Question 1

Governments enact policies to

Accepted Answer

A)  make the distribution of income more efficient. 
B)  make the distribution of income more equal. 
C)  maximize the use of the welfare system. 
D)  minimize the use of in-kind transfers. 
A)  make the distribution of income more efficient. 
B)  make the distribution of income more equal. 
C)  maximize the use of the welfare system. 
D)  minimize the use of in-kind transfers.

Question 2

A common criticism of government programs that are designed to assist the poor is that

Accepted Answer

A)  those who receive assistance rarely meet the criterion for eligibility. 
B)  the majority of those below the poverty line refuse to accept government assistance. 
C)  they create incentives for people to become "needy." 
D)  they typically account for a majority of annual government expenditures. 
A)  those who receive assistance rarely meet the criterion for eligibility. 
B)  the majority of those below the poverty line refuse to accept government assistance. 
C)  they create incentives for people to become "needy." 
D)  they typically account for a majority of annual government expenditures.

Question 3

If a government could successfully achieve the maximin criterion, each member of society would have an equal income.

Accepted Answer

A) True 
 B)False

Question 4

A government policy aimed at protecting people against the risk of adverse events is called .

Accepted Answer

The answer of A government policy aimed at protecting people...

Question 5

Which of the three political philosophies discussed in the textbook, if any, think the government should not take from some individuals and give to others to achieve any particular distribution of income?

Accepted Answer

The answer of Which of the three political philosophies discussed...

Question 6

With a minimum wage law, the workers who remain employed benefit from a .

Accepted Answer

The answer of With a minimum wage law, the workers...

Question 7

The normal life cycle pattern of income

Accepted Answer

A)  contributes to more inequality in the distribution of annual income and to more inequality in living standards. 
B)  contributes to more inequality in the distribution of annual income, but it does not necessarily contribute to more inequality in living standards. 
C)  contributes to less inequality in the distribution of annual income and to less inequality in living standards. 
D)  has no effect on either the distribution of annual income or on living standards. 
A)  contributes to more inequality in the distribution of annual income and to more inequality in living standards. 
B)  contributes to more inequality in the distribution of annual income, but it does not necessarily contribute to more inequality in living standards. 
C)  contributes to less inequality in the distribution of annual income and to less inequality in living standards. 
D)  has no effect on either the distribution of annual income or on living standards.

Question 8

Table 20-14
Income Inequality in the United States
The values in the table reflect the percentages of pre-tax-and transfer income.
   Source: US Census Bureau
-Refer to Table 20-14. In percentage terms, how much less income did the bottom 40% of families have in 2010 than in 1980?

Accepted Answer

The answer of Table 20-14
Income Inequality in the United States
The...

Question 9

Because people can borrow when they are young, the life cycle theory would suggest that one's standard of living depends on

Accepted Answer

A)  lifetime income rather than annual income. 
B)  aggregate income rather than annual personal income. 
C)  annual extended-family income rather than annual personal income. 
D)  income averaged across seasons rather than across years. 
A)  lifetime income rather than annual income. 
B)  aggregate income rather than annual personal income. 
C)  annual extended-family income rather than annual personal income. 
D)  income averaged across seasons rather than across years.

Question 10

When comparing the percentage of income (or expenditure) of the lowest and highest 10 percent of the population,

Accepted Answer

A)  South Africa has a more equal income distribution than the United States. 
B)  South Africa has a more equal income distribution than Japan. 
C)  Japan has a more equal income distribution than the United States. 
D)  Mexico has a more equal income distribution than Germany. 
A)  South Africa has a more equal income distribution than the United States. 
B)  South Africa has a more equal income distribution than Japan. 
C)  Japan has a more equal income distribution than the United States. 
D)  Mexico has a more equal income distribution than Germany.

Question 11

The life-cycle pattern of income variation causes inequality in the distribution of annual income, but it does not necessarily represent .

Accepted Answer

inequality

Question 12

The poverty rate for female households with no spouse present is approximately

Accepted Answer

A)  10 percent. 
B)  20 percent. 
C)  30 percent. 
D)  40 percent. 
A)  10 percent. 
B)  20 percent. 
C)  30 percent. 
D)  40 percent.

Question 13

The United States has greater income disparity than

Accepted Answer

A)  Japan. 
B)  Indib. 
C)  South Africa. 
D)  Both a and b are correct. 
A)  Japan. 
B)  Indib. 
C)  South Africa. 
D)  Both a and b are correct.

Question 14

Which of the following does not explain the rise in income inequality in the United States from 1970 to 2011?

Accepted Answer

A)  Changes in technology. 
B)  An increase in minimum wages. 
C)  A reduction in the demand for unskilled labor. 
D)  Increased international trade with low-wage countries. 
A)  Changes in technology. 
B)  An increase in minimum wages. 
C)  A reduction in the demand for unskilled labor. 
D)  Increased international trade with low-wage countries.

Question 15

Table 20-15
Income Inequality in 2010 in the United States by Race
The values in the table reflect the percentages of pre-tax-and-transfer income.
   Source: US Census Bureau
-Refer to Table 20-15. In percentage point terms, how much more did the top 5% of the Asian population earn than it would have if income were distributed equally?

Accepted Answer

The answer of Table 20-15
Income Inequality in 2010 in the...

Question 16

Which of the following will not occur when government policies are enacted to make the distribution of income more equitable?

Accepted Answer

A)  People will alter their behaviors. 
B)  Incentives will be distorted. 
C)  Total utility will likely remain constant. 
D)  The allocation of resources will be less efficient . 
A)  People will alter their behaviors. 
B)  Incentives will be distorted. 
C)  Total utility will likely remain constant. 
D)  The allocation of resources will be less efficient .

Question 17

John Rawls, who developed the way of thinking called liberalism, argued that government policies should be aimed at maximizing the sum of utility of everyone in society.

Accepted Answer

A) True 
 B)False

Question 18

Table 20-3
The Distribution of Income in Edgerton
  
-Refer to Table 20-3. According to the table, what percent of families in Edgerton have income levels below $44,000?

Accepted Answer

A)  80 percent 
B)  60 percent 
C)  50 percent 
D)  40 percent 
A)  80 percent 
B)  60 percent 
C)  50 percent 
D)  40 percent

Question 19

The poverty line is set by the government so that 10 percent of all families fall below that line and are thereby classified as "poor."

Accepted Answer

A) True 
 B)False

Question 20

If income were equally distributed among households,

Accepted Answer

A)  each household's relative share of income would increase. 
B)  each household's relative share of income would decrease. 
C)  the top fifth of households would have 50 percent of the income. 
D)  50 percent of the households would receive exactly 50 percent of the income. 
A)  each household's relative share of income would increase. 
B)  each household's relative share of income would decrease. 
C)  the top fifth of households would have 50 percent of the income. 
D)  50 percent of the households would receive exactly 50 percent of the income.

Exam 20: Income Inequality and Poverty

Governments enact policies to

A common criticism of government programs that are designed to assist the poor is that

If a government could successfully achieve the maximin criterion, each member of society would have an equal income.

A government policy aimed at protecting people against the risk of adverse events is called .

Which of the three political philosophies discussed in the textbook, if any, think the government should not take from some individuals and give to others to achieve any particular distribution of income?

With a minimum wage law, the workers who remain employed benefit from a .

The normal life cycle pattern of income

Table 20-14 Income Inequality in the United States The values in the table reflect the percentages of pre-tax-and transfer income. Source: US Census Bureau -Refer to Table 20-14. In percentage terms, how much less income did the bottom 40% of families have in 2010 than in 1980?

Because people can borrow when they are young, the life cycle theory would suggest that one's standard of living depends on

When comparing the percentage of income (or expenditure) of the lowest and highest 10 percent of the population,

The life-cycle pattern of income variation causes inequality in the distribution of annual income, but it does not necessarily represent .

The poverty rate for female households with no spouse present is approximately

The United States has greater income disparity than

Which of the following does not explain the rise in income inequality in the United States from 1970 to 2011?

Which of the following will not occur when government policies are enacted to make the distribution of income more equitable?

John Rawls, who developed the way of thinking called liberalism, argued that government policies should be aimed at maximizing the sum of utility of everyone in society.

Table 20-3 The Distribution of Income in Edgerton -Refer to Table 20-3. According to the table, what percent of families in Edgerton have income levels below $44,000?

The poverty line is set by the government so that 10 percent of all families fall below that line and are thereby classified as "poor."

If income were equally distributed among households,

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Elasticity and Its Application

Supply, Demand, and Government Policies

Consumers, Producers, and the Efficiency of Markets

Application: The Costs of Taxation

Application: International Trade

Externalities

Public Goods and Common Resources

The Design of the Tax System

The Costs of Production

Firms in Competitive Markets

Monopoly

Monopolistic Competition

Oligopoly

The Markets for the Factors of Production

Earnings and Discrimination

The Theory of Consumer Choice

Frontiers of Microeconomics

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