Question 1

Which of the following is not a social insurance program?

Accepted Answer

A)  TANF (Temporary Assistance for Needy Families). 
B)  Medicaid. 
C)  Supplemental Security Income. 
D)  Unemployment compensation. 
A)  TANF (Temporary Assistance for Needy Families). 
B)  Medicaid. 
C)  Supplemental Security Income. 
D)  Unemployment compensation.

Question 2

Wealth:

Accepted Answer

A)  is a flow concept. 
B)  refers to accumulated financial assets only. 
C)  refers to accumulated real assets only. 
D)  refers to accumulated financial and real assets. 
A)  is a flow concept. 
B)  refers to accumulated financial assets only. 
C)  refers to accumulated real assets only. 
D)  refers to accumulated financial and real assets.

Question 3

Which of the following measurement issues makes interpretation of U.S.poverty rates difficult?

Accepted Answer

A)  Poverty statistics measure income rather than consumption,and some families may be able to consume above the official poverty line. 
B)  The high cost of living in rural areas tends to result in the understatement of poverty. 
C)  Most people below the poverty line have substantial unreported income. 
D)  The poverty rate is adjusted for every urban and rural area,so people's poverty status changes whenever they move. 
A)  Poverty statistics measure income rather than consumption,and some families may be able to consume above the official poverty line. 
B)  The high cost of living in rural areas tends to result in the understatement of poverty. 
C)  Most people below the poverty line have substantial unreported income. 
D)  The poverty rate is adjusted for every urban and rural area,so people's poverty status changes whenever they move.

Question 4

Which of the following Gini ratios indicates the highest degree of income inequality?

Accepted Answer

A)  0.78. 
B)  0.65. 
C)  0.29. 
D)  0.42. 
A)  0.78. 
B)  0.65. 
C)  0.29. 
D)  0.42.

Question 5

People's incomes are relatively low when they are young,reach a peak in middle age,and then decline.This fact helps explain:

Accepted Answer

A)  the wide variations of Gini ratios among nations. 
B)  the equality-efficiency trade-off. 
C)  why the lifetime distribution of income is more equal than the distribution in any given year. 
D)  why the lifetime distribution of income is less equal than the distribution in any given year. 
A)  the wide variations of Gini ratios among nations. 
B)  the equality-efficiency trade-off. 
C)  why the lifetime distribution of income is more equal than the distribution in any given year. 
D)  why the lifetime distribution of income is less equal than the distribution in any given year.

Question 6

Answer the question on the basis of the following information.Suppose the members of population A,consisting of Al,Bob,Curt,Doris,and Ellie,receive annual incomes of $5,000,$2,500,$1,250,$750,and $500,respectively. Refer to the given information.What percentage of total income is received by the richest quintile?

Accepted Answer

A)  50. 
B)  5. 
C)  25. 
D)  20. 
A)  50. 
B)  5. 
C)  25. 
D)  20.

Question 7

Suppose an employer is biased against African Americans.If his discrimination coefficient is $2,the employer will:

Accepted Answer

A)  randomly hire African-American and white workers if the actual African-American-white wage differential is more than $2. 
B)  randomly hire African-American and white workers if the actual African-American-white wage differential is less than $2. 
C)  hire only African Americans if the actual African-American-white wage differential is less than $2. 
D)  hire only whites if the actual African-American-white wage differential is less than $2. 
A)  randomly hire African-American and white workers if the actual African-American-white wage differential is more than $2. 
B)  randomly hire African-American and white workers if the actual African-American-white wage differential is less than $2. 
C)  hire only African Americans if the actual African-American-white wage differential is less than $2. 
D)  hire only whites if the actual African-American-white wage differential is less than $2.

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

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

Question 10

Gomez argues that we need to increase the nation's output.Chang contends that our top priority should be a more equal distribution of income and output.It can be correctly stated that these two goals are:

Accepted Answer

A)  essentially unrelated. 
B)  complementary because the realization of one will promote fulfillment of the other. 
C)  at least partially competing because the redistribution of income might impair incentives to work and produce. 
D)  complementary because a more equal distribution of income always promotes economic growth. 
A)  essentially unrelated. 
B)  complementary because the realization of one will promote fulfillment of the other. 
C)  at least partially competing because the redistribution of income might impair incentives to work and produce. 
D)  complementary because a more equal distribution of income always promotes economic growth.

Question 11

Standard Census data on the distribution of income:

Accepted Answer

A)  take all taxes and transfer payments into account. 
B)  are before taxes in that they do not account for personal income and payroll taxes. 
C)  include noncash transfers. 
D)  exclude cash transfers. 
A)  take all taxes and transfer payments into account. 
B)  are before taxes in that they do not account for personal income and payroll taxes. 
C)  include noncash transfers. 
D)  exclude cash transfers.

Question 12

In the quintile distribution of income,the term "quintile" represents:

Accepted Answer

A)  5 percent of the income receivers. 
B)  10 percent of the income receivers. 
C)  20 percent of the income receivers. 
D)  25 percent of the income receivers. 
A)  5 percent of the income receivers. 
B)  10 percent of the income receivers. 
C)  20 percent of the income receivers. 
D)  25 percent of the income receivers.

Question 13

Minority workers are underrepresented and have less access to certain high-paying occupations.This illustrates:

Accepted Answer

A)  human-capital discrimination. 
B)  the crowding model. 
C)  the taste-for-discrimination model. 
D)  statistical discrimination. 
A)  human-capital discrimination. 
B)  the crowding model. 
C)  the taste-for-discrimination model. 
D)  statistical discrimination.

Question 14

The Gini ratio:

Accepted Answer

A)  measures the relative extent of poverty in a nation. 
B)  compares the income of persons,households,or households at the 90th percentile of the income distribution to the income at the 10th percentile. 
C)  is a numerical measure of the overall dispersion of income in a nation. 
D)  is found by dividing the entire area below and to the right of the diagonal in the Lorenz diagram by the area between the diagonal and Lorenz curve. 
A)  measures the relative extent of poverty in a nation. 
B)  compares the income of persons,households,or households at the 90th percentile of the income distribution to the income at the 10th percentile. 
C)  is a numerical measure of the overall dispersion of income in a nation. 
D)  is found by dividing the entire area below and to the right of the diagonal in the Lorenz diagram by the area between the diagonal and Lorenz curve.

Question 15

For which of the following income-maintenance programs is aggregate spending the greatest?

Accepted Answer

A)  Medicare. 
B)  Social Security. 
C)  Unemployment compensation. 
D)  TANF. 
A)  Medicare. 
B)  Social Security. 
C)  Unemployment compensation. 
D)  TANF.

Question 16

Housing subsidies for low-income households:

Accepted Answer

A)  represent a cash transfer. 
B)  are a part of the U.S.social insurance programs. 
C)  represent a noncash transfer. 
D)  conflict with the leaky-bucket analogy. 
A)  represent a cash transfer. 
B)  are a part of the U.S.social insurance programs. 
C)  represent a noncash transfer. 
D)  conflict with the leaky-bucket analogy.

Question 17

The U.S.poverty rate was considerably lower in 2011 than in 1960.

Accepted Answer

A) True 
 B)False

Question 18

Between 1995 and 2007 in the United States:

Accepted Answer

A)  average U.S.household wealth increased and median household wealth declined. 
B)  average U.S.household wealth declined and median household wealth increased. 
C)  both average and median U.S.household wealth declined. 
D)  both average and median U.S.household wealth increased. 
A)  average U.S.household wealth increased and median household wealth declined. 
B)  average U.S.household wealth declined and median household wealth increased. 
C)  both average and median U.S.household wealth declined. 
D)  both average and median U.S.household wealth increased.

Question 19

Insurance companies require male drivers under age 25 to pay higher insurance rates than female drivers under age 25.Craig Raymond,however,is a safer driver than the average female driver under age 25.Craig's higher insurance rate reflects:

Accepted Answer

A)  monopoly power. 
B)  statistical discrimination. 
C)  the insurance firm's taste for discrimination. 
D)  human-capital discrimination. 
A)  monopoly power. 
B)  statistical discrimination. 
C)  the insurance firm's taste for discrimination. 
D)  human-capital discrimination.

Question 20

After the implementation of TANF,the U.S.welfare rolls fell by more than one-half between 1996 and 2007.

Accepted Answer

A) True 
 B)False

Which of the following is not a social insurance program?

Wealth:

Which of the following measurement issues makes interpretation of U.S.poverty rates difficult?

Which of the following Gini ratios indicates the highest degree of income inequality?

People's incomes are relatively low when they are young,reach a peak in middle age,and then decline.This fact helps explain:

Suppose an employer is biased against African Americans.If his discrimination coefficient is $2,the employer will:

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

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

Gomez argues that we need to increase the nation's output.Chang contends that our top priority should be a more equal distribution of income and output.It can be correctly stated that these two goals are:

Standard Census data on the distribution of income:

In the quintile distribution of income,the term "quintile" represents:

Minority workers are underrepresented and have less access to certain high-paying occupations.This illustrates:

The Gini ratio:

For which of the following income-maintenance programs is aggregate spending the greatest?

Housing subsidies for low-income households:

The U.S.poverty rate was considerably lower in 2011 than in 1960.

Between 1995 and 2007 in the United States:

Insurance companies require male drivers under age 25 to pay higher insurance rates than female drivers under age 25.Craig Raymond,however,is a safer driver than the average female driver under age 25.Craig's higher insurance rate reflects:

After the implementation of TANF,the U.S.welfare rolls fell by more than one-half between 1996 and 2007.

Health Care

Immigration

An Introduction to Macroeconomics

Measuring Domestic Output and National Income

Economic Growth

Business Cycles, Unemployment, and Inflation

Basic Macroeconomic Relationships

The Aggregate Expenditures Model

Aggregate Demand and Aggregate Supply

The Balance of Payments, Exchange Rates, and Trade Deficits

Money, Banking, and Financial Institutions

Money Creation

Interest Rates and Monetary Policy

Financial Economics

Extending the Analysis of Aggregate Supply

Current Issues in Macro Theory and Policy

International Trade

The Balance of Payments, Exchange Rates, and Trade Deficits

The Economics of Developing Countries

The United States and the Global Economy

Filters

Exam 22: Income Inequality Poverty and Discrimination

Which of the following is not a social insurance program?

Wealth:

Which of the following measurement issues makes interpretation of U.S.poverty rates difficult?

Which of the following Gini ratios indicates the highest degree of income inequality?

People's incomes are relatively low when they are young,reach a peak in middle age,and then decline.This fact helps explain:

Suppose an employer is biased against African Americans.If his discrimination coefficient is $2,the employer will:

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

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

Gomez argues that we need to increase the nation's output.Chang contends that our top priority should be a more equal distribution of income and output.It can be correctly stated that these two goals are:

Standard Census data on the distribution of income:

In the quintile distribution of income,the term "quintile" represents:

Minority workers are underrepresented and have less access to certain high-paying occupations.This illustrates:

The Gini ratio:

For which of the following income-maintenance programs is aggregate spending the greatest?

Housing subsidies for low-income households:

The U.S.poverty rate was considerably lower in 2011 than in 1960.

Between 1995 and 2007 in the United States:

Insurance companies require male drivers under age 25 to pay higher insurance rates than female drivers under age 25.Craig Raymond,however,is a safer driver than the average female driver under age 25.Craig's higher insurance rate reflects:

After the implementation of TANF,the U.S.welfare rolls fell by more than one-half between 1996 and 2007.

Health Care

Immigration

An Introduction to Macroeconomics

Measuring Domestic Output and National Income

Economic Growth

Business Cycles, Unemployment, and Inflation

Basic Macroeconomic Relationships

The Aggregate Expenditures Model

Aggregate Demand and Aggregate Supply

The Balance of Payments, Exchange Rates, and Trade Deficits

Money, Banking, and Financial Institutions

Money Creation

Interest Rates and Monetary Policy

Financial Economics

Extending the Analysis of Aggregate Supply

Current Issues in Macro Theory and Policy

International Trade

The Balance of Payments, Exchange Rates, and Trade Deficits

The Economics of Developing Countries

The United States and the Global Economy

Filters