Question 1

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

Accepted Answer

A)  Poverty statistics measure consumption rather than income,and some families may receive income that is above the official poverty line. 
B)  The high cost of living in urban 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 consumption rather than income,and some families may receive income that is above the official poverty line. 
B)  The high cost of living in urban 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 2

One cause of income inequality in the United States is:

Accepted Answer

A)  the free public school system. 
B)  differences in preferences for market work relative to nonmarket activities as well as differences in preferences for types of work. 
C)  antidiscrimination laws. 
D)  a system of taxes and government transfers that redistributes income away from the lowest earners. 
A)  the free public school system. 
B)  differences in preferences for market work relative to nonmarket activities as well as differences in preferences for types of work. 
C)  antidiscrimination laws. 
D)  a system of taxes and government transfers that redistributes income away from the lowest earners.

Question 3

Census data indicate that,as of 2011,the top fifth of all households receive about ________ times as much income as the bottom fifth.

Accepted Answer

A)  sixteen 
B)  twelve 
C)  eight 
D)  three 
A)  sixteen 
B)  twelve 
C)  eight 
D)  three

Question 4

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 5

TANF stands for Temporary Assistance for Needy Families.

Accepted Answer

A) True 
 B)False

Question 6

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 7

In 2011,the highest quintile of households in the U.S.income distribution received about:

Accepted Answer

A)  43 percent of total income. 
B)  55 percent of total income. 
C)  62 percent of total income. 
D)  51 percent of total income. 
A)  43 percent of total income. 
B)  55 percent of total income. 
C)  62 percent of total income. 
D)  51 percent of total income.

Question 8

Which of the following is an example of statistical discrimination?

Accepted Answer

A)  An employer hires only white workers even though there are otherwise identical African-American workers available at lower pay. 
B)  Women students in college business schools are overrepresented in human resource management courses and underrepresented in finance courses. 
C)  A young woman who plans to work for only five to seven years after graduating college decides that getting an advanced degree "just won't pay off." 
D)  A firm hires a man rather than a woman for a specific job because,on average,women have higher rates of absenteeism than do men. 
A)  An employer hires only white workers even though there are otherwise identical African-American workers available at lower pay. 
B)  Women students in college business schools are overrepresented in human resource management courses and underrepresented in finance courses. 
C)  A young woman who plans to work for only five to seven years after graduating college decides that getting an advanced degree "just won't pay off." 
D)  A firm hires a man rather than a woman for a specific job because,on average,women have higher rates of absenteeism than do men.

Question 9

Which of the following is a public assistance or welfare program as opposed to a social insurance program?

Accepted Answer

A)  Supplemental Security Income (SSI). 
B)  Unemployment compensation. 
C)  Medicare. 
D)  Social Security. 
A)  Supplemental Security Income (SSI). 
B)  Unemployment compensation. 
C)  Medicare. 
D)  Social Security.

Question 10

In 2011,a household with an annual income of $23,000 would find itself in the:

Accepted Answer

A)  highest quintile of the household income distribution. 
B)  lowest quintile of the household income distribution. 
C)  second lowest quintile of the household income distribution. 
D)  second highest quintile of the household income distribution. 
A)  highest quintile of the household income distribution. 
B)  lowest quintile of the household income distribution. 
C)  second lowest quintile of the household income distribution. 
D)  second highest quintile of the household income distribution.

Question 11

All but which one of the following are cash transfer programs?

Accepted Answer

A)  TANF. 
B)  Supplemental Security Income (SSI). 
C)  Low-rent public housing. 
D)  Social Security. 
A)  TANF. 
B)  Supplemental Security Income (SSI). 
C)  Low-rent public housing. 
D)  Social Security.

Question 12

Which of the following is a noncash transfer?

Accepted Answer

A)  A payment to a divorced mother under TANF. 
B)  SNAP (food stamps). 
C)  A social security payment to a retiree. 
D)  Unemployment compensation benefits. 
A)  A payment to a divorced mother under TANF. 
B)  SNAP (food stamps). 
C)  A social security payment to a retiree. 
D)  Unemployment compensation benefits.

Question 13

In the taste-for-discrimination model:

Accepted Answer

A)  discriminatory employers behave as if employing nonpreferred-race workers adds to costs. 
B)  individual workers are judged by the characteristics of the groups to which they belong. 
C)  prejudiced white employers will never hire African-American workers. 
D)  women and minorities are confined to a limited number of occupations. 
A)  discriminatory employers behave as if employing nonpreferred-race workers adds to costs. 
B)  individual workers are judged by the characteristics of the groups to which they belong. 
C)  prejudiced white employers will never hire African-American workers. 
D)  women and minorities are confined to a limited number of occupations.

Question 14

The crowding of women and minorities into a restricted number of occupations:

Accepted Answer

A)  has no impact on the size of the domestic output or its distribution in the long run. 
B)  will increase the size of the domestic output and make its distribution more equal. 
C)  will decrease the size of the domestic output and make its distribution less equal. 
D)  will increase the size of the domestic output but make its distribution less equal. 
A)  has no impact on the size of the domestic output or its distribution in the long run. 
B)  will increase the size of the domestic output and make its distribution more equal. 
C)  will decrease the size of the domestic output and make its distribution less equal. 
D)  will increase the size of the domestic output but make its distribution less equal.

Question 15

Which of the following countries has the highest Gini ratio,as of 2011?

Accepted Answer

A)  Italy. 
B)  United States. 
C)  South Africa. 
D)  Mexico. 
A)  Italy. 
B)  United States. 
C)  South Africa. 
D)  Mexico.

Question 16

Income:

Accepted Answer

A)  is a stock concept. 
B)  consists of accumulated assets. 
C)  is a flow concept. 
D)  consists of wages only. 
A)  is a stock concept. 
B)  consists of accumulated assets. 
C)  is a flow concept. 
D)  consists of wages only.

Question 17

African-American worker Jackson earns $30,000 per year;white worker Johnson earns $40,000 per year.On the basis of this information we can conclude that:

Accepted Answer

A)  it is not clear whether discrimination is present in this situation. 
B)  there are no discriminatory forces at work in the labor market. 
C)  Jackson is being discriminated against,but the dollar amount is unclear. 
D)  Jackson is being discriminated against in the amount of $10,000 per year. 
A)  it is not clear whether discrimination is present in this situation. 
B)  there are no discriminatory forces at work in the labor market. 
C)  Jackson is being discriminated against,but the dollar amount is unclear. 
D)  Jackson is being discriminated against in the amount of $10,000 per year.

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

One cause of income inequality in the United States is:

Census data indicate that,as of 2011,the top fifth of all households receive about ________ times as much income as the bottom fifth.

Which of the following would likely reduce income inequality?

TANF stands for Temporary Assistance for Needy Families.

The Lorenz curve portrays:

In 2011,the highest quintile of households in the U.S.income distribution received about:

Which of the following is an example of statistical discrimination?

Which of the following is a public assistance or welfare program as opposed to a social insurance program?

In 2011,a household with an annual income of $23,000 would find itself in the:

All but which one of the following are cash transfer programs?

Which of the following is a noncash transfer?

In the taste-for-discrimination model:

The crowding of women and minorities into a restricted number of occupations:

Which of the following countries has the highest Gini ratio,as of 2011?

Income:

African-American worker Jackson earns $30,000 per year;white worker Johnson earns $40,000 per year.On the basis of this information we can conclude that:

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

One cause of income inequality in the United States is:

Census data indicate that,as of 2011,the top fifth of all households receive about ________ times as much income as the bottom fifth.

Which of the following would likely reduce income inequality?

TANF stands for Temporary Assistance for Needy Families.

The Lorenz curve portrays:

In 2011,the highest quintile of households in the U.S.income distribution received about:

Which of the following is an example of statistical discrimination?

Which of the following is a public assistance or welfare program as opposed to a social insurance program?

In 2011,a household with an annual income of $23,000 would find itself in the:

All but which one of the following are cash transfer programs?

Which of the following is a noncash transfer?

In the taste-for-discrimination model:

The crowding of women and minorities into a restricted number of occupations:

Which of the following countries has the highest Gini ratio,as of 2011?

Income:

African-American worker Jackson earns $30,000 per year;white worker Johnson earns $40,000 per year.On the basis of this information we can conclude that:

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