Question 1

If the 2014 poverty line is based on the amount of money an individual has earned as income, then

Accepted Answer

A)  the poverty line will be adjusted to take the value of non-cash government assistance into account. 
B)  government programs that provide non-cash assistance to the poor are not considered. 
C)  the concept of what poverty means in the 21st century should be rethought from scratch. 
D)  it will be difficult to compare poverty rates over time in a market-driven economy. 
A)  the poverty line will be adjusted to take the value of non-cash government assistance into account. 
B)  government programs that provide non-cash assistance to the poor are not considered. 
C)  the concept of what poverty means in the 21st century should be rethought from scratch. 
D)  it will be difficult to compare poverty rates over time in a market-driven economy.

Question 2

Every Lorenz curve diagram begins with a line _______.

Accepted Answer

A)  sloping down at a 45-degree angle 
B)  sloping up at a 45-degree angle 
C)  upward sloping U-shape 
D)  downward sloping hump shape 
A)  sloping down at a 45-degree angle 
B)  sloping up at a 45-degree angle 
C)  upward sloping U-shape 
D)  downward sloping hump shape

Question 3

With respect to market forces and/or labor markets that determine peoples' wages, which of the following is a true statement?

Accepted Answer

A)  labor markets consider how much a family needs for health care 
B)  market forces consider what happens to families in their business decisions 
C)  labor markets consider how much a family needs for necessities 
D)  labor markets create considerable inequalities relating to income 
A)  labor markets consider how much a family needs for health care 
B)  market forces consider what happens to families in their business decisions 
C)  labor markets consider how much a family needs for necessities 
D)  labor markets create considerable inequalities relating to income

Question 4

Briefly discuss the various aspects of the poverty trap.

Accepted Answer

A poverty trap occurs when government-su

Question 5

Suppose that new high-technology farming equipment is developed. These new machines are substitutes for low-income workers such as farm laborers, but they are complements for high- income workers such as farm technicians and farm owners. This new technology will _______ wages in for low-income workers and _______ income inequality.

Accepted Answer

A)  increase, decrease 
B)  increase, increase 
C)  decrease, decrease 
D)  decrease, increase 
A)  increase, decrease 
B)  increase, increase 
C)  decrease, decrease 
D)  decrease, increase

Question 6

Medicaid is a federal-state joint program enacted in 1965 that provides medical insurance for

Accepted Answer

A)  the near-poor and the low-income elderly. 
B)  all those below the poverty line. 
C)  low-income mothers, but not their spouses. 
D)  the disabled and all of the above. 
A)  the near-poor and the low-income elderly. 
B)  all those below the poverty line. 
C)  low-income mothers, but not their spouses. 
D)  the disabled and all of the above.

Question 7

If incomes rise for low-income workers but don't change for high-income workers,

Accepted Answer

A)  then poverty will fall and inequality will fall. 
B)  then poverty will rise and inequality will fall. 
C)  then poverty will rise and inequality will rise. 
D)  then poverty will fall and inequality will rise. 
A)  then poverty will fall and inequality will fall. 
B)  then poverty will rise and inequality will fall. 
C)  then poverty will rise and inequality will rise. 
D)  then poverty will fall and inequality will rise.

Question 8

A government program guarantees $18,000 in income, even for those who do not work at all. If the recipient earns income by working, then the $18,000 benefit is reduced by 50 cents for each
$1 earned. Will this program eliminate the poverty trap?

Accepted Answer

A)  Yes, enacting such a program will eliminate the poverty trap. 
B)  No, enacting such a program may still reduce the incentive to work. 
C)  Yes, and enacting such a program will cost the government less money. 
D)  Yes, enacting such a program will create adequate incentive to work. 
A)  Yes, enacting such a program will eliminate the poverty trap. 
B)  No, enacting such a program may still reduce the incentive to work. 
C)  Yes, and enacting such a program will cost the government less money. 
D)  Yes, enacting such a program will create adequate incentive to work.

Question 9

In the U.S., comparisons of high and low incomes raise issues of economic _______.

Accepted Answer

A)  inequality and poverty 
B)  equality and wealth distribution 
C)  wealth distribution and poverty 
D)  equality and inequality 
A)  inequality and poverty 
B)  equality and wealth distribution 
C)  wealth distribution and poverty 
D)  equality and inequality

Question 10

Lesley is a single mother with 2 children. She can earn $10 per hour and can work up to 1,800 hours per year. However, if she does not earn any income at all, she will receive government benefits totaling $18,000 per year. For every $1 of income she earns, her level of government support is reduced by $1. Lesley

Accepted Answer

A)  has no monetary incentive to work, though she may still choose to work 
B)  has a monetary incentive to work and will maximize her income if she works for 300 hours 
C)  has a monetary incentive to work and will maximize her income if she works for 600 hours 
D)  has a monetary incentive to work and will maximize her income if she works for 900 hours 
A)  has no monetary incentive to work, though she may still choose to work 
B)  has a monetary incentive to work and will maximize her income if she works for 300 hours 
C)  has a monetary incentive to work and will maximize her income if she works for 600 hours 
D)  has a monetary incentive to work and will maximize her income if she works for 900 hours

Question 11

Crystal is a single mother with 2 children. She can earn $10 per hour and can work up to 1,800 hours per year. However, if she does not earn any income at all, she will receive government benefits totaling $18,000 per year. For every $1 of income she earns, her level of government support is reduced by $1. Crystal's labor-leisure opportunity set

Accepted Answer

A)  has doubled 
B)  is smaller with the government support program 
C)  is not affected by the government support program 
D)  is larger with the government support program 
A)  has doubled 
B)  is smaller with the government support program 
C)  is not affected by the government support program 
D)  is larger with the government support program

Question 12

A Lorenz curve graphs the _______ recieved by everyone up to a certain quintile.

Accepted Answer

A)  unequal distribution over time 
B)  normative shares of income 
C)  cumulative shares of income 
D)  total share of income 
A)  unequal distribution over time 
B)  normative shares of income 
C)  cumulative shares of income 
D)  total share of income

Question 13

From the Great Depression of the 1930s until 1996, the United States' most visible antipoverty program was Aid to Families with Dependent Children, which provided cash payments to

Accepted Answer

A)  married men with families who were below the poverty line. 
B)  married women with families who were below the poverty line. 
C)  all mothers with children who were below the poverty line. 
D)  only those orphans who were living below the poverty line. 
A)  married men with families who were below the poverty line. 
B)  married women with families who were below the poverty line. 
C)  all mothers with children who were below the poverty line. 
D)  only those orphans who were living below the poverty line.

Question 14

The food stamp benefit

Accepted Answer

A)  is a state funded program started in 1984. 
B)  does not contribute to the poverty trap from an economic viewpoint. 
C)  has time limits and is not a complete disincentive to work. 
D)  is reduced by $35 for every $100 earned and a and c above. 
A)  is a state funded program started in 1984. 
B)  does not contribute to the poverty trap from an economic viewpoint. 
C)  has time limits and is not a complete disincentive to work. 
D)  is reduced by $35 for every $100 earned and a and c above.

Question 15

In the framework of a Lorenz curve, the final entry in the cumulative income column needs to be _______.

Accepted Answer

A)  total income 
B)  cumulative income 
C)  100% 
D)  45% 
A)  total income 
B)  cumulative income 
C)  100% 
D)  45%

Question 16

If the level of incomes rises for high-income workers but doesn't change for low-income workers,

Accepted Answer

A)  then poverty will not change and inequality will fall. 
B)  then poverty will not change and inequality will rise. 
C)  then poverty will rise and inequality will fall. 
D)  then poverty will fall and inequality will rise. 
A)  then poverty will not change and inequality will fall. 
B)  then poverty will not change and inequality will rise. 
C)  then poverty will rise and inequality will fall. 
D)  then poverty will fall and inequality will rise.

Question 17

One common way of measuring income inequality is to rank all households by income, from lowest to highest, and then

Accepted Answer

A)  to divide all households into quintiles. 
B)  comparing the groups. 
C)  to divide all households by size. 
D)  comparing the share of the population. 
A)  to divide all households into quintiles. 
B)  comparing the groups. 
C)  to divide all households by size. 
D)  comparing the share of the population.

Question 18

Briefly discuss what measuring inequality involves, and provide two examples for doing so.

Accepted Answer

Measuring inequality involves making com

Question 19

List three policies that can affect the level of economic inequality.

Accepted Answer

Policies that can affect the level of ec

Question 20

Suppose that the government implements a new policy that provides free skills training to all low-skilled workers, which makes them more productive and turns them into high-skilled workers. This will _______ the supply of low-skilled workers and _______ the supply of high-skilled workers.

Accepted Answer

A)  increase, decrease 
B)  increase, increase 
C)  decrease, decrease 
D)  decrease, increase 
A)  increase, decrease 
B)  increase, increase 
C)  decrease, decrease 
D)  decrease, increase

If the 2014 poverty line is based on the amount of money an individual has earned as income, then

Every Lorenz curve diagram begins with a line _______.

With respect to market forces and/or labor markets that determine peoples' wages, which of the following is a true statement?

Briefly discuss the various aspects of the poverty trap.

Medicaid is a federal-state joint program enacted in 1965 that provides medical insurance for

If incomes rise for low-income workers but don't change for high-income workers,

A government program guarantees $18,000 in income, even for those who do not work at all. If the recipient earns income by working, then the $18,000 benefit is reduced by 50 cents for each $1 earned. Will this program eliminate the poverty trap?

In the U.S., comparisons of high and low incomes raise issues of economic _______.

A Lorenz curve graphs the _______ recieved by everyone up to a certain quintile.

From the Great Depression of the 1930s until 1996, the United States' most visible antipoverty program was Aid to Families with Dependent Children, which provided cash payments to

The food stamp benefit

In the framework of a Lorenz curve, the final entry in the cumulative income column needs to be _______.

If the level of incomes rises for high-income workers but doesn't change for low-income workers,

One common way of measuring income inequality is to rank all households by income, from lowest to highest, and then

Briefly discuss what measuring inequality involves, and provide two examples for doing so.

List three policies that can affect the level of economic inequality.

Suppose that the government implements a new policy that provides free skills training to all low-skilled workers, which makes them more productive and turns them into high-skilled workers. This will _ the supply of low-skilled workers and _ the supply of high-skilled workers.

Welcome to Economics

Choice in a World of Scarcity

Demand and Supply

Labor and Financial Markets

Elasticity

Consumer Choices

Cost and Industry Structure

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Monopoly and Antitrust Policy

Environmental Protection and Negative Externalities

Positive Externalities and Public Goods

Poverty and Economic Inequality

Information, Risk, and Insurance

Financial Markets

Public Economy

International Trade

Globalization and Protectionism

Filters

Exam 15: Issues in Labor Markets: Unions, Discrimination, Immigration

If the 2014 poverty line is based on the amount of money an individual has earned as income, then

Every Lorenz curve diagram begins with a line _______.

With respect to market forces and/or labor markets that determine peoples' wages, which of the following is a true statement?

Briefly discuss the various aspects of the poverty trap.

Medicaid is a federal-state joint program enacted in 1965 that provides medical insurance for

If incomes rise for low-income workers but don't change for high-income workers,

A government program guarantees $18,000 in income, even for those who do not work at all. If the recipient earns income by working, then the $18,000 benefit is reduced by 50 cents for each $1 earned. Will this program eliminate the poverty trap?

In the U.S., comparisons of high and low incomes raise issues of economic _______.

A Lorenz curve graphs the _______ recieved by everyone up to a certain quintile.

From the Great Depression of the 1930s until 1996, the United States' most visible antipoverty program was Aid to Families with Dependent Children, which provided cash payments to

The food stamp benefit

In the framework of a Lorenz curve, the final entry in the cumulative income column needs to be _______.

If the level of incomes rises for high-income workers but doesn't change for low-income workers,

One common way of measuring income inequality is to rank all households by income, from lowest to highest, and then

Briefly discuss what measuring inequality involves, and provide two examples for doing so.

List three policies that can affect the level of economic inequality.

Suppose that the government implements a new policy that provides free skills training to all low-skilled workers, which makes them more productive and turns them into high-skilled workers. This will _______ the supply of low-skilled workers and _______ the supply of high-skilled workers.

Welcome to Economics

Choice in a World of Scarcity

Demand and Supply

Labor and Financial Markets

Elasticity

Consumer Choices

Cost and Industry Structure

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Monopoly and Antitrust Policy

Environmental Protection and Negative Externalities

Positive Externalities and Public Goods

Poverty and Economic Inequality

Information, Risk, and Insurance

Financial Markets

Public Economy

International Trade

Globalization and Protectionism

Filters

Suppose that the government implements a new policy that provides free skills training to all low-skilled workers, which makes them more productive and turns them into high-skilled workers. This will _ the supply of low-skilled workers and _ the supply of high-skilled workers.