Question 1

Which political philosophy concludes that equality of opportunities is more important than equality of outcomes?

Accepted Answer

The answer of Which political philosophy concludes that equality of...

Question 2

Since 1970 the United States' income distribution has become more equal.

Accepted Answer

A) True 
 B)False

Question 3

The poverty rate is the percentage of the population whose family income falls below an absolute level called the .

Accepted Answer

The answer of The poverty rate is the percentage of...

Question 4

Table 20-5
Distribution of Income in Umakastan  
-Refer to Table 20-5. Approximately what percentage of families in Umakastan have income levels below $74,000?

Accepted Answer

A)  27% 
B)  28% 
C)  52% 
D)  79% 
A)  27% 
B)  28% 
C)  52% 
D)  79%

Question 5

Based on U.S. income data from 2011, the top fifth of all families received

Accepted Answer

A)  about 3.8 percent more than the bottom fifth. 
B)  about 49 percent more than the bottom fifth. 
C)  approximately 5 times more income than the bottom fifth. 
D)  more than 12 times more income than the bottom fifth. 
A)  about 3.8 percent more than the bottom fifth. 
B)  about 49 percent more than the bottom fifth. 
C)  approximately 5 times more income than the bottom fifth. 
D)  more than 12 times more income than the bottom fifth.

Question 6

In 2011, the poverty rate in the United States was 15 percent. This means that 15 percent

Accepted Answer

A)  of the population had a total family income that fell below the poverty line. 
B)  of the population had a total family income that was above the poverty line. 
C)  of the population had a total family income below $10,000. 
D)  of the population had a total family income above $50,000. 
A)  of the population had a total family income that fell below the poverty line. 
B)  of the population had a total family income that was above the poverty line. 
C)  of the population had a total family income below $10,000. 
D)  of the population had a total family income above $50,000.

Question 7

Economists who study economic mobility have found that the income of a grandfather and his grandson's income are

Accepted Answer

A)  not closely related. 
B)  negatively related. 
C)  directly related. 
D)  equal. 
A)  not closely related. 
B)  negatively related. 
C)  directly related. 
D)  equal.

Question 8

Liberalism is founded on a premise that behind a "veil of ignorance,"

Accepted Answer

A)  justice cannot be agreed upon. 
B)  everyone's income should be equal. 
C)  everyone would agree to "just" rules to reallocate income. 
D)  society should maximize the sum of individual utilities. 
A)  justice cannot be agreed upon. 
B)  everyone's income should be equal. 
C)  everyone would agree to "just" rules to reallocate income. 
D)  society should maximize the sum of individual utilities.

Question 9

Table 20-1
The following table shows the distribution of income in Marysville.  
-Refer to Table 20-1. Fifty percent of all families have incomes below what level?

Accepted Answer

A)  $30,000 
B)  $60,000 
C)  $90,000 
D)  There is insufficient information to answer this question. 
A)  $30,000 
B)  $60,000 
C)  $90,000 
D)  There is insufficient information to answer this question.

Question 10

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 75-year-old individual?

Accepted Answer

A)  $10,788 
B)  $11,702 
C)  $13,596 
D)  $15,446 
A)  $10,788 
B)  $11,702 
C)  $13,596 
D)  $15,446

Question 11

Suppose the government used the following formula to compute a family's tax liability: Taxes owed = 28% of income - $8,000. How much would a family that earned $20,000 owe?

Accepted Answer

A)  -$8,000 
B)  -$2,400 
C)  $0 
D)  $2,400 
A)  -$8,000 
B)  -$2,400 
C)  $0 
D)  $2,400

Question 12

In 2011, the poverty line for a family of four in the U.S. was

Accepted Answer

A)  $60,974. 
B)  $23,021. 
C)  $20,988. 
D)  $17,642. 
A)  $60,974. 
B)  $23,021. 
C)  $20,988. 
D)  $17,642.

Question 13

Table 20-4   Source: U.S. Bureau of Census
-Refer to Table 20-4. In 2011, the bottom 60% of families have

Accepted Answer

A)  about 13% of total income in the U.S. 
B)  about 28% of total income in the U.S. 
C)  about 51% of total income in the U.S. 
D)  about 74% of total income in the U.S. 
A)  about 13% of total income in the U.S. 
B)  about 28% of total income in the U.S. 
C)  about 51% of total income in the U.S. 
D)  about 74% of total income in the U.S.

Question 14

"The government should punish crimes and enforce voluntary agreements but not redistribute income." This statement is most closely associated with which political philosophy?

Accepted Answer

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

Question 15

Which of the following statements is not correct?

Accepted Answer

A)  An advantage of the Earned Income Tax Credit (EIT
C)  is that it targets the working poor better than the minimum wage because it does not benefit teenagers from middle-class families who work summer jobs at the minimum wage. 
B)  A disadvantage of in-kind transfer programs such as food stamps is that they force recipients to purchase from a restricted set of items which may not include things that the poor need the most such as diapers or cleaning supplies. 
C)  A disadvantage of minimum wage laws is that they are expensive for state and local governments to fund. 
D)  Effective minimum wage laws create a surplus of labor. 
A)  An advantage of the Earned Income Tax Credit (EIT
C)  is that it targets the working poor better than the minimum wage because it does not benefit teenagers from middle-class families who work summer jobs at the minimum wage. 
B)  A disadvantage of in-kind transfer programs such as food stamps is that they force recipients to purchase from a restricted set of items which may not include things that the poor need the most such as diapers or cleaning supplies. 
C)  A disadvantage of minimum wage laws is that they are expensive for state and local governments to fund. 
D)  Effective minimum wage laws create a surplus of labor.

Question 16

U.S. income data over the last 75 years suggests that the distribution of income

Accepted Answer

A)  has gradually become more equal over the entire time period. 
B)  has gradually become less equal over the entire time period. 
C)  gradually became less equal until about 1970, then became more equal from 1970 to 2011. 
D)  gradually became more equal until about 1970, then became less equal from 1970 to 2011. 
A)  has gradually become more equal over the entire time period. 
B)  has gradually become less equal over the entire time period. 
C)  gradually became less equal until about 1970, then became more equal from 1970 to 2011. 
D)  gradually became more equal until about 1970, then became less equal from 1970 to 2011.

Question 17

The concept of utility is fundamental to utilitarianism and describes the

Accepted Answer

A)  optimal distribution of wealth in society. 
B)  level of satisfaction derived from a person's circumstances. 
C)  method by which society chooses to allocate resources. 
D)  method whereby wealth is stored. 
A)  optimal distribution of wealth in society. 
B)  level of satisfaction derived from a person's circumstances. 
C)  method by which society chooses to allocate resources. 
D)  method whereby wealth is stored.

Question 18

Table 20-2
Percentage of Before-Tax Income Received by Families in Hapland  
-Refer to Table 20-2. According to the table, from 1950 to 2000, the Hapland income distribution became

Accepted Answer

A)  less equal. 
B)  more equal. 
C)  more equal at the lowest level of income but less equal at highest level of income. 
D)  less equal at the lowest level of income but more equal at highest level of income. 
A)  less equal. 
B)  more equal. 
C)  more equal at the lowest level of income but less equal at highest level of income. 
D)  less equal at the lowest level of income but more equal at highest level of income.

Question 19

Data for the United States suggests that about how many millionaires inherited their fortunes?

Accepted Answer

A)  one in seven 
B)  one in five 
C)  one in three 
D)  one in two 
A)  one in seven 
B)  one in five 
C)  one in three 
D)  one in two

Question 20

Suppose the government used the following formula to compute a family's tax liability: Taxes owed = 28% of income - $8,000. How much would a family have to earn to owe $0 in taxes?

Accepted Answer

A)  $8,000 
B)  $16,283 
C)  $28,571 
D)  $30,694 
A)  $8,000 
B)  $16,283 
C)  $28,571 
D)  $30,694

Exam 20: Income Inequality and Poverty

Which political philosophy concludes that equality of opportunities is more important than equality of outcomes?

Since 1970 the United States' income distribution has become more equal.

The poverty rate is the percentage of the population whose family income falls below an absolute level called the .

Table 20-5 Distribution of Income in Umakastan -Refer to Table 20-5. Approximately what percentage of families in Umakastan have income levels below $74,000?

Based on U.S. income data from 2011, the top fifth of all families received

In 2011, the poverty rate in the United States was 15 percent. This means that 15 percent

Economists who study economic mobility have found that the income of a grandfather and his grandson's income are

Liberalism is founded on a premise that behind a "veil of ignorance,"

Table 20-1 The following table shows the distribution of income in Marysville. -Refer to Table 20-1. Fifty percent of all families have incomes below what level?

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 75-year-old individual?

Suppose the government used the following formula to compute a family's tax liability: Taxes owed = 28% of income - $8,000. How much would a family that earned $20,000 owe?

In 2011, the poverty line for a family of four in the U.S. was

Table 20-4 Source: U.S. Bureau of Census -Refer to Table 20-4. In 2011, the bottom 60% of families have

"The government should punish crimes and enforce voluntary agreements but not redistribute income." This statement is most closely associated with which political philosophy?

Which of the following statements is not correct?

U.S. income data over the last 75 years suggests that the distribution of income

The concept of utility is fundamental to utilitarianism and describes the

Table 20-2 Percentage of Before-Tax Income Received by Families in Hapland -Refer to Table 20-2. According to the table, from 1950 to 2000, the Hapland income distribution became

Data for the United States suggests that about how many millionaires inherited their fortunes?

Suppose the government used the following formula to compute a family's tax liability: Taxes owed = 28% of income - $8,000. How much would a family have to earn to owe $0 in taxes?

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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