Question 1

On average,middle-aged people tend to have higher incomes than younger or older people do because:

Accepted Answer

A)  they receive more money from the government than younger or older people do. 
B)  they are at an age where their productivity is at its peak. 
C)  they participate in the labor force to a lesser extent than do the young or the old. 
D)  they are subject to lower rates of taxation than are younger or older workers. 
A)  they receive more money from the government than younger or older people do. 
B)  they are at an age where their productivity is at its peak. 
C)  they participate in the labor force to a lesser extent than do the young or the old. 
D)  they are subject to lower rates of taxation than are younger or older workers.

Question 2

Being that health care is a basic human right,there is no opportunity cost for the utilization of medical services.

Accepted Answer

A) True 
 B)False

Question 3

If we consider age distribution,institutional factors,and in-kind transfer programs,income distribution is likely considerably more unequal than it appears from measured income.

Accepted Answer

A) True 
 B)False

Question 4

The typical 50-year-old male earns approximately ____ as a male in his early 20s.

Accepted Answer

A)  twice as much 
B)  the same 
C)  half as much 
D)  1/3 as much 
A)  twice as much 
B)  the same 
C)  half as much 
D)  1/3 as much

Question 5

The ____ participate in the labor force to a greater extent than do the ____.

Accepted Answer

A)  very young; middle-aged and very old 
B)  middle-aged; very young and very old 
C)  very old; very young and middle-aged 
D)  very young and very old; middle-aged 
A)  very young; middle-aged and very old 
B)  middle-aged; very young and very old 
C)  very old; very young and middle-aged 
D)  very young and very old; middle-aged

Question 6

It has been argued that state-subsidized ____ programs have benefited the poor more than middle and upper-income quintiles.

Accepted Answer

A)  Medicaid 
B)  higher education 
C)  art museum 
D)  airport and airline subsidy 
A)  Medicaid 
B)  higher education 
C)  art museum 
D)  airport and airline subsidy

Question 7

From a purely economic point of view,discrimination is established if:

Accepted Answer

A)  black teenagers earn more than white teenagers do. 
B)  all factors are earning an amount equivalent to their marginal revenue product. 
C)  women earn less than men do. 
D)  equivalent factors earn different payments for equal contributions to output. 
A)  black teenagers earn more than white teenagers do. 
B)  all factors are earning an amount equivalent to their marginal revenue product. 
C)  women earn less than men do. 
D)  equivalent factors earn different payments for equal contributions to output.

Question 8

On average,an individual with a college degree earns about ____ more each week than an individual who has not completed high school.

Accepted Answer

A)  $8,000 
B)  $18,000 
C)  $33,000 
D)  $58,000 
A)  $8,000 
B)  $18,000 
C)  $33,000 
D)  $58,000

Question 9

Indemnity coverage does not include:

Accepted Answer

A)  compensation toward the cost of medical services in the event of illness. 
B)  compensation toward the cost of medical services for routine health issues. 
C)  compensation toward the cost of medical services in the event of injury. 
D)  both b. and c. 
A)  compensation toward the cost of medical services in the event of illness. 
B)  compensation toward the cost of medical services for routine health issues. 
C)  compensation toward the cost of medical services in the event of injury. 
D)  both b. and c.

Question 10

A relatively larger proportion of ____ work in unskilled jobs with lower pay than do ____.

Accepted Answer

A)  females; Caucasian males 
B)  nonwhites; Caucasian males 
C)  Caucasian males; females 
D)  Both (a) and (b) are correct. 
A)  females; Caucasian males 
B)  nonwhites; Caucasian males 
C)  Caucasian males; females 
D)  Both (a) and (b) are correct.

Question 11

Many health economists believe that health-care reform will:

Accepted Answer

A)  decrease demand for new, better, and more expensive medical advances. 
B)  lower premiums for young adults. 
C)  eliminate private health insurance entirely. 
D)  have a very limited effect on reducing government health-care expenditures. 
A)  decrease demand for new, better, and more expensive medical advances. 
B)  lower premiums for young adults. 
C)  eliminate private health insurance entirely. 
D)  have a very limited effect on reducing government health-care expenditures.

Question 12

How does age affect the amount of income people earn?

Accepted Answer

Younger people with few skills tend to m

Question 13

Which of the following government programs are likely to aid the poor more than those in upper income brackets?

Accepted Answer

A)  subsidies to museums 
B)  state-subsidized higher education benefits 
C)  school lunch programs 
D)  government subsidies to airports 
A)  subsidies to museums 
B)  state-subsidized higher education benefits 
C)  school lunch programs 
D)  government subsidies to airports

Question 14

"Not all government programs benefit the relatively poor." Discuss this statement with examples.

Accepted Answer

Though government programs are introduce

Question 15

Other things equal,who of the following would not tend to earn more?

Accepted Answer

A)  Someone in a riskier or more unpleasant job, rather than a safer or more pleasant job. 
B)  Someone in a job that requires a graduate degree rather than an undergraduate degree. 
C)  Someone who works longer hours, rather than shorter hours. 
D)  All of the above would tend to earn more. 
A)  Someone in a riskier or more unpleasant job, rather than a safer or more pleasant job. 
B)  Someone in a job that requires a graduate degree rather than an undergraduate degree. 
C)  Someone who works longer hours, rather than shorter hours. 
D)  All of the above would tend to earn more.

Question 16

Which of the following accounts for the highest percentage of health care dollar spending in the United States?

Accepted Answer

A)  prescription drugs 
B)  physician services 
C)  program administration and net cost 
D)  hospital care 
A)  prescription drugs 
B)  physician services 
C)  program administration and net cost 
D)  hospital care

Question 17

The official poverty rate for the United States is currently set at ____ times the cost of providing a nutritionally adequate diet.

Accepted Answer

A)  two 
B)  three 
C)  five 
D)  eight 
A)  two 
B)  three 
C)  five 
D)  eight

Question 18

Dramatically redistributing income from the rich to the poor could make society worse off.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following observations is true?

Accepted Answer

A)  An unlimited quantity of organs is available in the United States. 
B)  All organs are required to be donated. 
C)  The supply curve for organs is perfectly elastic. 
D)  The demand curve for human organs is upward sloping. 
A)  An unlimited quantity of organs is available in the United States. 
B)  All organs are required to be donated. 
C)  The supply curve for organs is perfectly elastic. 
D)  The demand curve for human organs is upward sloping.

Question 20

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

Accepted Answer

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

Exam 17: Income, Poverty, and Health Care

On average,middle-aged people tend to have higher incomes than younger or older people do because:

Being that health care is a basic human right,there is no opportunity cost for the utilization of medical services.

If we consider age distribution,institutional factors,and in-kind transfer programs,income distribution is likely considerably more unequal than it appears from measured income.

The typical 50-year-old male earns approximately ____ as a male in his early 20s.

The ____ participate in the labor force to a greater extent than do the ____.

It has been argued that state-subsidized ____ programs have benefited the poor more than middle and upper-income quintiles.

From a purely economic point of view,discrimination is established if:

On average,an individual with a college degree earns about ____ more each week than an individual who has not completed high school.

Indemnity coverage does not include:

A relatively larger proportion of ____ work in unskilled jobs with lower pay than do ____.

Many health economists believe that health-care reform will:

How does age affect the amount of income people earn?

Which of the following government programs are likely to aid the poor more than those in upper income brackets?

"Not all government programs benefit the relatively poor." Discuss this statement with examples.

Other things equal,who of the following would not tend to earn more?

Which of the following accounts for the highest percentage of health care dollar spending in the United States?

The official poverty rate for the United States is currently set at ____ times the cost of providing a nutritionally adequate diet.

Dramatically redistributing income from the rich to the poor could make society worse off.

Which of the following observations is true?

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

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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The participate in the labor force to a greater extent than do the .

A relatively larger proportion of work in unskilled jobs with lower pay than do .