Question 1

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

Accepted Answer

A) True 
 B)False  True

Question 2

Which of the following countries has the most equal income distribution?

Accepted Answer

A) Sweden 
B) Japan 
C) United States 
D) Netherlands 
A) Sweden 
B) Japan 
C) United States 
D) Netherlands A

Question 3

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

Accepted Answer

A) True 
 B)False  False

Question 4

Affirmative action laws require employers to search for qualified minority applicants,but not to necessarily give them jobs.

Accepted Answer

A) True 
 B)False

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

With a negative income tax,the larger the difference between the break-even income level and the guaranteed level,

Accepted Answer

A) the greater the tax rate (by definition). 
B) the greater the incentive to work. 
C) the smaller the number of people eligible to receive benefits. 
D) the more inequitable the resulting distribution of income will be. 
A) the greater the tax rate (by definition). 
B) the greater the incentive to work. 
C) the smaller the number of people eligible to receive benefits. 
D) the more inequitable the resulting distribution of income will be.

Question 7

The public assistance program that economists believe can promote economic equality at the least cost in economic efficiency is

Accepted Answer

A) Aid to Families with Dependent Children (AFD
C) . 
B) a negative income tax (NIT). 
C) food stamps. 
D) Medicaid. 
A) Aid to Families with Dependent Children (AFD
C) . 
B) a negative income tax (NIT). 
C) food stamps. 
D) Medicaid.

Question 8

Which of the following is a source of income inequality?

Accepted Answer

A) differences in ability 
B) differences in work intensity 
C) risk taking 
D) all of the above 
A) differences in ability 
B) differences in work intensity 
C) risk taking 
D) all of the above

Question 9

Which of the following best describes compensating wage differentials?

Accepted Answer

A) Some jobs are more difficult than others, and the pay for them reflects this. 
B) Some jobs require more training than others, and the pay for them reflects this. 
C) Some jobs require more experience than others, and the pay for them reflects this. 
D) Some jobs require unique abilities, and the pay for them reflects this. 
A) Some jobs are more difficult than others, and the pay for them reflects this. 
B) Some jobs require more training than others, and the pay for them reflects this. 
C) Some jobs require more experience than others, and the pay for them reflects this. 
D) Some jobs require unique abilities, and the pay for them reflects this.

Question 10

Affirmative action programs,

Accepted Answer

A) according to critics, are clearly quota systems that lead to reverse discrimination. 
B) according to supporters, make efforts to find qualified minorities and women and hire them. 
C) according to critics, clearly lead to the hiring of unqualified people and thus reduce efficiency. 
D) All of the above are true. 
A) according to critics, are clearly quota systems that lead to reverse discrimination. 
B) according to supporters, make efforts to find qualified minorities and women and hire them. 
C) according to critics, clearly lead to the hiring of unqualified people and thus reduce efficiency. 
D) All of the above are true.

Question 11

What are the two important programs in practice in America that strongly resemble a negative income tax?

Accepted Answer

1.Food Stamps program: Food Stamp benefi

Question 12

How do income redistribution programs affect equality and efficiency?

Accepted Answer

Programs intended to improve equality by

Question 13

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 14

In 1964,the poverty line for a family stood at about which of the following figures?

Accepted Answer

A) $2,100 
B) $3,000 
C) $4,500 
D) $7,500 
A) $2,100 
B) $3,000 
C) $4,500 
D) $7,500

Question 15

Unequal incomes arise from

Accepted Answer

A) discrimination. 
B) luck. 
C) different schooling. 
D) all of the above factors. 
A) discrimination. 
B) luck. 
C) different schooling. 
D) all of the above factors.

Question 16

Roughly what percentage of Americans were officially considered poor in 2009?

Accepted Answer

A) 1.5 percent 
B) 8.6 percent 
C) 14.3 percent 
D) 22.1 percent 
A) 1.5 percent 
B) 8.6 percent 
C) 14.3 percent 
D) 22.1 percent

Question 17

In the United States,the incidence of poverty has declined since the 1970s.

Accepted Answer

A) True 
 B)False

Question 18

The poverty line is the income level

Accepted Answer

A) earned by a worker employed full-time at the minimum wage. 
B) below which a family is officially considered "poor." 
C) above which a family is not entitled to government assistance. 
D) that is the average for American families. 
A) earned by a worker employed full-time at the minimum wage. 
B) below which a family is officially considered "poor." 
C) above which a family is not entitled to government assistance. 
D) that is the average for American families.

Question 19

The total amount of income in a society is independent of how income is distributed.

Accepted Answer

A) True 
 B)False

Question 20

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.

Exam 21: Poverty, Inequality, and Discrimination

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

Which of the following countries has the most equal income distribution?

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

Affirmative action laws require employers to search for qualified minority applicants,but not to necessarily give them jobs.

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

With a negative income tax,the larger the difference between the break-even income level and the guaranteed level,

The public assistance program that economists believe can promote economic equality at the least cost in economic efficiency is

Which of the following is a source of income inequality?

Which of the following best describes compensating wage differentials?

Affirmative action programs,

What are the two important programs in practice in America that strongly resemble a negative income tax?

How do income redistribution programs affect equality and efficiency?

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

In 1964,the poverty line for a family stood at about which of the following figures?

Unequal incomes arise from

Roughly what percentage of Americans were officially considered poor in 2009?

In the United States,the incidence of poverty has declined since the 1970s.

The poverty line is the income level

The total amount of income in a society is independent of how income is distributed.

Many economists believe that

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 I: the Price System

The Shortcomings of Free Markets

The Markets Prime Achievement: Innovation and Growth

Externalities, 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

Filters