Question 1

Comparing the wealth and income distribution in the United States, we see that

Accepted Answer

A) wealth is distributed less equally than income. 
B) because wealth and income are different terms for the same thing, the distributions are the same. 
C) income is distributed less equally than wealth. 
D) we cannot compare the distribution of wealth and income. 
E) None of the above answers is correct. 
A) wealth is distributed less equally than income. 
B) because wealth and income are different terms for the same thing, the distributions are the same. 
C) income is distributed less equally than wealth. 
D) we cannot compare the distribution of wealth and income. 
E) None of the above answers is correct. A

Question 2

Discrimination

Accepted Answer

A) can be corrected by imposing a negative income tax. 
B) cannot explain economic inequality. 
C) immediately results in an unequal ownership of capital. 
D) is more likely to occur in a business where customers come into contact with minority employees. 
E) means that the costs paid by people who discriminate are lower than otherwise. 
A) can be corrected by imposing a negative income tax. 
B) cannot explain economic inequality. 
C) immediately results in an unequal ownership of capital. 
D) is more likely to occur in a business where customers come into contact with minority employees. 
E) means that the costs paid by people who discriminate are lower than otherwise. D

Question 3

A household's income earned from the markets for factors of production and with no government redistribution is

Accepted Answer

A) money income. 
B) welfare. 
C) market income. 
D) exploitative income. 
E) factored income. 
A) money income. 
B) welfare. 
C) market income. 
D) exploitative income. 
E) factored income. C

Question 4

Looking at wage differentials between white men and other groups in the United States, we see that

Accepted Answer

A) white men and black men earn about the same but women of all races earn less. 
B) white men earn more than black men but white women earn less than black men. 
C) black men earn less than white men and less than white women. 
D) white men and white women earn about the same but minorities earn less. 
E) black men and men of Hispanic origin earn about the same amount and both groups of men are paid more than black women and women of Hispanic origin. 
A) white men and black men earn about the same but women of all races earn less. 
B) white men earn more than black men but white women earn less than black men. 
C) black men earn less than white men and less than white women. 
D) white men and white women earn about the same but minorities earn less. 
E) black men and men of Hispanic origin earn about the same amount and both groups of men are paid more than black women and women of Hispanic origin.

Question 5

Of the following major characteristics that lead to income disparity, the factor with the smallest impact is

Accepted Answer

A) sex. 
B) race. 
C) region of the country. 
D) education. 
E) number of people in the household. 
A) sex. 
B) race. 
C) region of the country. 
D) education. 
E) number of people in the household.

Question 6

Social Security and unemployment compensation

Accepted Answer

A) are paid only to the poorest households. 
B) are both funded by income taxes. 
C) are distributed by individual states. 
D) both redistribute income. 
E) make the distribution of income less equal. 
A) are paid only to the poorest households. 
B) are both funded by income taxes. 
C) are distributed by individual states. 
D) both redistribute income. 
E) make the distribution of income less equal.

Question 7

Measured annual income inequality overstates actual lifetime inequality because

Accepted Answer

A) poverty levels vary across states. 
B) homeless people are not always counted. 
C) different households are in different stages in the life cycle. 
D) people tend to overstate their incomes. 
E) people differ in the amount of education they have attained. 
A) poverty levels vary across states. 
B) homeless people are not always counted. 
C) different households are in different stages in the life cycle. 
D) people tend to overstate their incomes. 
E) people differ in the amount of education they have attained.

Question 8

Pete just started a new job as an assembler and is earning a wage of $10 per hour.Sam, who is an experienced assembler assigned to train Pete, earns $15 per hour.The opportunity cost to Pete of acquiring this skill is

Accepted Answer

A) $25 per hour. 
B) $15 per hour. 
C) $10 per hour. 
D) $5 per hour. 
E) $0 per hour because Pete is being paid a wage. 
A) $25 per hour. 
B) $15 per hour. 
C) $10 per hour. 
D) $5 per hour. 
E) $0 per hour because Pete is being paid a wage.

Question 9

What determines the position of the supply curve of high-skilled workers relative to that of low-skilled workers?

Accepted Answer

A) the cost of acquiring the skill 
B) the difference in the demand curves for the two groups 
C) Bureau of Labor Standard guidelines 
D) the difference in the value of the marginal products 
E) None of the above answers is correct. 
A) the cost of acquiring the skill 
B) the difference in the demand curves for the two groups 
C) Bureau of Labor Standard guidelines 
D) the difference in the value of the marginal products 
E) None of the above answers is correct.

Question 10

If all households in a nation receive the same income, the nation's Lorenz curve

Accepted Answer

A) is horizontal. 
B) is vertical. 
C) is a 45° line. 
D) runs along the horizontal axis until it reaches 50 percent of households and then runs vertically up to 100 percent of income. 
E) runs along the horizontal axis until it reaches 100 percent of households and then runs vertically up to 100 percent of income. 
A) is horizontal. 
B) is vertical. 
C) is a 45° line. 
D) runs along the horizontal axis until it reaches 50 percent of households and then runs vertically up to 100 percent of income. 
E) runs along the horizontal axis until it reaches 100 percent of households and then runs vertically up to 100 percent of income.

Question 11

Inequality in the distribution of income and wealth is increased by

Accepted Answer

A) the point that the children of the poorest find it difficult to get into college. 
B) saving to redistribute an uneven income over the life cycle. 
C) marrying outside one's own socioeconomic class. 
D) donating money to charities. 
E) the U.S. income tax. 
A) the point that the children of the poorest find it difficult to get into college. 
B) saving to redistribute an uneven income over the life cycle. 
C) marrying outside one's own socioeconomic class. 
D) donating money to charities. 
E) the U.S. income tax.

Question 12

Describe the effect education and training have on outcomes in the labor market.

Accepted Answer

Education and training affect both the s

Question 13

The figure above shows the demand and supply curves for high-skilled (indicated by an "H" subscript)and low-skilled (indicated by an "L" subscript)workers.
-In the figure above, the value of the marginal product of skill creates the difference between the ________ curves and ________.

Accepted Answer

A) SL and SH; is equal to $10 per hour 
B) SL and SH; exceeds $10 per hour 
C) DL and DH; is less than $10 per hour 
D) DL and DH; is equal to $10 per hour 
E) DL and DH; exceeds $10 per hour 
A) SL and SH; is equal to $10 per hour 
B) SL and SH; exceeds $10 per hour 
C) DL and DH; is less than $10 per hour 
D) DL and DH; is equal to $10 per hour 
E) DL and DH; exceeds $10 per hour

Question 14

At any wage rate, the quantity of welders willing to work is less than the quantity of tomato pickers.Why?

Accepted Answer

For the welder the cost of acquiring his

Question 15

If discrimination against women decreases their value of marginal product, then women will have ________ wage rate than men and there will be ________ high-paying jobs for women.

Accepted Answer

A) a lower; more 
B) a higher; fewer 
C) a lower; fewer 
D) a higher; more 
E) the same; fewer 
A) a lower; more 
B) a higher; fewer 
C) a lower; fewer 
D) a higher; more 
E) the same; fewer

Question 16

Describe the characteristics of the typical lowest income household in the United States and the characteristics of the typical richest household in the United States.

Accepted Answer

The typical lowest income household has

Question 17

The inequality of annual income

Accepted Answer

A) overstates the amount of lifetime inequality. 
B) understates the amount of lifetime inequality. 
C) cannot change from one year to the next. 
D) is about the same as the amount of lifetime inequality. 
E) cannot be compared to the amount of lifetime inequality. 
A) overstates the amount of lifetime inequality. 
B) understates the amount of lifetime inequality. 
C) cannot change from one year to the next. 
D) is about the same as the amount of lifetime inequality. 
E) cannot be compared to the amount of lifetime inequality.

Question 18

Looking at the results of government income redistribution programs, we find that the income received by the

Accepted Answer

A) lowest 20 percent of households is almost unchanged because most don't work. 
B) highest 20 percent is left unaffected because they are able to shelter income from taxes. 
C) lowest 20 percent increases and the income received by the highest 20 percent decreases. 
D) lowest 20 percent increases somewhat but the income received by the next 20 percent increases the most. 
E) lowest 20 percent decreases because of government taxes and the income received by the highest 20 percent increases because of government subsidies. 
A) lowest 20 percent of households is almost unchanged because most don't work. 
B) highest 20 percent is left unaffected because they are able to shelter income from taxes. 
C) lowest 20 percent increases and the income received by the highest 20 percent decreases. 
D) lowest 20 percent increases somewhat but the income received by the next 20 percent increases the most. 
E) lowest 20 percent decreases because of government taxes and the income received by the highest 20 percent increases because of government subsidies.

Question 19

The table gives the distribution of income in Miseria.
-What percent of income is earned by the poorest 60 percent of the population?

Accepted Answer

A) 25 percent 
B) 30 percent 
C) 55 percent 
D) 15 percent 
E) More information is needed to answer the question. 
A) 25 percent 
B) 30 percent 
C) 55 percent 
D) 15 percent 
E) More information is needed to answer the question.

Question 20

A negative income tax is a system that, in part,

Accepted Answer

A) taxes lower-income households at a higher rate. 
B) taxes higher-income households at a higher rate. 
C) guarantees a minimum level of income for all households. 
D) gives money from taxes paid by the poor to wealthy investors. 
E) guarantees a minimum level of taxation for all households. 
A) taxes lower-income households at a higher rate. 
B) taxes higher-income households at a higher rate. 
C) guarantees a minimum level of income for all households. 
D) gives money from taxes paid by the poor to wealthy investors. 
E) guarantees a minimum level of taxation for all households.

Comparing the wealth and income distribution in the United States, we see that

Discrimination

A household's income earned from the markets for factors of production and with no government redistribution is

Looking at wage differentials between white men and other groups in the United States, we see that

Of the following major characteristics that lead to income disparity, the factor with the smallest impact is

Social Security and unemployment compensation

Measured annual income inequality overstates actual lifetime inequality because

Pete just started a new job as an assembler and is earning a wage of $10 per hour.Sam, who is an experienced assembler assigned to train Pete, earns $15 per hour.The opportunity cost to Pete of acquiring this skill is

What determines the position of the supply curve of high-skilled workers relative to that of low-skilled workers?

If all households in a nation receive the same income, the nation's Lorenz curve

Inequality in the distribution of income and wealth is increased by

Describe the effect education and training have on outcomes in the labor market.

The figure above shows the demand and supply curves for high-skilled (indicated by an "H" subscript)and low-skilled (indicated by an "L" subscript)workers. -In the figure above, the value of the marginal product of skill creates the difference between the curves and .

At any wage rate, the quantity of welders willing to work is less than the quantity of tomato pickers.Why?

If discrimination against women decreases their value of marginal product, then women will have wage rate than men and there will be high-paying jobs for women.

Describe the characteristics of the typical lowest income household in the United States and the characteristics of the typical richest household in the United States.

The inequality of annual income

Looking at the results of government income redistribution programs, we find that the income received by the

The table gives the distribution of income in Miseria. -What percent of income is earned by the poorest 60 percent of the population?

A negative income tax is a system that, in part,

Getting Started

The Usand Global Economies

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Taxes

Global Markets in Action

Externalities

Public Goods and Common Resources

Markets With Private Information

Consumer Choice and Demand

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Markets for Factors of Production

Filters

Exam 20: Economic Inequality

Comparing the wealth and income distribution in the United States, we see that

Discrimination

A household's income earned from the markets for factors of production and with no government redistribution is

Looking at wage differentials between white men and other groups in the United States, we see that

Of the following major characteristics that lead to income disparity, the factor with the smallest impact is

Social Security and unemployment compensation

Measured annual income inequality overstates actual lifetime inequality because

Pete just started a new job as an assembler and is earning a wage of $10 per hour.Sam, who is an experienced assembler assigned to train Pete, earns $15 per hour.The opportunity cost to Pete of acquiring this skill is

What determines the position of the supply curve of high-skilled workers relative to that of low-skilled workers?

If all households in a nation receive the same income, the nation's Lorenz curve

Inequality in the distribution of income and wealth is increased by

Describe the effect education and training have on outcomes in the labor market.

The figure above shows the demand and supply curves for high-skilled (indicated by an "H" subscript)and low-skilled (indicated by an "L" subscript)workers. -In the figure above, the value of the marginal product of skill creates the difference between the ________ curves and ________.

At any wage rate, the quantity of welders willing to work is less than the quantity of tomato pickers.Why?

If discrimination against women decreases their value of marginal product, then women will have ________ wage rate than men and there will be ________ high-paying jobs for women.

Describe the characteristics of the typical lowest income household in the United States and the characteristics of the typical richest household in the United States.

The inequality of annual income

Looking at the results of government income redistribution programs, we find that the income received by the

The table gives the distribution of income in Miseria. -What percent of income is earned by the poorest 60 percent of the population?

A negative income tax is a system that, in part,

Getting Started

The Usand Global Economies

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Taxes

Global Markets in Action

Externalities

Public Goods and Common Resources

Markets With Private Information

Consumer Choice and Demand

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Markets for Factors of Production

Filters

The figure above shows the demand and supply curves for high-skilled (indicated by an "H" subscript)and low-skilled (indicated by an "L" subscript)workers. -In the figure above, the value of the marginal product of skill creates the difference between the curves and .

If discrimination against women decreases their value of marginal product, then women will have wage rate than men and there will be high-paying jobs for women.