Question 1

If two individuals have identical schooling, their incomes will be equal.

Accepted Answer

A) True 
 B)False  False

Question 2

Who would receive payments from the government under a negative income tax system?

Accepted Answer

A) everyone 
B) only people with no earnings 
C) only people with incomes below a certain level 
D) only people with incomes above a certain level 
A) everyone 
B) only people with no earnings 
C) only people with incomes below a certain level 
D) only people with incomes above a certain level C

Question 3

How do income redistribution programs affect equality and efficiency?

Accepted Answer

Programs intended to improve equality by redistributing income from the richer to the poorer may reduce efficiency in several ways.They may discourage the recipients from working to enhance their own incomes, and they may simultaneously discourage the richer people from working, since their after-tax incomes will be reduced.

Question 4

Aid to families with dependent children was

Accepted Answer

A) a close-to-perfect welfare or public assistance program. 
B) criticized because it provided little incentive for recipients to get jobs. 
C) contributing to efficient production of goods. 
D) superior to a negative income tax for work incentives. 
A) a close-to-perfect welfare or public assistance program. 
B) criticized because it provided little incentive for recipients to get jobs. 
C) contributing to efficient production of goods. 
D) superior to a negative income tax for work incentives.

Question 5

The concept of poverty is culturally determined, and hence people are defined as "poor" in relation to others.

Accepted Answer

A) True 
 B)False

Question 6

What is the difference between the absolute and relative concepts of poverty? What are the major problems in measuring poverty with them?

Accepted Answer

The absolute concept of poverty is the m

Question 7

The official dividing line between the poor and nonpoor is called the

Accepted Answer

A) life threshold. 
B) life edge. 
C) poverty line. 
D) beginning line. 
A) life threshold. 
B) life edge. 
C) poverty line. 
D) beginning line.

Question 8

In their 1994 book, The Bell Curve, Murray and Herrnstein presented evidence that IQ is an important determinant of economic success.

Accepted Answer

A) True 
 B)False

Question 9

Inheritance taxes tend to increase income inequality in the long run.

Accepted Answer

A) True 
 B)False

Question 10

Schooling and other types of training

Accepted Answer

A) are regarded as investment in human capital. 
B) are an important cause of income differentials. 
C) involve workers' sacrificing current income in order to enjoy higher future income. 
D) All of the above are correct. 
A) are regarded as investment in human capital. 
B) are an important cause of income differentials. 
C) involve workers' sacrificing current income in order to enjoy higher future income. 
D) All of the above are correct.

Question 11

What has been the trend in eliminating poverty since 1960?

Accepted Answer

Progress was made through the 1960s, par

Question 12

Affirmative action laws require employers to hire specified numbers of minorities.

Accepted Answer

A) True 
 B)False

Question 13

There are several reasons why incomes are unequal, including differences in luck, experience, and schooling.

Accepted Answer

A) True 
 B)False

Question 14

The poor are those who fall too far behind the average income.This refers to the ____ definition of poverty.

Accepted Answer

A) marginal 
B) absolute 
C) relative 
D) threshold 
A) marginal 
B) absolute 
C) relative 
D) threshold

Question 15

If incomes were equally distributed in the United States, each fifth of the population would receive ____ percent of the income.

Accepted Answer

A) 5 
B) 10 
C) 15 
D) 20 
A) 5 
B) 10 
C) 15 
D) 20

Question 16

Programs that reduce the incentive to work make income redistribution inefficient.

Accepted Answer

A) True 
 B)False

Question 17

Two policies to combat discrimination are affirmative action and right-to-work laws.

Accepted Answer

A) True 
 B)False

Question 18

In 2012, what percentage of total income in the U.S.was earned by the richest fifth of all U.S.households?

Accepted Answer

A) 20% 
B) 30% 
C) 40% 
D) 50% 
A) 20% 
B) 30% 
C) 40% 
D) 50%

Question 19

Many economists believe that

Accepted Answer

A) once a negative income tax system was in place, the United States could increase economic equality indefinitely without reducing economic efficiency. 
B) a negative income tax would be less efficient than the current welfare system. 
C) replacing the current welfare system with a negative income tax would increase both economic efficiency and economic equality. 
D) None of the above is correct. 
A) once a negative income tax system was in place, the United States could increase economic equality indefinitely without reducing economic efficiency. 
B) a negative income tax would be less efficient than the current welfare system. 
C) replacing the current welfare system with a negative income tax would increase both economic efficiency and economic equality. 
D) None of the above is correct.

Question 20

A tax is more likely to promote economic equality if it is

Accepted Answer

A) regressive. 
B) proportional. 
C) indirect. 
D) progressive. 
A) regressive. 
B) proportional. 
C) indirect. 
D) progressive.

Exam 20: Poverty Inequality and Discrimination

If two individuals have identical schooling, their incomes will be equal.

Who would receive payments from the government under a negative income tax system?

How do income redistribution programs affect equality and efficiency?

Aid to families with dependent children was

The concept of poverty is culturally determined, and hence people are defined as "poor" in relation to others.

What is the difference between the absolute and relative concepts of poverty? What are the major problems in measuring poverty with them?

The official dividing line between the poor and nonpoor is called the

In their 1994 book, The Bell Curve, Murray and Herrnstein presented evidence that IQ is an important determinant of economic success.

Inheritance taxes tend to increase income inequality in the long run.

Schooling and other types of training

What has been the trend in eliminating poverty since 1960?

Affirmative action laws require employers to hire specified numbers of minorities.

There are several reasons why incomes are unequal, including differences in luck, experience, and schooling.

The poor are those who fall too far behind the average income.This refers to the ____ definition of poverty.

If incomes were equally distributed in the United States, each fifth of the population would receive ____ percent of the income.

Programs that reduce the incentive to work make income redistribution inefficient.

Two policies to combat discrimination are affirmative action and right-to-work laws.

In 2012, what percentage of total income in the U.S.was earned by the richest fifth of all U.S.households?

Many economists believe that

A tax is more likely to promote economic equality if it is

What Is Economics

The Economy Myth and Reality

The Fundamental Economic Problem Scarcity and Choice

Supply and Demand an Initial Look

Consumer Choice Individual and Market Demand

Demand and Elasticity

Production Inputs and Cost Building Blocks for Supply Analysis

Output Price and Profit the Importance of Marginal Analysis

Securities Business Finance and the Economy the Tail That Wags the Dog

The Firm and the Industry Under Perfect Competition

Monopoly

Between Competition and Monopoly

Limiting Market Power Regulation and Antitrust

The Case for Free Markets the Price System

The Shortcomings of Free Markets

Externalities the Environment and Natural Resources

Taxation and Resource Allocation

Pricing the Factors of Production

Labor and Entrepreneurship the Human Inputs

Is Us Economic Leadership Threatened

International Trade and Comparative Advantage

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