.

Question 15

The age-earnings profile predicts that earnings will peak at

Accepted Answer

A)  the 35-40 age level. 
B)  the 45-50 age level. 
C)  the 60-65 age level. 
D)  retirement. 
A)  the 35-40 age level. 
B)  the 45-50 age level. 
C)  the 60-65 age level. 
D)  retirement.

Question 16

-The above figure displays

Accepted Answer

A)  income-inequality curves. 
B)  Gini Coefficients. 
C)  Lorenz curves. 
D)  Laffer curves. 
A)  income-inequality curves. 
B)  Gini Coefficients. 
C)  Lorenz curves. 
D)  Laffer curves.

Question 17

Which of the following statements is FALSE regarding the definition of poverty?

Accepted Answer

A)  A threshold income level is used to define poverty. 
B)  Adjustments to the poverty level are made on the basis of changes in the Consumer Price Index. 
C)  Real incomes in the United States have been growing at a compounded annual rate of almost 2 percent per capita. 
D)  Poverty cannot be defined in relative terms. 
A)  A threshold income level is used to define poverty. 
B)  Adjustments to the poverty level are made on the basis of changes in the Consumer Price Index. 
C)  Real incomes in the United States have been growing at a compounded annual rate of almost 2 percent per capita. 
D)  Poverty cannot be defined in relative terms.

Question 18

Why have health care costs risen so much in recent years?

Accepted Answer

The elderly use a disproportionate amoun

Question 19

In a growing economy, it is possible to eliminate

Accepted Answer

A)  absolute poverty. 
B)  relative poverty. 
C)  both absolute and relative poverty. 
D)  either absolute nor relative poverty. 
A)  absolute poverty. 
B)  relative poverty. 
C)  both absolute and relative poverty. 
D)  either absolute nor relative poverty.

Question 20

Which of the following is NOT a reason for the increase in health care costs?

Accepted Answer

A)  the aging of the population 
B)  the implementation of new technologies 
C)  the increase in third party payments 
D)  the decrease in the fertility rate 
A)  the aging of the population 
B)  the implementation of new technologies 
C)  the increase in third party payments 
D)  the decrease in the fertility rate

Exam 30: Income, Poverty, and Health Care

With respect to wealth in the United States, we presently find that the richest one percent of Americans own approximately how much of the nation's wealth?

Health care costs have been rising due to

-Use the above table. What percentage of income is received by the poorest 60% of the population?

The egalitarian principle says

Based on most observations, what are the effects on government budgets from the national health care program?

The more bowed out the Lorenz curve, the

Which of the following statements about Social Security is FALSE?

According to the text, today's Lorenz curve is

Government agencies to which the national health care program assigns the task of assisting individuals, families, and small businesses in identifying health insurance policies to purchase are known as

Other things being equal, a national health insurance program would

Most individual's income peaks when they are about

Which of the following is NOT a program designed to attack poverty?

When poverty is defined by an relative real income level, what will happen to the poverty rate if the distribution of income is not perfectly equal?

The less bowed the Lorenz Curve, the

The age-earnings profile predicts that earnings will peak at

-The above figure displays

Which of the following statements is FALSE regarding the definition of poverty?

Why have health care costs risen so much in recent years?

In a growing economy, it is possible to eliminate

Which of the following is NOT a reason for the increase in health care costs?

The Nature of Economics

Scarcity and the World of Trade-Offs

Demand and Supply

Extensions of Demand and Supply Analysis

Public Spending and Public Choice

Funding the Public Sector

The Macroeconomy: Unemployment, Inflation, and Deflation

Measuring the Economys Performance

Global Economic Growth and Development

Real GDP and the Price Level in the Long Run

Classical and Keynesian Macro Analyses

Consumption, Real GDP, and the Multiplier

Fiscal Policy

Deficit Spending and the Public Debt

Money, Banking, and Central Banking

Domestic and International Dimensions of Monetary Policy

Stabilization in an Integrated World Economy

Policies and Prospects for Global Economic Growth

Demand and Supply Elasticity

Consumer Choice

Rents, Profits, and the Financial Environment of Business

The Firm: Cost and Output Determination

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly and Strategic Behavior

Regulation and Antitrust Policy in a Globalized Economy

The Labor Market: Demand, Supply and Outsourcing

Unions and Labor Market Monopoly Power

Environmental Economics

Comparative Advantage and the Open Economy

Exchange Rates and the Balance of Payments

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