Question 1

Exhibit 17-2   Refer to Exhibit 17-2.With regard to the income quintile listings,which one indicates the least degree of income equality?

Accepted Answer

A)  a 
B)  b 
C)  c 
D)  d 
A)  a 
B)  b 
C)  c 
D)  d

Question 2

What income groups are most likely to benefit from state and federal subsidies to higher education? Why?

Accepted Answer

Economists have argued that state-subsid

Question 3

Unlike those enrolled in a PPO,patients in an HMO can generally opt for nonparticipating physicians.

Accepted Answer

A) True 
 B)False

Question 4

Currently,there are fewer male than female nurses.This is proof that there is sex discrimination in the nursing profession.

Accepted Answer

A) True 
 B)False

Question 5

If labor markets are competitive,discriminating employers:

Accepted Answer

A)  suffer no economic consequences from discrimination. 
B)  incur higher costs as a result of discrimination and are therefore at a competitive disadvantage. 
C)  incur lower costs than nondiscriminating employers and therefore have a competitive advantage. 
D)  enjoy higher profits. 
A)  suffer no economic consequences from discrimination. 
B)  incur higher costs as a result of discrimination and are therefore at a competitive disadvantage. 
C)  incur lower costs than nondiscriminating employers and therefore have a competitive advantage. 
D)  enjoy higher profits.

Question 6

Since the 1980s the proportion of income received by the top 5 percent of Americans has ____,and the measured income of Americans in the lowest fifth has ____.

Accepted Answer

A)  risen; risen 
B)  risen; fallen 
C)  fallen; risen 
D)  fallen; fallen 
A)  risen; risen 
B)  risen; fallen 
C)  fallen; risen 
D)  fallen; fallen

Question 7

A typical 50-year-old male earns:

Accepted Answer

A)  one-third more than a male in his early 20s. 
B)  nearly twice the income of a male in his early 20s. 
C)  one-third less than workers over 65. 
D)  nearly twice the income of workers over 65. 
A)  one-third more than a male in his early 20s. 
B)  nearly twice the income of a male in his early 20s. 
C)  one-third less than workers over 65. 
D)  nearly twice the income of workers over 65.

Question 8

The federal law prohibiting the sale of organs has resulted in:

Accepted Answer

A)  a shortage of organs for transplant. 
B)  exorbitant prices for organs available for transplant. 
C)  more lives saved as a result of transplants. 
D)  a surplus of organs for transplant. 
E)  both a. and b. 
A)  a shortage of organs for transplant. 
B)  exorbitant prices for organs available for transplant. 
C)  more lives saved as a result of transplants. 
D)  a surplus of organs for transplant. 
E)  both a. and b.

Question 9

By the year 2035,the percentage of the U.S.population over 65 years old is expected to:

Accepted Answer

A)  increase substantially. 
B)  increase minimally. 
C)  decrease minimally. 
D)  decrease substantially. 
A)  increase substantially. 
B)  increase minimally. 
C)  decrease minimally. 
D)  decrease substantially.

Question 10

Which of the following countries has the least degree of measured income inequality?

Accepted Answer

A)  India 
B)  Brazil 
C)  Mexico 
D)  United States 
A)  India 
B)  Brazil 
C)  Mexico 
D)  United States

Question 11

International comparisons of income inequality indicate that the degree of inequality is greatest in:

Accepted Answer

A)  developing countries. 
B)  developed countries. 
C)  countries with a homogeneous population. 
D)  the United States. 
A)  developing countries. 
B)  developed countries. 
C)  countries with a homogeneous population. 
D)  the United States.

Question 12

The health services market differs from many others in that,because of insurance,the consumer often pays only a fraction of the direct cost of care.

Accepted Answer

A) True 
 B)False

Question 13

Currently,the supply curve for human organs is perfectly inelastic.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is not a reason for the existence of imperfect competition in health care markets?

Accepted Answer

A)  eas entry into industry 
B)  restrictions on advertising 
C)  economies of scale 
D)  collusion 
A)  eas entry into industry 
B)  restrictions on advertising 
C)  economies of scale 
D)  collusion

Question 15

Which of the following is considered to be an "environmental explanation" for discrimination?

Accepted Answer

A)  personal tastes and preferences for discrimination 
B)  affirmative action programs 
C)  less training and education 
D)  religious beliefs 
A)  personal tastes and preferences for discrimination 
B)  affirmative action programs 
C)  less training and education 
D)  religious beliefs

Question 16

One reason scholars argue that government activity should be considered when evaluating the measured income distribution because:

Accepted Answer

A)  the lowest-income quintile has benefited from state-subsidized higher education more than have middle-income and higher income quintiles. 
B)  the higher-income quintiles have benefited more than the poor from housing subsidies and Medicaid. 
C)  the middle and higher-income quintiles have benefited more than the poor from state-subsidized airports, airlines, operas, and museums. 
D)  the lowest-income quintile has benefited more than middle-income and upper-income quintiles from state-subsidized airports, airlines, operas, and museums. 
A)  the lowest-income quintile has benefited from state-subsidized higher education more than have middle-income and higher income quintiles. 
B)  the higher-income quintiles have benefited more than the poor from housing subsidies and Medicaid. 
C)  the middle and higher-income quintiles have benefited more than the poor from state-subsidized airports, airlines, operas, and museums. 
D)  the lowest-income quintile has benefited more than middle-income and upper-income quintiles from state-subsidized airports, airlines, operas, and museums.

Question 17

With a negative income tax featuring an $8,000 minimum level of income and a 20% tax rate,a household earning zero dollars would receive a subsidy of:

Accepted Answer

A)  zero 
B)  $1,600 
C)  $6,400 
D)  $8,000 
A)  zero 
B)  $1,600 
C)  $6,400 
D)  $8,000

Question 18

Many economists conclude that in-kind income programs have served to increase levels of inequality significantly from the levels suggested by aggregate income statistics.

Accepted Answer

A) True 
 B)False

Question 19

Merely demonstrating that wages are lower for blacks and females does not in itself prove wage discrimination.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following observations regarding the Gini coefficient (G)is incorrect?

Accepted Answer

A)  If G is one, the Lorenz curve would overlap the line of perfect income equality. 
B)  If G is zero, it represents perfect income equality 
C)  If G is one, it represents perfect income inequality 
D)  The closer G is to 1 the greater the degree of income inequality 
A)  If G is one, the Lorenz curve would overlap the line of perfect income equality. 
B)  If G is zero, it represents perfect income equality 
C)  If G is one, it represents perfect income inequality 
D)  The closer G is to 1 the greater the degree of income inequality

Exam 17: Income, Poverty, and Health Care

Exhibit 17-2 Refer to Exhibit 17-2.With regard to the income quintile listings,which one indicates the least degree of income equality?

What income groups are most likely to benefit from state and federal subsidies to higher education? Why?

Unlike those enrolled in a PPO,patients in an HMO can generally opt for nonparticipating physicians.

Currently,there are fewer male than female nurses.This is proof that there is sex discrimination in the nursing profession.

If labor markets are competitive,discriminating employers:

Since the 1980s the proportion of income received by the top 5 percent of Americans has ____,and the measured income of Americans in the lowest fifth has ____.

A typical 50-year-old male earns:

The federal law prohibiting the sale of organs has resulted in:

By the year 2035,the percentage of the U.S.population over 65 years old is expected to:

Which of the following countries has the least degree of measured income inequality?

International comparisons of income inequality indicate that the degree of inequality is greatest in:

The health services market differs from many others in that,because of insurance,the consumer often pays only a fraction of the direct cost of care.

Currently,the supply curve for human organs is perfectly inelastic.

Which of the following is not a reason for the existence of imperfect competition in health care markets?

Which of the following is considered to be an "environmental explanation" for discrimination?

One reason scholars argue that government activity should be considered when evaluating the measured income distribution because:

With a negative income tax featuring an $8,000 minimum level of income and a 20% tax rate,a household earning zero dollars would receive a subsidy of:

Many economists conclude that in-kind income programs have served to increase levels of inequality significantly from the levels suggested by aggregate income statistics.

Merely demonstrating that wages are lower for blacks and females does not in itself prove wage discrimination.

Which of the following observations regarding the Gini coefficient (G)is incorrect?

The Role and Method of Economics

Economics: Eight Powerful Ideas

Scarcity, Trade-Offs, and Production Possibilities

Demand, Supply, and Market Equilibrium

Markets in Motion and Price Controls

Elasticities

Market Efficiency and Welfare

Market Failure

Public Finance and Public Choice

Consumer Choice Theory

The Firm: Production and Costs

Firms in Perfectly Competitive Markets

Monopoly and Antitrust

Monopolistic Competition and Product Differentiation

Oligopoly and Strategic Behavior

The Markets for Labor, Capital, and Land

Introduction to Macroeconomics: Unemployment, Inflation, and Economic Fluctuations

Measuring Economic Performance

Economic Growth in the Global Economy

Financial Markets, Saving, and Investment

Aggregate Demand and Aggregate Supply

The Aggregate Expenditure Model

Monetary Institutions

The Federal Reserve System and Monetary Policy

Issues in Macroeconomic Theory and Policy

International Trade

International Finance

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Since the 1980s the proportion of income received by the top 5 percent of Americans has ,and the measured income of Americans in the lowest fifth has .