Question 1

How would you feel about a policy that would raise someone else's income without lowering yours? Are you any worse off?

Accepted Answer

If total income is fixed,it would be imp

Question 2

How would poverty be affected in the United States if the measure were changed to a more comprehensive one that included the value of in-kind transfers,medical services,and taxes?

Accepted Answer

Estimates have shown that poverty measur

Question 3

The middle class in the United States has _______ since the late 1960s.

Accepted Answer

A) stayed the same 
B) decreased 
C) increased a great deal but then declined 
D) increased slightly 
A) stayed the same 
B) decreased 
C) increased a great deal but then declined 
D) increased slightly

Question 4

The poverty rate in the United States has decreased by more than 50% over the last 40 years.

Accepted Answer

A) True 
 B)False

Question 5

Income is the only factor used to measure a person's wealth.

Accepted Answer

A) True 
 B)False

Question 6

State whether you agree with the following statement and why: "It doesn't make sense to give poor people cash since they'll spend it on cigarettes and lottery tickets instead of needed items."

Accepted Answer

It is difficult to predict what any indi

Question 7

The poverty rate in the United States has __________ over the last 30 years.

Accepted Answer

A) remained the same 
B) increased 
C) decreased 
D) not been accurately measured 
A) remained the same 
B) increased 
C) decreased 
D) not been accurately measured

Question 8

Changing the price of good Y will

Accepted Answer

A) only affect the demand for that good. 
B) have effects across some markets. 
C) keep prices down in all markets. 
D) have no effect. 
A) only affect the demand for that good. 
B) have effects across some markets. 
C) keep prices down in all markets. 
D) have no effect.

Question 9

Suppose there are only two people,Mr.Mullinax and Ms.Fleming,who must split a fixed income of $500.For Mr.Mullinax,the marginal utility of income is MUm = 600-2Im,while for Ms.Fleming,marginal utility is MUf = 600-3If ,where Im and If are the amounts of income to Mr.Mullinax and Ms.Fleming,respectively.
(A)What is the optimal distribution of income if the social welfare function is additive?
(B)What is the optimal distribution if society values only the utility of Ms.Fleming? What if the reverse is true? Comment on your answer.
(C)Finally,comment on how your answers change if the marginal utility of income for both Mr.Mullinax and Ms.Fleming is constant such that Mum = 250 = MUf.(This one is subtle. )

Accepted Answer

The setup should be I_m + I_f = 500 and 600-

Question 10

Maximizing the utility of the person with the minimum utility is known as

Accepted Answer

A) the minimax criterion. 
B) the maximin criterion. 
C) the Hicks-Kaldor criterion. 
D) the Corlett-Hague Rule. 
A) the minimax criterion. 
B) the maximin criterion. 
C) the Hicks-Kaldor criterion. 
D) the Corlett-Hague Rule.

Question 11

Generally,official poverty measures ignore

Accepted Answer

A) the impact of taxes. 
B) the value of in-kind transfers. 
C) the value of medical expenses that are paid by the government. 
D) all of the above. 
A) the impact of taxes. 
B) the value of in-kind transfers. 
C) the value of medical expenses that are paid by the government. 
D) all of the above.

Question 12

Suppose Lefty has utility characterized by the equation: Ul = 3I1/2,where I is income.In addition,Righty has utility characterized by the equation: Ur = 4I1/2,where I is income.
(A)If each had $100,000,which one would have the higher level of utility?
(B)Illustrate Lefty's and Right's utility functions.
(C)What equal amount of income could we give to both that would also give them the same level of utility?

Accepted Answer

(A)Lefty's utility would be 30

How would you feel about a policy that would raise someone else's income without lowering yours? Are you any worse off?

How would poverty be affected in the United States if the measure were changed to a more comprehensive one that included the value of in-kind transfers,medical services,and taxes?

The middle class in the United States has _______ since the late 1960s.

The poverty rate in the United States has decreased by more than 50% over the last 40 years.

Income is the only factor used to measure a person's wealth.

State whether you agree with the following statement and why: "It doesn't make sense to give poor people cash since they'll spend it on cigarettes and lottery tickets instead of needed items."

The poverty rate in the United States has __________ over the last 30 years.

Changing the price of good Y will

Maximizing the utility of the person with the minimum utility is known as

Generally,official poverty measures ignore

Introduction

Tools of Positive Analysis

Tools of Normative Analysis

Public Goods

Externalities

Political Economy

Education

Cost-Benefit Analysis

The Health Care Market

Government and the Market for Health Care

Social Security

Expenditure Programs for the Poor

Taxation and Income Distribution

Taxation and Efficiency

Efficient and Equitable Taxation

The Personal Income Tax

Personal Taxation and Behavior

The Corporation Tax

Deficit Finance

Fundamental Tax Reform: Taxes on Consumption and Wealth

Public Finance in a Federal System

Filters

Exam 12: Income Redistribution: Conceptual Issues

How would you feel about a policy that would raise someone else's income without lowering yours? Are you any worse off?

How would poverty be affected in the United States if the measure were changed to a more comprehensive one that included the value of in-kind transfers,medical services,and taxes?

The middle class in the United States has _______ since the late 1960s.

The poverty rate in the United States has decreased by more than 50% over the last 40 years.

Income is the only factor used to measure a person's wealth.

State whether you agree with the following statement and why: "It doesn't make sense to give poor people cash since they'll spend it on cigarettes and lottery tickets instead of needed items."

The poverty rate in the United States has __________ over the last 30 years.

Changing the price of good Y will

Maximizing the utility of the person with the minimum utility is known as

Generally,official poverty measures ignore

Introduction

Tools of Positive Analysis

Tools of Normative Analysis

Public Goods

Externalities

Political Economy

Education

Cost-Benefit Analysis

The Health Care Market

Government and the Market for Health Care

Social Security

Expenditure Programs for the Poor

Taxation and Income Distribution

Taxation and Efficiency

Efficient and Equitable Taxation

The Personal Income Tax

Personal Taxation and Behavior

The Corporation Tax

Deficit Finance

Fundamental Tax Reform: Taxes on Consumption and Wealth

Public Finance in a Federal System

Filters