Question 1

Which of the following is a true statement regarding the U.S.earnings distribution?

Accepted Answer

A) Because the distribution is skewed to the right,the mean exceeds the mode 
B) Because the distribution is skewed to the right,the mode exceeds the mean 
C) Because the distribution is skewed to the left,the mean exceeds the mode 
D) Because the distribution is skewed to the left,the mode exceeds the median 
A) Because the distribution is skewed to the right,the mean exceeds the mode 
B) Because the distribution is skewed to the right,the mode exceeds the mean 
C) Because the distribution is skewed to the left,the mean exceeds the mode 
D) Because the distribution is skewed to the left,the mode exceeds the median A

Question 2

refer to the diagram 
 
-If an increase in the minimum wage increases the earnings of low-income individuals relative to high-income individuals,this will cause the Lorenz curve of earnings to shift from:

Accepted Answer

A) A to B and the Gini coefficient will rise 
B) A to B and the Gini coefficient will fall 
C) B to A and the Gini coefficient will rise 
D) B to A and the Gini coefficient will fall 
A) A to B and the Gini coefficient will rise 
B) A to B and the Gini coefficient will fall 
C) B to A and the Gini coefficient will rise 
D) B to A and the Gini coefficient will fall D

Question 3

If an increase in the sales tax reduces the earnings of low-income individuals relative to high-income individuals:

Accepted Answer

A) the Gini coefficient would fall 
B) the Gini coefficient would rise 
C) the Gini coefficient would not change 
D) the Lorenz curve would shift closer to the diagonal 
A) the Gini coefficient would fall 
B) the Gini coefficient would rise 
C) the Gini coefficient would not change 
D) the Lorenz curve would shift closer to the diagonal B

Question 4

Compared to the private sector,the public sector earnings distribution tends to be:

Accepted Answer

A) more unequal because government workers tend to be employed in service occupations 
B) more unequal because government pay scales are generally higher 
C) less unequal because of the relatively large number of management positions in government 
D) less unequal because blue-collar employees are generally paid more and white-collar employees are generally paid less than their private-sector counterparts 
A) more unequal because government workers tend to be employed in service occupations 
B) more unequal because government pay scales are generally higher 
C) less unequal because of the relatively large number of management positions in government 
D) less unequal because blue-collar employees are generally paid more and white-collar employees are generally paid less than their private-sector counterparts

Question 5

The distribution of earnings has become more unequal:

Accepted Answer

A) among women but not among men 
B) in part due to the reduction in the college wage premium in the 1980s 
C) in part due to greater import competition in the 1980s 
D) in part due to a reduction in the number of young and inexperienced workers in the 1990s 
A) among women but not among men 
B) in part due to the reduction in the college wage premium in the 1980s 
C) in part due to greater import competition in the 1980s 
D) in part due to a reduction in the number of young and inexperienced workers in the 1990s

Question 6

If earnings inequality continues to increase,the Lorenz curve will shift:

Accepted Answer

A) away from the diagonal and the Gini coefficient will rise 
B) away from the diagonal and the Gini coefficient will fall 
C) toward the diagonal and the Gini coefficient will rise 
D) towards the diagonal and the Gini coefficient will fall 
A) away from the diagonal and the Gini coefficient will rise 
B) away from the diagonal and the Gini coefficient will fall 
C) toward the diagonal and the Gini coefficient will rise 
D) towards the diagonal and the Gini coefficient will fall

Question 7

refer to the diagram
 
-An increase in earnings inequality would be shown by a:

Accepted Answer

A) shift from line A to line B 
B) shift from lime B to line A 
C) movement up to the right along line A 
D) movement down to the left along line A 
A) shift from line A to line B 
B) shift from lime B to line A 
C) movement up to the right along line A 
D) movement down to the left along line A

Question 8

The median annual earnings in 2010 for full-time workers in the U.S.was approximately:

Accepted Answer

A) $35,000 
B) $39,000 
C) $42,000 
D) $61,000 
A) $35,000 
B) $39,000 
C) $42,000 
D) $61,000

Question 9

Research by Solon on intergenerational mobility across countries indicates that:

Accepted Answer

A) countries with greater earnings inequality tend to have less intergenerational earnings mobility 
B) less developed countries tend to have greater intergenerational earnings mobility 
C) countries with higher returns to investment in human capital have greater intergenerational earnings mobility 
D) intergenerational earnings mobility is greater in the U.S.than in the United Kingdom 
A) countries with greater earnings inequality tend to have less intergenerational earnings mobility 
B) less developed countries tend to have greater intergenerational earnings mobility 
C) countries with higher returns to investment in human capital have greater intergenerational earnings mobility 
D) intergenerational earnings mobility is greater in the U.S.than in the United Kingdom

Question 10

Including fringe benefits with earnings,the Lorenz curve moves:

Accepted Answer

A) away from the diagonal and the Gini coefficient rises 
B) away from the diagonal and the Gini coefficient falls 
C) toward the diagonal and the Gini coefficient rises 
D) toward the diagonal and the Gini coefficient falls 
A) away from the diagonal and the Gini coefficient rises 
B) away from the diagonal and the Gini coefficient falls 
C) toward the diagonal and the Gini coefficient rises 
D) toward the diagonal and the Gini coefficient falls

Question 11

Those persons with greater amounts of formal education tend to have:

Accepted Answer

A) less on-the-job training,which increases the skewness of the earnings distribution 
B) less on-the-job training,which decreases the skewness of the earnings distribution 
C) more on-the-job training,which increases the skewness of the earnings distribution 
D) more on-the-job training,which decreases the skewness of the earnings distribution 
A) less on-the-job training,which increases the skewness of the earnings distribution 
B) less on-the-job training,which decreases the skewness of the earnings distribution 
C) more on-the-job training,which increases the skewness of the earnings distribution 
D) more on-the-job training,which decreases the skewness of the earnings distribution

Question 12

-If all workers were to receive the same earnings:

Accepted Answer

A) the Gini coefficient of earnings would be 1 
B) the Gini coefficient of earnings would be 0 
C) the earnings distribution would have a normal bell-shaped appearance 
D) the Lorenz curve would be skewed to the left 
A) the Gini coefficient of earnings would be 1 
B) the Gini coefficient of earnings would be 0 
C) the earnings distribution would have a normal bell-shaped appearance 
D) the Lorenz curve would be skewed to the left

Question 13

refer to the following diagram which shows the earnings distribution for a small hypothetical economy (all figures in thousands). 
-The mode of this distribution is:

Accepted Answer

A) 10,000 workers 
B) between $20,000 and $30,000 
C) between $30,000 and $40,000 
D) between $40,000 and $50,000 
A) 10,000 workers 
B) between $20,000 and $30,000 
C) between $30,000 and $40,000 
D) between $40,000 and $50,000

Question 14

Which one of the following is a true statement?

Accepted Answer

A) The earnings distribution for full-time workers is less skewed than the one for all workers 
B) When fringe benefits are included,the earnings distribution narrows 
C) The distribution of income is no different from the distribution of earnings 
D) The Lorenz curve shows the extent of personal mobility within the distribution of earnings 
A) The earnings distribution for full-time workers is less skewed than the one for all workers 
B) When fringe benefits are included,the earnings distribution narrows 
C) The distribution of income is no different from the distribution of earnings 
D) The Lorenz curve shows the extent of personal mobility within the distribution of earnings

Question 15

Discrimination contributes to earnings inequality through:

Accepted Answer

A) pay discrimination only 
B) pay discrimination and occupational segregation only 
C) pay discrimination,occupational segregation,and human capital discrimination 
D) chance and risk taking,which reduce the Gini coefficient 
A) pay discrimination only 
B) pay discrimination and occupational segregation only 
C) pay discrimination,occupational segregation,and human capital discrimination 
D) chance and risk taking,which reduce the Gini coefficient

Question 16

The Gini coefficient measures:

Accepted Answer

A) the area under the Lorenz curve 
B) the area above the Lorenz curve 
C) twice the area between the Lorenz curve and the line of equality 
D) half the area between the Lorenz curve and the line of equality 
A) the area under the Lorenz curve 
B) the area above the Lorenz curve 
C) twice the area between the Lorenz curve and the line of equality 
D) half the area between the Lorenz curve and the line of equality

Question 17

refer to the following quintile earnings distribution data$$\begin{array} { l r } 
\text { Quintile } & \text { Percent } \
\text { Lowest } 20 \% & 4 \% \
\text { Second } 20 \% & 11 \% \
\text { Third } 20 \% & 16 \% \
\text { Fourth } 20 \% & 24 \% \
\text { Highest } 20 \% & 45 \%
\end{array}$$
-If one were to draw a Lorenz curve from the data,what point would be plotted corresponding to "40%" on the horizontal axis?

Accepted Answer

A) 11% 
B) 15% 
C) 40% 
D) 60% 
A) 11% 
B) 15% 
C) 40% 
D) 60%

Question 18

The mean annual earnings in 2010 for full-time workers in the U.S.was approximately:

Accepted Answer

A) $31,000 
B) $35,000 
C) $46,000 
D) $54,000 
A) $31,000 
B) $35,000 
C) $46,000 
D) $54,000

Question 19

In 2010,the bottom 20% of all full-time workers in the U.S.received _____ of total earnings,while the top 20% received _____.

Accepted Answer

A) 2%,61% 
B) 3%,74% 
C) 7%,45% 
D) 12%,37% 
A) 2%,61% 
B) 3%,74% 
C) 7%,45% 
D) 12%,37%

Question 20

refer to the following diagram which shows the earnings distribution for a small hypothetical economy (all figures in thousands). 
-The number of persons with annual earnings between $30,000 and $50,000 is:

Accepted Answer

A) 7,000 
B) 8,000 
C) 14,000 
D) 20,000 
A) 7,000 
B) 8,000 
C) 14,000 
D) 20,000

Which of the following is a true statement regarding the U.S.earnings distribution?

refer to the diagram -If an increase in the minimum wage increases the earnings of low-income individuals relative to high-income individuals,this will cause the Lorenz curve of earnings to shift from:

If an increase in the sales tax reduces the earnings of low-income individuals relative to high-income individuals:

Compared to the private sector,the public sector earnings distribution tends to be:

The distribution of earnings has become more unequal:

If earnings inequality continues to increase,the Lorenz curve will shift:

refer to the diagram -An increase in earnings inequality would be shown by a:

The median annual earnings in 2010 for full-time workers in the U.S.was approximately:

Research by Solon on intergenerational mobility across countries indicates that:

Including fringe benefits with earnings,the Lorenz curve moves:

Those persons with greater amounts of formal education tend to have:

-If all workers were to receive the same earnings:

refer to the following diagram which shows the earnings distribution for a small hypothetical economy (all figures in thousands). -The mode of this distribution is:

Which one of the following is a true statement?

Discrimination contributes to earnings inequality through:

The Gini coefficient measures:

refer to the following quintile earnings distribution data Quintile Percent Lowest 20\% 4\% Second 20\% 11\% Third 20\% 16\% Fourth 20\% 24\% Highest 20\% 45\% -If one were to draw a Lorenz curve from the data,what point would be plotted corresponding to "40%" on the horizontal axis?

The mean annual earnings in 2010 for full-time workers in the U.S.was approximately:

In 2010,the bottom 20% of all full-time workers in the U.S.received _ of total earnings,while the top 20% received _.

refer to the following diagram which shows the earnings distribution for a small hypothetical economy (all figures in thousands). -The number of persons with annual earnings between $30,000 and $50,000 is:

Labor Economics: Introduction and Overview

The Theory of Individual Labor Supply

Population, Participation Rates, and Hours of Work

Labor Quality: Investing in Human Capital

The Demand for Labor

Wage Determination and the Allocation of Labor

Alternative Pay Schemes and Labor Efficiency

The Wage Structure

Mobility,Migration,and Efficiency

Labor Unions and Collective Bargaining

The Economic Impact of Unions

Government and the Labor Market: Employment, Expenditures, and Taxation

Government and the Labor Market: Legislation and Regulation

Labor Market Discrimination

Job Search: External and Internal

Labor Productivity: Wages,Prices,and Employment

Employment and Unemployment

Filters

Exam 16: The Distribution of Personal Earnings

Which of the following is a true statement regarding the U.S.earnings distribution?

refer to the diagram -If an increase in the minimum wage increases the earnings of low-income individuals relative to high-income individuals,this will cause the Lorenz curve of earnings to shift from:

If an increase in the sales tax reduces the earnings of low-income individuals relative to high-income individuals:

Compared to the private sector,the public sector earnings distribution tends to be:

The distribution of earnings has become more unequal:

If earnings inequality continues to increase,the Lorenz curve will shift:

refer to the diagram -An increase in earnings inequality would be shown by a:

The median annual earnings in 2010 for full-time workers in the U.S.was approximately:

Research by Solon on intergenerational mobility across countries indicates that:

Including fringe benefits with earnings,the Lorenz curve moves:

Those persons with greater amounts of formal education tend to have:

-If all workers were to receive the same earnings:

refer to the following diagram which shows the earnings distribution for a small hypothetical economy (all figures in thousands). -The mode of this distribution is:

Which one of the following is a true statement?

Discrimination contributes to earnings inequality through:

The Gini coefficient measures:

refer to the following quintile earnings distribution data Quintile Percent Lowest 20\% 4\% Second 20\% 11\% Third 20\% 16\% Fourth 20\% 24\% Highest 20\% 45\% -If one were to draw a Lorenz curve from the data,what point would be plotted corresponding to "40%" on the horizontal axis?

The mean annual earnings in 2010 for full-time workers in the U.S.was approximately:

In 2010,the bottom 20% of all full-time workers in the U.S.received _____ of total earnings,while the top 20% received _____.

refer to the following diagram which shows the earnings distribution for a small hypothetical economy (all figures in thousands). -The number of persons with annual earnings between $30,000 and $50,000 is:

Labor Economics: Introduction and Overview

The Theory of Individual Labor Supply

Population, Participation Rates, and Hours of Work

Labor Quality: Investing in Human Capital

The Demand for Labor

Wage Determination and the Allocation of Labor

Alternative Pay Schemes and Labor Efficiency

The Wage Structure

Mobility,Migration,and Efficiency

Labor Unions and Collective Bargaining

The Economic Impact of Unions

Government and the Labor Market: Employment, Expenditures, and Taxation

Government and the Labor Market: Legislation and Regulation

Labor Market Discrimination

Job Search: External and Internal

Labor Productivity: Wages,Prices,and Employment

Employment and Unemployment

Filters

In 2010,the bottom 20% of all full-time workers in the U.S.received _ of total earnings,while the top 20% received _.