Question 1

The group comprising the highest percentage of the poor is

Accepted Answer

A)  the disabled. 
B)  elderly. 
C)  male heads of households. 
D)  children. 
A)  the disabled. 
B)  elderly. 
C)  male heads of households. 
D)  children. D

Question 2

Suppose Lefty has utility characterized by the equation: Ul = 3I1/2,where I is income.In addition,Righty has utility characterized by the equation: Ur = 4I1/2,where I is income.
(A)If each had $100,000,which one would have the higher level of utility?
(B)Illustrate Lefty's and Right's utility functions.
(C)What equal amount of income could we give to both that would also give them the same level of utility?

Accepted Answer

(A)Lefty's utility would be 300.Righty's would be 400. 
(B)   
(C)The only level that would work for both is 0.

Question 3

Ethics play a key role in income redistribution.

Accepted Answer

A)  True 
B)  False 
C)  Uncertain 
A)  True 
B)  False 
C)  Uncertain A

Question 4

Social welfare functions require that a society has at least three people living in it.

Accepted Answer

A)  True 
B)  False 
C)  Uncertain 
A)  True 
B)  False 
C)  Uncertain

Question 5

An imaginary situation in which people have no knowledge of what their place in society is to be is?

Accepted Answer

A)  first position 
B)  start position 
C)  original position 
D)  pole position 
A)  first position 
B)  start position 
C)  original position 
D)  pole position

Question 6

Taking into account the utility of all persons in society is referred to as

Accepted Answer

A)  an utilitarian social welfare function. 
B)  equalizing social welfare function. 
C)  an in-kind transfer. 
D)  a Pareto equilibrium. 
A)  an utilitarian social welfare function. 
B)  equalizing social welfare function. 
C)  an in-kind transfer. 
D)  a Pareto equilibrium.

Question 7

Suppose that in a certain society $10,000 is the official cut-off of income for the poor.This means that any person making less than $10,000 is considered poor.Suppose further that there are three people in this society: Randy,Marlon,and Tito,with incomes of $9,900,$9,900,and $5,000,respectively.
A)How many people are in poverty?
B)How much income would it take,on average,to lift every poor person out of poverty?
C)What if some policy caused $200 to be taken from Tito and given to Randy.How many people are in poverty now? How much income would it take,on average,to lift every poor person out of poverty?

Accepted Answer

A)Three people are in poverty.

Question 8

Giving in-kind transfers will ensure that people get proper amounts of nutrition.

Accepted Answer

A)  True 
B)  False 
C)  Uncertain 
A)  True 
B)  False 
C)  Uncertain

Question 9

The poverty rate in the United States has __________ over the last 30 years.

Accepted Answer

A)  remained the same 
B)  increased 
C)  decreased 
D)  not been accurately measured 
A)  remained the same 
B)  increased 
C)  decreased 
D)  not been accurately measured

Question 10

State whether you agree with the following statement and why: "It doesn't make sense to give poor people cash since they'll spend it on cigarettes and lottery tickets instead of needed items."

Accepted Answer

It is difficult to predict what any indi

Question 11

The poverty rate in the United States has decreased by more than 50% over the last 40 years.

Accepted Answer

A)  True 
B)  False 
C)  Uncertain 
A)  True 
B)  False 
C)  Uncertain

Question 12

An additive social welfare function would

Accepted Answer

A)  add the incomes of the lowest ten percent of income earners. 
B)  subtract out the utility functions of all people who are unemployed. 
C)  sum all individual utilities. 
D)  maximize the utility of the person with the minimum utility. 
A)  add the incomes of the lowest ten percent of income earners. 
B)  subtract out the utility functions of all people who are unemployed. 
C)  sum all individual utilities. 
D)  maximize the utility of the person with the minimum utility.

Question 13

Ignoring taxes when making redistributive decisions has no impact on equity.

Accepted Answer

A)  True 
B)  False 
C)  Uncertain 
A)  True 
B)  False 
C)  Uncertain

Question 14

The _________ of whites in poverty in the U.S.is greater than that of blacks and Hispanics.

Accepted Answer

A)  percentage 
B)  total number 
C)  fraction 
D)  none of these answer options are correct. 
A)  percentage 
B)  total number 
C)  fraction 
D)  none of these answer options are correct.

Question 15

Giving poor people food instead of cash for food

Accepted Answer

A)  is an in-kind transfer. 
B)  will benefit some more than others,depending on their utility function. 
C)  is politically popular. 
D)  all of these answer options are correct. 
A)  is an in-kind transfer. 
B)  will benefit some more than others,depending on their utility function. 
C)  is politically popular. 
D)  all of these answer options are correct.

Question 16

The United States' official measure of poverty is measured by

Accepted Answer

A)  only cash income. 
B)  cash income and capital gains. 
C)  only in-kind income. 
D)  the imputed value of rent payments. 
A)  only cash income. 
B)  cash income and capital gains. 
C)  only in-kind income. 
D)  the imputed value of rent payments.

Question 17

Poverty is relative and not absolute.

Accepted Answer

A)  True 
B)  False 
C)  Uncertain 
A)  True 
B)  False 
C)  Uncertain

Question 18

For the additive social welfare function to yield results,we must assume

Accepted Answer

A)  individuals have identical utility functions. 
B)  individuals' utility functions have diminishing marginal utility of income. 
C)  the total amount of income available is fixed. 
D)  all of these answer options are correct. 
A)  individuals have identical utility functions. 
B)  individuals' utility functions have diminishing marginal utility of income. 
C)  the total amount of income available is fixed. 
D)  all of these answer options are correct.

Question 19

Changing the price of good Y will

Accepted Answer

A)  only affect the demand for that good. 
B)  have effects across some markets. 
C)  keep prices down in all markets. 
D)  have no effect. 
A)  only affect the demand for that good. 
B)  have effects across some markets. 
C)  keep prices down in all markets. 
D)  have no effect.

Question 20

Income is the only factor used to measure a person's wealth.

Accepted Answer

A)  True 
B)  False 
C)  Uncertain 
A)  True 
B)  False 
C)  Uncertain

The group comprising the highest percentage of the poor is

Ethics play a key role in income redistribution.

Social welfare functions require that a society has at least three people living in it.

An imaginary situation in which people have no knowledge of what their place in society is to be is?

Taking into account the utility of all persons in society is referred to as

Giving in-kind transfers will ensure that people get proper amounts of nutrition.

The poverty rate in the United States has __________ over the last 30 years.

State whether you agree with the following statement and why: "It doesn't make sense to give poor people cash since they'll spend it on cigarettes and lottery tickets instead of needed items."

The poverty rate in the United States has decreased by more than 50% over the last 40 years.

An additive social welfare function would

Ignoring taxes when making redistributive decisions has no impact on equity.

The _________ of whites in poverty in the U.S.is greater than that of blacks and Hispanics.

Giving poor people food instead of cash for food

The United States' official measure of poverty is measured by

Poverty is relative and not absolute.

For the additive social welfare function to yield results,we must assume

Changing the price of good Y will

Income is the only factor used to measure a person's wealth.

Introduction

Tools of Positive Analysis

Tools of Normative Analysis

Public Goods

Externalities

Political Economy

Education

Cost-Benefit Analysis

The Health Care Market

Government and the Market for Health Care

Social Security

Expenditure Programs for the Poor

Taxation and Income Distribution

Taxation and Efficiency

Efficient and Equitable Taxation

The Personal Income Tax

Personal Taxation and Behavior

The Corporation Tax

Deficit Finance

Fundamental Tax Reform: Taxes on Consumption and Wealth

Public Finance in a Federal System

Filters

Exam 12: Income Redistribution: Conceptual Issues

The group comprising the highest percentage of the poor is

Ethics play a key role in income redistribution.

Social welfare functions require that a society has at least three people living in it.

An imaginary situation in which people have no knowledge of what their place in society is to be is?

Taking into account the utility of all persons in society is referred to as

Giving in-kind transfers will ensure that people get proper amounts of nutrition.

The poverty rate in the United States has __________ over the last 30 years.

State whether you agree with the following statement and why: "It doesn't make sense to give poor people cash since they'll spend it on cigarettes and lottery tickets instead of needed items."

The poverty rate in the United States has decreased by more than 50% over the last 40 years.

An additive social welfare function would

Ignoring taxes when making redistributive decisions has no impact on equity.

The _________ of whites in poverty in the U.S.is greater than that of blacks and Hispanics.

Giving poor people food instead of cash for food

The United States' official measure of poverty is measured by

Poverty is relative and not absolute.

For the additive social welfare function to yield results,we must assume

Changing the price of good Y will

Income is the only factor used to measure a person's wealth.

Introduction

Tools of Positive Analysis

Tools of Normative Analysis

Public Goods

Externalities

Political Economy

Education

Cost-Benefit Analysis

The Health Care Market

Government and the Market for Health Care

Social Security

Expenditure Programs for the Poor

Taxation and Income Distribution

Taxation and Efficiency

Efficient and Equitable Taxation

The Personal Income Tax

Personal Taxation and Behavior

The Corporation Tax

Deficit Finance

Fundamental Tax Reform: Taxes on Consumption and Wealth

Public Finance in a Federal System

Filters