Question 1

Which of the following is true of capital markets during the 1980s?

Accepted Answer

A) The capital markets were more profitable as compared to the 1990s. 
B) The mortgages available to buy a house were mostly from abroad. 
C) The majority of financial capital was locally generated. 
D) The capital gains tax was at an all-time low of 10%. 
A) The capital markets were more profitable as compared to the 1990s. 
B) The mortgages available to buy a house were mostly from abroad. 
C) The majority of financial capital was locally generated. 
D) The capital gains tax was at an all-time low of 10%. C

Question 2

If the capital gains tax rate in 2007 had remained the same as in mid-1970s

Accepted Answer

A) far fewer gains would have been realized. 
B) more gains would have reported to the IRS. 
C) the top 1 percent share of income would have been more than 30%. 
D) the top 1 percent share of income would have been less than 7%. 
A) far fewer gains would have been realized. 
B) more gains would have reported to the IRS. 
C) the top 1 percent share of income would have been more than 30%. 
D) the top 1 percent share of income would have been less than 7%. A

Question 3

If the tax-returns and capital gains effect were accounted for in the measurement of income inequality, _____.

Accepted Answer

A) the top 1% share of income would have tripled from 1978 to 2007 
B) the top 1% share of income would have remained at 8% in 1978 and 2007 
C) the top 1% share of income would have less than doubled in value from 1978 to 2007 
D) the top 1% share of income would have decreased by 1.4% from 1978 to 2007 
A) the top 1% share of income would have tripled from 1978 to 2007 
B) the top 1% share of income would have remained at 8% in 1978 and 2007 
C) the top 1% share of income would have less than doubled in value from 1978 to 2007 
D) the top 1% share of income would have decreased by 1.4% from 1978 to 2007 C

Question 4

According to the Pew Charitable Trust methodology for identifying the middle class, if people near the boundary between the upper middle and highest income class lose income, the middle class will ___

Accepted Answer

A) shrink, but that is unambiguously a good thing. 
B) shrink, and that is unambiguously a bad thing. 
C) increase, but that is unambiguously a good thing. 
D) increase, and that is unambiguously a bad thing. 
A) shrink, but that is unambiguously a good thing. 
B) shrink, and that is unambiguously a bad thing. 
C) increase, but that is unambiguously a good thing. 
D) increase, and that is unambiguously a bad thing.

Question 5

Which of the following is true of the capital gains tax rates?

Accepted Answer

A) Lower rates of tax discourage realization. 
B) Lower rates of tax encourage tax avoidance. 
C) Higher rates of tax encourage realization. 
D) Higher rates of tax encourage tax avoidance. 
A) Lower rates of tax discourage realization. 
B) Lower rates of tax encourage tax avoidance. 
C) Higher rates of tax encourage realization. 
D) Higher rates of tax encourage tax avoidance.

Question 6

Which of the following acted as a counterweight to increasing income inequality during 1960-1980?

Accepted Answer

A) A decrease in inheritance tax rates. 
B) A decline of union-represented manufacturing employees. 
C) An increase in the number of two-earner households. 
D) An increase in the tax rates on carried interests. 
A) A decrease in inheritance tax rates. 
B) A decline of union-represented manufacturing employees. 
C) An increase in the number of two-earner households. 
D) An increase in the tax rates on carried interests.

Question 7

Which of the following is a feature of data collection on wealth concentrations in the United States?

Accepted Answer

A) Oversampling of the high-income households 
B) Oversampling of the low-income households 
C) Under sampling of the high-income households 
D) Under sampling of the low-income households 
A) Oversampling of the high-income households 
B) Oversampling of the low-income households 
C) Under sampling of the high-income households 
D) Under sampling of the low-income households

Question 8

Systemic income inequality peaked at the time of the tech boom in the _____ and peaked again just _____.

Accepted Answer

A) 1990s; prior to the financial crisis 
B) 1970s. after the financial crisis 
C) 1960s; after the financial crisis 
D) 1970s; prior to the financial crisis 
A) 1990s; prior to the financial crisis 
B) 1970s. after the financial crisis 
C) 1960s; after the financial crisis 
D) 1970s; prior to the financial crisis

Question 9

According to the Pew Charitable Trust methodology for identifying the middle class, if people near the boundary between the lowest and the lower middle income class lose income, the middle class will ___

Accepted Answer

A) shrink, but that is unambiguously a good thing. 
B) shrink, and that is unambiguously a bad thing. 
C) increase, and that is unambiguously a good thing. 
D) increase, and that is unambiguously a bad thing. 
A) shrink, but that is unambiguously a good thing. 
B) shrink, and that is unambiguously a bad thing. 
C) increase, and that is unambiguously a good thing. 
D) increase, and that is unambiguously a bad thing.

Question 10

A graphical portrayal of the income distribution

Accepted Answer

A) is like a bell curve. 
B) is a horizontal line (there is an equal number of people at every income level). 
C) is an inverse bell curve with a large number of people at the low end and a large number of people at the high end. 
D) is highly concentrated at low and moderate incomes with fewer and fewer people in each income category as incomes increase. 
A) is like a bell curve. 
B) is a horizontal line (there is an equal number of people at every income level). 
C) is an inverse bell curve with a large number of people at the low end and a large number of people at the high end. 
D) is highly concentrated at low and moderate incomes with fewer and fewer people in each income category as incomes increase.

Question 11

Which of the following aspects of global change benefitted people at the higher end of the income scale in the U.S?

Accepted Answer

A) The increase in U.S. imports from the rest of the world 
B) The movement of global capital 
C) The increase in the level of foreign investment in the U.S. 
D) The fall in global oil prices 
A) The increase in U.S. imports from the rest of the world 
B) The movement of global capital 
C) The increase in the level of foreign investment in the U.S. 
D) The fall in global oil prices

Question 12

During 1989 to 2015, the wealth share of the top 1 percent:

Accepted Answer

A) grew from 30% to 36% with the rise in the stock market during the 1990s. 
B) grew from 67% to 74.5% despite the financial crisis in 2007. 
C) remained relatively stable around 45%. 
D) dropped from 2.5% to 1.1% due to the bursting of the housing bubble. 
A) grew from 30% to 36% with the rise in the stock market during the 1990s. 
B) grew from 67% to 74.5% despite the financial crisis in 2007. 
C) remained relatively stable around 45%. 
D) dropped from 2.5% to 1.1% due to the bursting of the housing bubble.

Question 13

Which of the following is a reason behind increase in household income and wealth inequalities in the U.S?

Accepted Answer

A) Increase in manufacturing jobs 
B) Increase in robotic production 
C) Decrease in international competition in the manufacturing sector 
D) Increase in the production of consumer durables during the 1990s 
A) Increase in manufacturing jobs 
B) Increase in robotic production 
C) Decrease in international competition in the manufacturing sector 
D) Increase in the production of consumer durables during the 1990s

Question 14

According to the Pew Charitable Trust methodology for identifying the middle class, for the period from 1971 to 2015, the lowest income class has

Accepted Answer

A) increased from 16% to 20% of the population. 
B) increased from 6% to 30% of the population. 
C) decreased from 20% to 16% of the population. 
D) decreased from 30% to 6% of the population. 
A) increased from 16% to 20% of the population. 
B) increased from 6% to 30% of the population. 
C) decreased from 20% to 16% of the population. 
D) decreased from 30% to 6% of the population.

Question 15

During the 2000s, it was observed that:

Accepted Answer

A) systemic inequality was the largest in three decades. 
B) the measure of inequality was highly variable. 
C) income inequality was at an all-time low. 
D) the average income share of the top 1% of income earners was below 7%. 
A) systemic inequality was the largest in three decades. 
B) the measure of inequality was highly variable. 
C) income inequality was at an all-time low. 
D) the average income share of the top 1% of income earners was below 7%.

Question 16

Which of the following is true of the relationship between income inequality and public policy in the U.S. since the 1980s?

Accepted Answer

A) Public policy has been more favorable to those at the high end of the income distribution resulting in an increase in income inequalities. 
B) Public policy has been more favorable to those at the low end of the income distribution resulting in an increase in income inequalities. 
C) Public policy has been less favorable to those at the high end of the income distribution resulting in a decrease in income inequalities. 
D) Public policy has been less favorable to those at the low end of the income distribution resulting in a decrease in income inequalities. 
A) Public policy has been more favorable to those at the high end of the income distribution resulting in an increase in income inequalities. 
B) Public policy has been more favorable to those at the low end of the income distribution resulting in an increase in income inequalities. 
C) Public policy has been less favorable to those at the high end of the income distribution resulting in a decrease in income inequalities. 
D) Public policy has been less favorable to those at the low end of the income distribution resulting in a decrease in income inequalities.

Question 17

Alex, a resident of the United States, has accrued capital gains and she dies prior to the realization of her gains. Which of the following is true of Alex's capital gains?

Accepted Answer

A) Her capital gains are tax free. 
B) Her heirs cannot sell her asset immediately. 
C) Her heirs cannot hold her assets. 
D) Her capital gains are transferred to government revenue. 
A) Her capital gains are tax free. 
B) Her heirs cannot sell her asset immediately. 
C) Her heirs cannot hold her assets. 
D) Her capital gains are transferred to government revenue.

Question 18

Which of the following is true of investment-based income?

Accepted Answer

A) Tax rates on carried investment are higher now as compared to 1980s. 
B) Capital gains tax rates are higher now as compared to the 1980s. 
C) Capital gains are now completely tax-free as compared to the 1980s. 
D) Tax rates on carried investment are lower now as compared to 1980s. 
A) Tax rates on carried investment are higher now as compared to 1980s. 
B) Capital gains tax rates are higher now as compared to the 1980s. 
C) Capital gains are now completely tax-free as compared to the 1980s. 
D) Tax rates on carried investment are lower now as compared to 1980s.

Question 19

Which of the following is a reason why the income of the wealthy people in the U.S. has continued to increase?

Accepted Answer

A) Fall in American saving rates 
B) Decrease in profits earned in capital markets 
C) Increase in inheritance tax rates 
D) Increase in capital gains tax rates 
A) Fall in American saving rates 
B) Decrease in profits earned in capital markets 
C) Increase in inheritance tax rates 
D) Increase in capital gains tax rates

Question 20

Which of the following resulted from the collapse of the housing bubble in the United States during 2007?

Accepted Answer

A) The mean wealth was 6.5 times higher than the median households' wealth in 2010. 
B) The mean wealth was 6.5 times lower than the median households' wealth in 2010. 
C) The average households' wealth declined by 40 percent in 2010. 
D) The total households' wealth declined by 15 percent in 2010. 
A) The mean wealth was 6.5 times higher than the median households' wealth in 2010. 
B) The mean wealth was 6.5 times lower than the median households' wealth in 2010. 
C) The average households' wealth declined by 40 percent in 2010. 
D) The total households' wealth declined by 15 percent in 2010.

Exam 31: Income and Wealth Inequality

Which of the following is true of capital markets during the 1980s?

If the capital gains tax rate in 2007 had remained the same as in mid-1970s

If the tax-returns and capital gains effect were accounted for in the measurement of income inequality, _____.

According to the Pew Charitable Trust methodology for identifying the middle class, if people near the boundary between the upper middle and highest income class lose income, the middle class will ___

Which of the following is true of the capital gains tax rates?

Which of the following acted as a counterweight to increasing income inequality during 1960-1980?

Which of the following is a feature of data collection on wealth concentrations in the United States?

Systemic income inequality peaked at the time of the tech boom in the _____ and peaked again just _____.

According to the Pew Charitable Trust methodology for identifying the middle class, if people near the boundary between the lowest and the lower middle income class lose income, the middle class will ___

A graphical portrayal of the income distribution

Which of the following aspects of global change benefitted people at the higher end of the income scale in the U.S?

During 1989 to 2015, the wealth share of the top 1 percent:

Which of the following is a reason behind increase in household income and wealth inequalities in the U.S?

According to the Pew Charitable Trust methodology for identifying the middle class, for the period from 1971 to 2015, the lowest income class has

During the 2000s, it was observed that:

Which of the following is true of the relationship between income inequality and public policy in the U.S. since the 1980s?

Alex, a resident of the United States, has accrued capital gains and she dies prior to the realization of her gains. Which of the following is true of Alex's capital gains?

Which of the following is true of investment-based income?

Which of the following is a reason why the income of the wealthy people in the U.S. has continued to increase?

Which of the following resulted from the collapse of the housing bubble in the United States during 2007?

Economics: the Study of Opportunity Cost

Supply and Demand

The Concept of Elasticity and Consumer and Producer Surplus

Firm Production, Cost, and Revenue

Perfect Competition, Monopoly, and Economic Versus Normal Profit

Every Macroeconomic Word You Ever Heard: Gross Domestic Product, Inflation, Unemployment, Recession, Depression

Interest Rates and Present Value

Aggregate Demand and Aggregate Supply

Fiscal Policy

Monetary Policy

Federal Spending

Federal Deficits, Surpluses, and the National Debt

The Housing Bubble

The Recession of 2007-2009: Causes and Policy Responses

Is Economic Stagnation the New Normal

Is the Fiscalsky Falling: An Examination of Unfunded Social Security, Medicare, and State and Local Pension Liabilities

International Trade: Does It Jeopardize American Jobs

International Finance and Exchange Rates

The European Debt Crisis

Economic Growth and Development

Nafta, Gatt, Wto: Are Trade Agreements Good for Us

The Line Between Legal and Illegal Goods

Natural Resources, the Environment, and Climate Change

Health Care

Government-Provided Health Insurance: Medicaid, Medicare, and the Child Health Insurance Program

The Economics of Prescription Drugs

So You Want to Be a Lawyer: Economics and the Law

The Economics of Crime

Antitrust

The Economics of Race and Discrimination

Farm Policy

Minimum Wage

Ticket Brokers and Ticket Scalping

Rent Control

Economics of K-12 Education

Economics of College and University Education

Poverty and Welfare

Head Start

Social Security

Personal Income Taxes

Energy Prices

If We Build It, Will They Come and Other Sports Questions

The Stock Market Crashes

Unions

Walmart: Always Low Prices and Low Wages- Always

The Economic Impact of Casino Gambling

The Economics of Terrorism

Filters

Systemic income inequality peaked at the time of the tech boom in the _ and peaked again just _.