Question 1

How would you feel about a policy that would raise someone else's income without lowering yours? Are you any worse off?

Accepted Answer

If total income is fixed,it would be imp

Question 2

Generally,official poverty measures ignore

Accepted Answer

A)  the impact of taxes. 
B)  the value of in-kind transfers. 
C)  the value of medical expenses that are paid by the government. 
D)  all of these answer options are correct. 
A)  the impact of taxes. 
B)  the value of in-kind transfers. 
C)  the value of medical expenses that are paid by the government. 
D)  all of these answer options are correct.

Question 3

A notion that supports the idea that some items should be distributed equally to all is known as

Accepted Answer

A)  Pareto efficiency. 
B)  the Hoover Principle. 
C)  poverty gap closing. 
D)  commodity egalitarianism. 
A)  Pareto efficiency. 
B)  the Hoover Principle. 
C)  poverty gap closing. 
D)  commodity egalitarianism.

Question 4

In a public goods context,it is difficult to measure its impact on real income because

Accepted Answer

A)  public goods are generally free to the public. 
B)  they make up a small percentage of total GDP. 
C)  people do not reveal how they value public goods. 
D)  inflation decreases the value of the good. 
A)  public goods are generally free to the public. 
B)  they make up a small percentage of total GDP. 
C)  people do not reveal how they value public goods. 
D)  inflation decreases the value of the good.

Question 5

The middle class in the United States has _______ since the late 1960s.

Accepted Answer

A)  stayed the same 
B)  decreased 
C)  increased a great deal but then declined 
D)  increased slightly 
A)  stayed the same 
B)  decreased 
C)  increased a great deal but then declined 
D)  increased slightly

Question 6

The poverty line in the United States

Accepted Answer

A)  last changed in 1980. 
B)  never changes. 
C)  changes with the level of inflation and family size. 
D)  changes with the minimum wage. 
A)  last changed in 1980. 
B)  never changes. 
C)  changes with the level of inflation and family size. 
D)  changes with the minimum wage.

Question 7

Maximizing the utility of the person with the minimum utility is known as

Accepted Answer

A)  the minimax criterion. 
B)  the maximin criterion. 
C)  the Hicks-Kaldor criterion. 
D)  the Corlett-Hague Rule. 
A)  the minimax criterion. 
B)  the maximin criterion. 
C)  the Hicks-Kaldor criterion. 
D)  the Corlett-Hague Rule.

Question 8

Suppose there are only two people,Mr.Mullinax and Ms.Fleming,who must split a fixed income of $500.For Mr.Mullinax,the marginal utility of income is MUm = 600 - 2Im,while for Ms.Fleming,marginal utility is MUf = 600 - 3If,where Im and If are the amounts of income to Mr.Mullinax and Ms.Fleming,respectively.
(A)What is the optimal distribution of income if the social welfare function is additive?
(B)What is the optimal distribution if society values only the utility of Ms.Fleming? What if the reverse is true? Comment on your answer.
(C)Finally,comment on how your answers change if the marginal utility of income for both Mr.Mullinax and Ms.Fleming is constant such that Mum = 250 = MUf.(This one is subtle.)

Accepted Answer

The setup should be I_m + I_f = 500 and 600

Question 9

An in-kind transfer is a

Accepted Answer

A)  transfer made by people to be kind to others. 
B)  transfer of wealth. 
C)  transfer of goods and services instead of cash. 
D)  system of clearing checks by local banks. 
A)  transfer made by people to be kind to others. 
B)  transfer of wealth. 
C)  transfer of goods and services instead of cash. 
D)  system of clearing checks by local banks.

Question 10

Refer to the table below.Relative to their starting position,people in the fourth-fifth of the income distribution have seen the greatest decrease in their share of income.

Accepted Answer

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

Question 11

If the least wealthy person in a society has millions of dollars,should we still consider that person poor?

Accepted Answer

If we are using a relative measure of po

Question 12

How would poverty be affected in the United States if the measure were changed to a more comprehensive one that included the value of in-kind transfers,medical services,and taxes?

Accepted Answer

Estimates have shown that poverty measur

Question 13

Measures of income before intervention are calculated on an annual rather than a lifetime basis.

Accepted Answer

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

Question 14

A redistribution is Pareto efficient if no one is made worse off afterward.

Accepted Answer

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

How would you feel about a policy that would raise someone else's income without lowering yours? Are you any worse off?

Generally,official poverty measures ignore

A notion that supports the idea that some items should be distributed equally to all is known as

In a public goods context,it is difficult to measure its impact on real income because

The middle class in the United States has _______ since the late 1960s.

The poverty line in the United States

Maximizing the utility of the person with the minimum utility is known as

An in-kind transfer is a

Refer to the table below.Relative to their starting position,people in the fourth-fifth of the income distribution have seen the greatest decrease in their share of income.

If the least wealthy person in a society has millions of dollars,should we still consider that person poor?

How would poverty be affected in the United States if the measure were changed to a more comprehensive one that included the value of in-kind transfers,medical services,and taxes?

Measures of income before intervention are calculated on an annual rather than a lifetime basis.

A redistribution is Pareto efficient if no one is made worse off afterward.

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

How would you feel about a policy that would raise someone else's income without lowering yours? Are you any worse off?

Generally,official poverty measures ignore

A notion that supports the idea that some items should be distributed equally to all is known as

In a public goods context,it is difficult to measure its impact on real income because

The middle class in the United States has _______ since the late 1960s.

The poverty line in the United States

Maximizing the utility of the person with the minimum utility is known as

An in-kind transfer is a

Refer to the table below.Relative to their starting position,people in the fourth-fifth of the income distribution have seen the greatest decrease in their share of income.

If the least wealthy person in a society has millions of dollars,should we still consider that person poor?

How would poverty be affected in the United States if the measure were changed to a more comprehensive one that included the value of in-kind transfers,medical services,and taxes?

Measures of income before intervention are calculated on an annual rather than a lifetime basis.

A redistribution is Pareto efficient if no one is made worse off afterward.

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