Question 1

Which of the following is true of wealth concentration in the U.S during 1989 to 2007?

Accepted Answer

A) Wealth rose 60% for the the median household, but the mean rose 86%. 
B) Wealth decreased 20% for the median household, but the mean decreased by 15%. 
C) Wealth decreased 20% for the median household, but the mean increased by 15%. 
D) Wealth rose 86% for the the median household, but the mean rose 60%. 
A) Wealth rose 60% for the the median household, but the mean rose 86%. 
B) Wealth decreased 20% for the median household, but the mean decreased by 15%. 
C) Wealth decreased 20% for the median household, but the mean increased by 15%. 
D) Wealth rose 86% for the the median household, but the mean rose 60%.

Question 2

As a result of _____, the incomes of the top 1% of income earners during the 1970s were understated.

Accepted Answer

A) the increase in consumption levels 
B) the expansion of the non-refundable ETIC 
C) the special tax treatment of capital gains 
D) the rapid decrease in the proportion of Americans filing tax returns 
A) the increase in consumption levels 
B) the expansion of the non-refundable ETIC 
C) the special tax treatment of capital gains 
D) the rapid decrease in the proportion of Americans filing tax returns

Question 3

Payments of capital gains taxes _____.

Accepted Answer

A) are voluntary and easily avoided 
B) cannot be deferred 
C) depend on whether the gains are short-term or long-term 
D) are not forgiven at death 
A) are voluntary and easily avoided 
B) cannot be deferred 
C) depend on whether the gains are short-term or long-term 
D) are not forgiven at death

Question 4

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

Accepted Answer

A) increased from 71% to 80% of the population. 
B) increased from 50% to 80% of the population. 
C) decreased from 80% to 71% of the population. 
D) decreased from 80% to 50% of the population. 
A) increased from 71% to 80% of the population. 
B) increased from 50% to 80% of the population. 
C) decreased from 80% to 71% of the population. 
D) decreased from 80% to 50% of the population.

Question 5

James is a resident of the U.S. and has accrued capital gains on an asset. If James' heirs hold the asset at the time of his death, which of the following is true?

Accepted Answer

A) His heirs can sell the asset and its gains tax free. 
B) His heirs will have to pay tax on the accrual of the capital gain. 
C) The purchase price of the asset will be the difference between the value of the asset and the amount of tax payable. 
D) The purchase price of the asset will equal the value of the asset on the day James died. 
A) His heirs can sell the asset and its gains tax free. 
B) His heirs will have to pay tax on the accrual of the capital gain. 
C) The purchase price of the asset will be the difference between the value of the asset and the amount of tax payable. 
D) The purchase price of the asset will equal the value of the asset on the day James died.

Question 6

In the study conducted by Miles Corak, which of the following countries had the strongest relationship between parental and child income?

Accepted Answer

A) United States 
B) United Kingdom 
C) France 
D) Denmark 
A) United States 
B) United Kingdom 
C) France 
D) Denmark

Question 7

Which of the following is a reason for the decrease in household income and wealth inequalities in the U.S during 1960-1980?

Accepted Answer

A) Increase in manufacturing jobs 
B) Increase in robotic production 
C) Increase in the participation of women in the labor force 
D) Increase in the household saving rate by low-income households 
A) Increase in manufacturing jobs 
B) Increase in robotic production 
C) Increase in the participation of women in the labor force 
D) Increase in the household saving rate by low-income households

Question 8

Which of the following is true of the capital gain tax rate in the U.S from 1968 to 2007?

Accepted Answer

A) It reached a peak of 40% in the 1970s. 
B) It was at an all-time low level of 15% during the 1980s. 
C) It averaged around 30% from 2003-2007. 
D) It remained constant at 10% in the 1990s. 
A) It reached a peak of 40% in the 1970s. 
B) It was at an all-time low level of 15% during the 1980s. 
C) It averaged around 30% from 2003-2007. 
D) It remained constant at 10% in the 1990s.

Question 9

Which of the following led to an increase in the proportion of population filing for income tax returns from 1971 to 1998?

Accepted Answer

A) An increase in the population below poverty line. 
B) A decrease in the proportion of people filing for returns as "single head of household." 
C) An increase in the number of senior citizens working at part-time jobs as compared to previous generations. 
D) An increase in the number of people who were unmarried or divorced but had children. 
A) An increase in the population below poverty line. 
B) A decrease in the proportion of people filing for returns as "single head of household." 
C) An increase in the number of senior citizens working at part-time jobs as compared to previous generations. 
D) An increase in the number of people who were unmarried or divorced but had children.

Question 10

From the following, identify a reason for increased income inequalities in the U.S.

Accepted Answer

A) Increase in the profitability of capital markets 
B) Increase in the inheritance tax rates 
C) Increase in labor-intensive manufacturing jobs 
D) Increase in the tax rates on carried interests 
A) Increase in the profitability of capital markets 
B) Increase in the inheritance tax rates 
C) Increase in labor-intensive manufacturing jobs 
D) Increase in the tax rates on carried interests

Exam 31: Income and Wealth Inequality

Which of the following is true of wealth concentration in the U.S during 1989 to 2007?

As a result of _____, the incomes of the top 1% of income earners during the 1970s were understated.

Payments of capital gains taxes _____.

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

James is a resident of the U.S. and has accrued capital gains on an asset. If James' heirs hold the asset at the time of his death, which of the following is true?

In the study conducted by Miles Corak, which of the following countries had the strongest relationship between parental and child income?

Which of the following is a reason for the decrease in household income and wealth inequalities in the U.S during 1960-1980?

Which of the following is true of the capital gain tax rate in the U.S from 1968 to 2007?

Which of the following led to an increase in the proportion of population filing for income tax returns from 1971 to 1998?

From the following, identify a reason for increased income inequalities in the U.S.

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

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