Question 1

Which political philosophy argues that the government should choose policies deemed just, as evaluated by an impartial observer?

Accepted Answer

The answer of Which political philosophy argues that the government...

Question 2

Which of the following statements is characteristic of utilitarianism?

Accepted Answer

A)  An extra dollar of income provides higher marginal utility to a poor person than to a rich person. 
B)  Social policies should be created behind a "veil of ignorance." 
C)  Society should strive to maximize the utility of its wealthiest member. 
D)  Equality of opportunity is more important than equality of incomes. 
A)  An extra dollar of income provides higher marginal utility to a poor person than to a rich person. 
B)  Social policies should be created behind a "veil of ignorance." 
C)  Society should strive to maximize the utility of its wealthiest member. 
D)  Equality of opportunity is more important than equality of incomes.

Question 3

Table 20-14
Income Inequality in the United States
The values in the table reflect the percentages of pre-tax-and transfer income.   Source: US Census Bureau
-Refer to Table 20-14. In percentage terms, how much less income did the bottom 40% of families have in 2010 than in 1980?

Accepted Answer

The answer of Table 20-14
Income Inequality in the United States
The...

Question 4

The normal life cycle pattern of income

Accepted Answer

A)  contributes to more inequality in the distribution of annual income and to more inequality in living standards. 
B)  contributes to more inequality in the distribution of annual income, but it does not necessarily contribute to more inequality in living standards. 
C)  contributes to less inequality in the distribution of annual income and to less inequality in living standards. 
D)  has no effect on either the distribution of annual income or on living standards. 
A)  contributes to more inequality in the distribution of annual income and to more inequality in living standards. 
B)  contributes to more inequality in the distribution of annual income, but it does not necessarily contribute to more inequality in living standards. 
C)  contributes to less inequality in the distribution of annual income and to less inequality in living standards. 
D)  has no effect on either the distribution of annual income or on living standards.

Question 5

Table 20-11
Poverty Thresholds in 2011, by Size of Family and Number of Related Children Under 18 Years [Dollars]   Source: U. S. Bureau of the Census, Current Population Survey.
-Refer to Table 20-11. What is the poverty line for a family of six with three children?

Accepted Answer

A)  $29,494 
B)  $31,005 
C)  $32,181 
D)  $26,844 
A)  $29,494 
B)  $31,005 
C)  $32,181 
D)  $26,844

Question 6

About four out of five millionaires in the United States earned their money rather than inherited it.

Accepted Answer

A) True 
 B)False

Question 7

If income were equally distributed among households,

Accepted Answer

A)  each household's relative share of income would increase. 
B)  each household's relative share of income would decrease. 
C)  the top fifth of households would have 50 percent of the income. 
D)  50 percent of the households would receive exactly 50 percent of the income. 
A)  each household's relative share of income would increase. 
B)  each household's relative share of income would decrease. 
C)  the top fifth of households would have 50 percent of the income. 
D)  50 percent of the households would receive exactly 50 percent of the income.

Question 8

Temporary Assistance for Needy Families (TANF) and Supplemental Security Income (SSI) are examples of .

Accepted Answer

The answer of Temporary Assistance for Needy Families (TANF) and...

Question 9

Approximately what fraction of total income in the US economy comes from labor earnings?

Accepted Answer

The answer of Approximately what fraction of total income in...

Question 10

Among all countries in the world, the United States has the most income inequality.

Accepted Answer

A) True 
 B)False

Question 11

Which political philosophy focuses on the process of determining the distribution of income rather than on the outcome?

Accepted Answer

A)  utilitarianism 
B)  liberalism 
C)  libertarianism 
D)  welfarism 
A)  utilitarianism 
B)  liberalism 
C)  libertarianism 
D)  welfarism

Question 12

About half of black and Hispanic children in female-headed households live in poverty.

Accepted Answer

A) True 
 B)False

Question 13

In-kind transfers are transfers to the poor

Accepted Answer

A)  in the form of goods and services rather than cash. 
B)  in the form of goods, services, and cash. 
C)  from private charitable organizations only. 
D)  from the federal government only. 
A)  in the form of goods and services rather than cash. 
B)  in the form of goods, services, and cash. 
C)  from private charitable organizations only. 
D)  from the federal government only.

Question 14

Aniella believes that the demand for unskilled labor is relatively inelastic. Carmella believes that the demand for unskilled labor is relatively elastic. Which is an advocate of minimum-wage laws?

Accepted Answer

The answer of Aniella believes that the demand for unskilled...

Question 15

The study by economists Cox and Alm found that the 2006 pre-tax income of the richest fifth of U.S. households is

Accepted Answer

A)  5 times the pre-tax income of the poorest fifth. 
B)  10 times the pre-tax income of the poorest fifth. 
C)  15 times the pre-tax income of the poorest fifth. 
D)  20 times the pre-tax income of the poorest fifth. 
A)  5 times the pre-tax income of the poorest fifth. 
B)  10 times the pre-tax income of the poorest fifth. 
C)  15 times the pre-tax income of the poorest fifth. 
D)  20 times the pre-tax income of the poorest fifth.

Question 16

When the government enacts policies to make the distribution of income more equitable, it distorts incentives, alters behavior, and makes the allocation of resources less efficient.

Accepted Answer

A) True 
 B)False

Question 17

For a typical worker, her income will be lower when she is younger, peak around age 50, and decrease drastically when she retires. This pattern of changes in income for a typical worker is called

Accepted Answer

A)  the life cycle. 
B)  permanent income. 
C)  transitory income. 
D)  in-kind transfers. 
A)  the life cycle. 
B)  permanent income. 
C)  transitory income. 
D)  in-kind transfers.

Question 18

Which of the following statements is correct?

Accepted Answer

A)  Followers of the liberalism political philosophy believe that society should maximize the total of individual utilities. 
B)  The poverty line is adjusted for regional differences in the costs of raising children. 
C)  One advantage to the Earned Income Tax Credit (EIT
C)  is that it benefits the working poor. 
D)  Libertarians pursue policies to redistribute income from the rich to the poor. 
A)  Followers of the liberalism political philosophy believe that society should maximize the total of individual utilities. 
B)  The poverty line is adjusted for regional differences in the costs of raising children. 
C)  One advantage to the Earned Income Tax Credit (EIT
C)  is that it benefits the working poor. 
D)  Libertarians pursue policies to redistribute income from the rich to the poor.

Question 19

Of the following groups, which group is most likely to live in poverty - children, elderly, married-couple families, female household with no spouse present?

Accepted Answer

female hou

Question 20

The statement that "measures of the distribution of income are based on money income" relates to which problem in measuring inequality?

Accepted Answer

A)  in-kind transfers 
B)  economic life cycle 
C)  transitory versus permanent income 
D)  economic mobility 
A)  in-kind transfers 
B)  economic life cycle 
C)  transitory versus permanent income 
D)  economic mobility

Exam 20: Income Inequality and Poverty

Which political philosophy argues that the government should choose policies deemed just, as evaluated by an impartial observer?

Which of the following statements is characteristic of utilitarianism?

Table 20-14 Income Inequality in the United States The values in the table reflect the percentages of pre-tax-and transfer income. Source: US Census Bureau -Refer to Table 20-14. In percentage terms, how much less income did the bottom 40% of families have in 2010 than in 1980?

The normal life cycle pattern of income

Table 20-11 Poverty Thresholds in 2011, by Size of Family and Number of Related Children Under 18 Years [Dollars] Source: U. S. Bureau of the Census, Current Population Survey. -Refer to Table 20-11. What is the poverty line for a family of six with three children?

About four out of five millionaires in the United States earned their money rather than inherited it.

If income were equally distributed among households,

Temporary Assistance for Needy Families (TANF) and Supplemental Security Income (SSI) are examples of .

Approximately what fraction of total income in the US economy comes from labor earnings?

Among all countries in the world, the United States has the most income inequality.

Which political philosophy focuses on the process of determining the distribution of income rather than on the outcome?

About half of black and Hispanic children in female-headed households live in poverty.

In-kind transfers are transfers to the poor

Aniella believes that the demand for unskilled labor is relatively inelastic. Carmella believes that the demand for unskilled labor is relatively elastic. Which is an advocate of minimum-wage laws?

The study by economists Cox and Alm found that the 2006 pre-tax income of the richest fifth of U.S. households is

When the government enacts policies to make the distribution of income more equitable, it distorts incentives, alters behavior, and makes the allocation of resources less efficient.

For a typical worker, her income will be lower when she is younger, peak around age 50, and decrease drastically when she retires. This pattern of changes in income for a typical worker is called

Which of the following statements is correct?

Of the following groups, which group is most likely to live in poverty - children, elderly, married-couple families, female household with no spouse present?

The statement that "measures of the distribution of income are based on money income" relates to which problem in measuring inequality?

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Elasticity and Its Application

Supply, Demand, and Government Policies

Consumers, Producers, and the Efficiency of Markets

Application: the Costs of Taxation

Application: International Trade

Externalities

Public Goods and Common Resources

The Design of the Tax System

The Costs of Production

Firms in Competitive Markets

Monopoly

Monopolistic Competition

Oligopoly

The Markets for the Factors of Production

Earnings and Discrimination

The Theory of Consumer Choice

Frontiers of Microeconomics

Measuring a Nations Income

Measuring the Cost of Living

Production and Growth

Saving, Investment, and the Financial System

The Basic Tools of Finance

Unemployment

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short-Run Trade-Off Between Inflation and Unemployment

Six Debates Over Macroeconomic Policy

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