Question 1

The crowding model of occupational segregation predicts that domestic output will increase if occupational segregation is ended.

Accepted Answer

A) True 
 B)False

Question 2

As applied to gender discrimination, the crowding model of occupational segregation

Accepted Answer

A)  helps explain why women earn more than men. 
B)  predicts that men's wages would fall and women's wages would rise if occupational segregation was eliminated. 
C)  predicts that domestic output would decline if occupational segregation was ended. 
D)  predicts that competition will eventually totally end discrimination. 
A)  helps explain why women earn more than men. 
B)  predicts that men's wages would fall and women's wages would rise if occupational segregation was eliminated. 
C)  predicts that domestic output would decline if occupational segregation was ended. 
D)  predicts that competition will eventually totally end discrimination.

Question 3

Medicaid

Accepted Answer

A)  helps finance medical expenses for those participating in the TANF and Supplemental Security Income programs. 
B)  has been abandoned in favor of privately provided medical insurance. 
C)  is a program of medical insurance for the aged and retired. 
D)  is a compulsory national health insurance program that only covers preventative medical services. 
A)  helps finance medical expenses for those participating in the TANF and Supplemental Security Income programs. 
B)  has been abandoned in favor of privately provided medical insurance. 
C)  is a program of medical insurance for the aged and retired. 
D)  is a compulsory national health insurance program that only covers preventative medical services.

Question 4

Based on annual before-tax incomes data from the Bureau of Census, about what percentage of U.S. households had annual incomes of $100,000 or more in 2014?

Accepted Answer

A)  5 percent 
B)  10 percent 
C)  25 percent 
D)  33 percent 
A)  5 percent 
B)  10 percent 
C)  25 percent 
D)  33 percent

Question 5

In 2014, about what percentage of U.S. households had annual before-tax incomes of less than $15,000?

Accepted Answer

A)  about 6 percent 
B)  about 13 percent 
C)  about 25 percent 
D)  about 33 percent 
A)  about 6 percent 
B)  about 13 percent 
C)  about 25 percent 
D)  about 33 percent

Question 6

Which of the following would be a significant cause of income inequality in the United States?

Accepted Answer

A)  housing 
B)  discrimination 
C)  in-kind transfers 
D)  Social Security 
A)  housing 
B)  discrimination 
C)  in-kind transfers 
D)  Social Security

Question 7

One main complaint about the official income thresholds used in defining poverty is that they

Accepted Answer

A)  fail to account for the effects of the minimum wage. 
B)  have remained fixed for over the past two decades. 
C)  include noncash benefits such as food stamps and rent subsidies. 
D)  are inadequate to meet basic needs in major metropolitan areas. 
A)  fail to account for the effects of the minimum wage. 
B)  have remained fixed for over the past two decades. 
C)  include noncash benefits such as food stamps and rent subsidies. 
D)  are inadequate to meet basic needs in major metropolitan areas.

Question 8

The Lorenz curve portrays

Accepted Answer

A)  the functional distribution of income. 
B)  the ratio of labor to capitalist income. 
C)  the personal distribution of income. 
D)  income equality. 
A)  the functional distribution of income. 
B)  the ratio of labor to capitalist income. 
C)  the personal distribution of income. 
D)  income equality.

Question 9

The Temporary Assistance for Needy Families (TANF) program expanded welfare benefits and has no limit on the number of years for receiving welfare benefits.

Accepted Answer

A) True 
 B)False

Question 10

Differences in the amounts and quality of education and training

Accepted Answer

A)  combine with differences in mental, physical, and aesthetic talents to produce income inequality. 
B)  explain none of the income inequality in the United States. 
C)  explain nearly all the income inequality in the United States. 
D)  have lessened in the United States in the past decade, sharply reducing income inequality. 
A)  combine with differences in mental, physical, and aesthetic talents to produce income inequality. 
B)  explain none of the income inequality in the United States. 
C)  explain nearly all the income inequality in the United States. 
D)  have lessened in the United States in the past decade, sharply reducing income inequality.

Question 11

Suppose Gigantic Health Cooperative doesn't hire Mandy Morrison solely because she is a graduate of a particular foreign medical school, which is not known for the high quality of its graduates. Yet Mandy is actually more qualified than the average graduate of American medical schools. This is an example of

Accepted Answer

A)  monopsony exploitation. 
B)  human-capital discrimination. 
C)  statistical discrimination. 
D)  irrational behavior. 
A)  monopsony exploitation. 
B)  human-capital discrimination. 
C)  statistical discrimination. 
D)  irrational behavior.

Question 12

Currently over 90 percent of all workers in the United States are covered by Social Security.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following would likely reduce income inequality?

Accepted Answer

A)  a reduction in the number of high school dropouts 
B)  a reduction in Social Security benefits 
C)  greater inequality in the distribution of wealth 
D)  more stringent requirements to obtain occupational licenses 
A)  a reduction in the number of high school dropouts 
B)  a reduction in Social Security benefits 
C)  greater inequality in the distribution of wealth 
D)  more stringent requirements to obtain occupational licenses

Question 14

(Last Word) Median wealth in the United States in 2013

Accepted Answer

A)  was about the same as in 1995. 
B)  had grown by about 8 percent since 1995. 
C)  was about $76,000. 
D)  was about $84,000. 
A)  was about the same as in 1995. 
B)  had grown by about 8 percent since 1995. 
C)  was about $76,000. 
D)  was about $84,000.

Question 15

As the area between the Lorenz curve and diagonal gets larger, the Gini ratio

Accepted Answer

A)  rises to reflect greater equality. 
B)  rises to reflect greater inequality. 
C)  falls to reflect greater inequality. 
D)  falls to reflect greater equality. 
A)  rises to reflect greater equality. 
B)  rises to reflect greater inequality. 
C)  falls to reflect greater inequality. 
D)  falls to reflect greater equality.

Question 16

The earned-income tax credit

Accepted Answer

A)  increases the personal income tax liability of low-income working families. 
B)  provides a cash payment to low-income working families if their tax credit exceeds their tax liability. 
C)  is designed to make labor force employment less attractive. 
D)  was eliminated as part of welfare reform in 1996. 
A)  increases the personal income tax liability of low-income working families. 
B)  provides a cash payment to low-income working families if their tax credit exceeds their tax liability. 
C)  is designed to make labor force employment less attractive. 
D)  was eliminated as part of welfare reform in 1996.

Question 17

Each of the following contributes to income inequality except

Accepted Answer

A)  differences in ability and training. 
B)  differences in job tastes. 
C)  differences in wealth ownership. 
D)  government transfers. 
A)  differences in ability and training. 
B)  differences in job tastes. 
C)  differences in wealth ownership. 
D)  government transfers.

Question 18

When the occupational choices of women or minorities are restricted, this results in

Accepted Answer

A)  lower wages for these groups, but has no effect on the efficient allocation of labor resources. 
B)  lower wages for these groups, but more efficient allocation of labor resources. 
C)  lower wages for these groups and less efficient allocation of labor resources. 
D)  higher wages for these groups and more efficient allocation of labor resources. 
A)  lower wages for these groups, but has no effect on the efficient allocation of labor resources. 
B)  lower wages for these groups, but more efficient allocation of labor resources. 
C)  lower wages for these groups and less efficient allocation of labor resources. 
D)  higher wages for these groups and more efficient allocation of labor resources.

Question 19

The U.S. poverty rate for the elderly (65 and over) is higher than for the general population.

Accepted Answer

A) True 
 B)False

Question 20

In the United States since 1975, the poor have gotten poorer and the rich have gotten richer in both relative and absolute terms.

Accepted Answer

A) True 
 B)False

Exam 23: Income Inequality, Poverty, and Discrimination

The crowding model of occupational segregation predicts that domestic output will increase if occupational segregation is ended.

As applied to gender discrimination, the crowding model of occupational segregation

Medicaid

Based on annual before-tax incomes data from the Bureau of Census, about what percentage of U.S. households had annual incomes of $100,000 or more in 2014?

In 2014, about what percentage of U.S. households had annual before-tax incomes of less than $15,000?

Which of the following would be a significant cause of income inequality in the United States?

One main complaint about the official income thresholds used in defining poverty is that they

The Lorenz curve portrays

The Temporary Assistance for Needy Families (TANF) program expanded welfare benefits and has no limit on the number of years for receiving welfare benefits.

Differences in the amounts and quality of education and training

Currently over 90 percent of all workers in the United States are covered by Social Security.

Which of the following would likely reduce income inequality?

(Last Word) Median wealth in the United States in 2013

As the area between the Lorenz curve and diagonal gets larger, the Gini ratio

The earned-income tax credit

Each of the following contributes to income inequality except

When the occupational choices of women or minorities are restricted, this results in

The U.S. poverty rate for the elderly (65 and over) is higher than for the general population.

In the United States since 1975, the poor have gotten poorer and the rich have gotten richer in both relative and absolute terms.

Limits, Alternatives, and Choices

The Market System and the Circular Flow

Demand, Supply, and Market Equilibrium

Market Failures: Public Goods and Externalities

Governments Role and Government Failure

Elasticity

Utility Maximization

Behavioral Economics

Businesses and the Costs of Production

Pure Competition in the Short Run

Pure Competition in the Long Run

Pure Monopoly

Monopolistic Competition

Oligopoly and Strategic Behavior

Technology, Rd, and Efficiency

The Demand for Resources

Wage Determination

Rent, Interest, and Profit

Natural Resource and Energy Economics

Public Finance: Expenditures and Taxes

Antitrust Policy and Regulation

Agriculture: Economics and Policy

Health Care

Immigration

International Trade

The Balance of Payments, Exchange Rates, and Trade Deficits

The Economics of Developing Countries

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