Question 1

Nondiscriminatory firms hiring in the market place have a cost advantage.

Accepted Answer

A) True 
 B)False  True

Question 2

Tax loopholes increase the progressivity of the federal income tax.

Accepted Answer

A) True 
 B)False  False

Question 3

The basic idea behind a negative income tax is to

Accepted Answer

A) help local government agencies deliver more services to the poor. 
B) increase the in-kind income of the poor. 
C) help the poor get job skills. 
D) help the poor without destroying incentives to work. 
A) help local government agencies deliver more services to the poor. 
B) increase the in-kind income of the poor. 
C) help the poor get job skills. 
D) help the poor without destroying incentives to work. D

Question 4

Since the 1970s, the share of income in the top fifth of households

Accepted Answer

A) has steadily increased. 
B) has steadily decreased. 
C) has remained relatively constant. 
D) dipped in the 1980s but increased since. 
A) has steadily increased. 
B) has steadily decreased. 
C) has remained relatively constant. 
D) dipped in the 1980s but increased since.

Question 5

The difference between the earnings of construction workers who work on bridges and skyscrapers and those who work on highways is probably due to

Accepted Answer

A) differences in education requirements. 
B) ability (mental)differences. 
C) a compensating differential. 
D) luck. 
A) differences in education requirements. 
B) ability (mental)differences. 
C) a compensating differential. 
D) luck.

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

By law, employers in the United States may not ask prospective female employees whether they plan to have babies. The existence of this law seems most likely to

Accepted Answer

A) increase the probability that firms will practice economic discrimination against women. 
B) decrease the probability that firms will practice economic discrimination against women. 
C) increase the probability that firms will practice statistical discrimination against women. 
D) decrease the probability that firms will practice statistical discrimination against women. 
A) increase the probability that firms will practice economic discrimination against women. 
B) decrease the probability that firms will practice economic discrimination against women. 
C) increase the probability that firms will practice statistical discrimination against women. 
D) decrease the probability that firms will practice statistical discrimination against women.

Question 8

Lyndon Johnson's "War on Poverty" started in the 1980s.

Accepted Answer

A) True 
 B)False

Question 9

In the negative income tax plan, a guarantee of $5,000 and a tax rate of 50 percent imply a break-even income of which of the following figures?

Accepted Answer

A) $1,000 
B) $2,500 
C) $10,000 
D) $12,500 
A) $1,000 
B) $2,500 
C) $10,000 
D) $12,500

Question 10

Death taxes, both state and federal, account for about _____ percent of total tax revenue.

Accepted Answer

A) 1 
B) 2 
C) 3 
D) 10 
A) 1 
B) 2 
C) 3 
D) 10

Question 11

Large income differences will be eradicated if the market mechanism is working well.

Accepted Answer

A) True 
 B)False

Question 12

Compensating wage differentials explain some income differences.

Accepted Answer

A) True 
 B)False

Question 13

Competitive forces will reduce the effects of employers' discrimination over time.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following tax does not decrease income inequality?

Accepted Answer

A) Sales taxes 
B) Personal income taxes 
C) Estate taxes 
D) Negative income taxes 
A) Sales taxes 
B) Personal income taxes 
C) Estate taxes 
D) Negative income taxes

Question 15

In 2017, about what percentage of total income was earned by the poorest fifth of all U.S. households?

Accepted Answer

A) 12 percent 
B) 6 percent 
C) 3 percent 
D) 1 percent 
A) 12 percent 
B) 6 percent 
C) 3 percent 
D) 1 percent

Question 16

In the United States, the distribution of income after the income tax is ____ the distribution of income before the income tax.

Accepted Answer

A) slightly less equal than 
B) about as equal as 
C) slightly more equal than 
D) a great deal more equal than 
A) slightly less equal than 
B) about as equal as 
C) slightly more equal than 
D) a great deal more equal than

Question 17

The welfare program economists believe to be most compatible with economic efficiency is

Accepted Answer

A) a regressive tax system. 
B) AFDC. 
C) a negative income tax. 
D) Medicare\Medicaid. 
A) a regressive tax system. 
B) AFDC. 
C) a negative income tax. 
D) Medicare\Medicaid.

Question 18

Generally speaking, markets do a(n)____ job of reconciling the demands of fairness and efficiency.

Accepted Answer

A) excellent 
B) above-average 
C) average 
D) poor 
A) excellent 
B) above-average 
C) average 
D) poor

Question 19

For most welfare recipients, the negative income tax plan would increase incentives to work.

Accepted Answer

A) True 
 B)False

Question 20

Under a system of free, competitive markets,

Accepted Answer

A) a society can usually achieve efficiency only at the expense of equality. 
B) poverty cannot exist in the long run. 
C) employers do not practice statistical discrimination. 
D) income is distributed equally across the population. 
A) a society can usually achieve efficiency only at the expense of equality. 
B) poverty cannot exist in the long run. 
C) employers do not practice statistical discrimination. 
D) income is distributed equally across the population.

Exam 20: Poverty, Inequality, and Discrimination

Nondiscriminatory firms hiring in the market place have a cost advantage.

Tax loopholes increase the progressivity of the federal income tax.

The basic idea behind a negative income tax is to

Since the 1970s, the share of income in the top fifth of households

The difference between the earnings of construction workers who work on bridges and skyscrapers and those who work on highways is probably due to

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

By law, employers in the United States may not ask prospective female employees whether they plan to have babies. The existence of this law seems most likely to

Lyndon Johnson's "War on Poverty" started in the 1980s.

In the negative income tax plan, a guarantee of $5,000 and a tax rate of 50 percent imply a break-even income of which of the following figures?

Death taxes, both state and federal, account for about _____ percent of total tax revenue.

Large income differences will be eradicated if the market mechanism is working well.

Compensating wage differentials explain some income differences.

Competitive forces will reduce the effects of employers' discrimination over time.

Which of the following tax does not decrease income inequality?

In 2017, about what percentage of total income was earned by the poorest fifth of all U.S. households?

In the United States, the distribution of income after the income tax is ____ the distribution of income before the income tax.

The welfare program economists believe to be most compatible with economic efficiency is

Generally speaking, markets do a(n)____ job of reconciling the demands of fairness and efficiency.

For most welfare recipients, the negative income tax plan would increase incentives to work.

Under a system of free, competitive markets,

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

The Financial Markets and the Economy: the Tail That Wags the Dog

The Firm and the Industry Under Perfect Competition

The Case for Free Markets: the Price System

Monopoly

Between Competition and Monopoly

Limiting Market Power: Antitrust and Regulation

The Shortcomings of Free Markets

Externalities, Externaliteis, the Environment, and Natural Resources

Taxation and Resource Allocation

Pricing the Factors of Production

Labor and Entrepreneurship: the Human Inputs

International Trade and Comparative Advantage

Contemporary Issues in the Us Economy

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