Question 1

What is the lowest value the 80/20 ratio can take?

Accepted Answer

A)  -1. 
B)  0. 
C)  1. 
D) 100. 
A)  -1. 
B)  0. 
C)  1. 
D) 100. C

Question 2

Which of the following statements is FALSE?

Accepted Answer

A)  Worldwide, no countries are catching up to the United States with respect to GDP per capita. 
B)  Income distributions have become less equal in the United States in the past 30 years. 
C)  Higher taxes tend to reduce the incentive to work productively and innovate. 
D)  The poverty rate measures the percentage of people living in households with incomes below the poverty line. 
A)  Worldwide, no countries are catching up to the United States with respect to GDP per capita. 
B)  Income distributions have become less equal in the United States in the past 30 years. 
C)  Higher taxes tend to reduce the incentive to work productively and innovate. 
D)  The poverty rate measures the percentage of people living in households with incomes below the poverty line. A

Question 3

The combined impact of the labor pool effect of globalization for low-skilled workers and the market expansion effect of globalization for high-skilled workers is

Accepted Answer

A)  falling income inequality, since one effect helps those with low incomes and the other effect hurts those with high incomes. 
B)  stable income inequality, since one effect helps those with low incomes and the other effect helps those with high incomes. 
C)  rising income inequality, since one effect helps those with high incomes and the other effect hurts those with low incomes. 
D)  stable income inequality, since one effect hurts those with low incomes and the other effect hurts those with high incomes. 
A)  falling income inequality, since one effect helps those with low incomes and the other effect hurts those with high incomes. 
B)  stable income inequality, since one effect helps those with low incomes and the other effect helps those with high incomes. 
C)  rising income inequality, since one effect helps those with high incomes and the other effect hurts those with low incomes. 
D)  stable income inequality, since one effect hurts those with low incomes and the other effect hurts those with high incomes. C

Question 4

An increase in the returns to a college education has increased inequality of income.

Accepted Answer

A) True 
 B)False

Question 5

Why might people object to a regressive tax structure?

Accepted Answer

A regressive tax requires people with a

Question 6

Under the current federal income tax laws,a person who has a high income is likely to

Accepted Answer

A)  pay a larger percentage of income in taxes than the average taxpayer. 
B)  pay a smaller percentage of income in taxes than the average taxpayer. 
C)  receive a substantial benefit from the earned income tax credit. 
D)  spend a larger fraction of total income than a low-income taxpayer. 
A)  pay a larger percentage of income in taxes than the average taxpayer. 
B)  pay a smaller percentage of income in taxes than the average taxpayer. 
C)  receive a substantial benefit from the earned income tax credit. 
D)  spend a larger fraction of total income than a low-income taxpayer.

Question 7

Give a brief explanation of the "superstar economy" as a factor in the widening of income inequality.

Accepted Answer

As the markets expand to become more com

Question 8

An economy where there is a wide gap between the compensation of the top people in certain fields and the merely competent people is called a(n)

Accepted Answer

A)  inequality economy. 
B)  superstar economy. 
C)  hyperinflation economy. 
D)  competitive economy. 
A)  inequality economy. 
B)  superstar economy. 
C)  hyperinflation economy. 
D)  competitive economy.

Question 9

A sales tax is usually considered to be a

Accepted Answer

A)  progressive tax. 
B)  regressive tax. 
C)  proportional tax. 
D)  flat tax. 
A)  progressive tax. 
B)  regressive tax. 
C)  proportional tax. 
D)  flat tax.

Question 10

In the United States,some groups have higher incomes than others.Which of these would be considered discrimination?

Accepted Answer

A)  English professors, who are more likely to be female than engineering professors, are paid less than engineering professors. 
B)  A male employee is paid more than an equally qualified female employee because the male employee is a manager and the female employee is not. 
C)  College-educated employees are consistently paid more than employees without a college education. 
D)  White candidates for a job opening are consistently preferred over equally qualified black candidates for the same position. 
A)  English professors, who are more likely to be female than engineering professors, are paid less than engineering professors. 
B)  A male employee is paid more than an equally qualified female employee because the male employee is a manager and the female employee is not. 
C)  College-educated employees are consistently paid more than employees without a college education. 
D)  White candidates for a job opening are consistently preferred over equally qualified black candidates for the same position.

Question 11

The Social Security and Medicare taxes in the United States,which are payroll taxes,fit the description of which of the following tax structures?

Accepted Answer

A)  Regressive. 
B)  Proportional. 
C)  Progressive. 
D)  It depends on the income of the individual being taxed. 
A)  Regressive. 
B)  Proportional. 
C)  Progressive. 
D)  It depends on the income of the individual being taxed.

Question 12

The federal income tax in the United States fits the description of which of the following tax structures?

Accepted Answer

A)  regressive. 
B)  proportional. 
C)  progressive. 
D)  it depends on the income of the individual being taxed. 
A)  regressive. 
B)  proportional. 
C)  progressive. 
D)  it depends on the income of the individual being taxed.

Question 13

How has global trade affected income inequality? Explain briefly.

Accepted Answer

The labor pool effect of globalization m

Question 14

The percentage of U.S.citizens living below the poverty line is higher today than it was for most of the 1970s.

Accepted Answer

A) True 
 B)False

Question 15

Differences in pay between men and women in the United States could be at least partially explained by all of the following EXCEPT

Accepted Answer

A)  occupational choices in which women choose work with greater flexibility but lower pay. 
B)  gender discrimination. 
C)  interruptions in women's careers to spend time raising children are more common than for men. 
D)  large differences in education levels between men and women. 
A)  occupational choices in which women choose work with greater flexibility but lower pay. 
B)  gender discrimination. 
C)  interruptions in women's careers to spend time raising children are more common than for men. 
D)  large differences in education levels between men and women.

Question 16

In the last two decades,women have completely closed the gender earnings gap.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is among the arguments for using government intervention to reduce income inequality?

Accepted Answer

A)  Taking money away from individuals who have earned it is unfair and immoral. 
B)  Government intervention is more effective in promoting creativity and hard work than the hope of higher earnings. 
C)  Large income differences eventually lead to political strife and will undermine support for a market economy. 
D)  The income distribution statistics understate inequality because they fail to take economic mobility into account. 
A)  Taking money away from individuals who have earned it is unfair and immoral. 
B)  Government intervention is more effective in promoting creativity and hard work than the hope of higher earnings. 
C)  Large income differences eventually lead to political strife and will undermine support for a market economy. 
D)  The income distribution statistics understate inequality because they fail to take economic mobility into account.

Question 18

The bottom quintile of income earners would be those whose income is

Accepted Answer

A)  in the lowest 5 percent. 
B)  in the lowest 20 percent. 
C)  in the highest 20 percent. 
D)  lower than the highest 20 percent of households. 
A)  in the lowest 5 percent. 
B)  in the lowest 20 percent. 
C)  in the highest 20 percent. 
D)  lower than the highest 20 percent of households.

Question 19

Which of the following statements about the poverty line is true?

Accepted Answer

A)  The poverty line is adjusted upward for inflation every year. 
B)  The percentage of people living below the poverty line has approximately doubled in the last 40 years. 
C)  The percentage of people living below the poverty line has been cut in half in the last 40 years. 
D)  The percentage of people over 65 living below the poverty line has approximately doubled in the last 40 years. 
A)  The poverty line is adjusted upward for inflation every year. 
B)  The percentage of people living below the poverty line has approximately doubled in the last 40 years. 
C)  The percentage of people living below the poverty line has been cut in half in the last 40 years. 
D)  The percentage of people over 65 living below the poverty line has approximately doubled in the last 40 years.

Question 20

The 80/20 ratio is found by dividing the

Accepted Answer

A)  number of households making less than 80 percent of the poverty line by the number of households making more than 20 times the poverty line. 
B)  income at the 80th percentile by the income at the 20th percentile. 
C)  average income of those below the 80th percentile by the average income of those above the 80th percentile (top 20 percent). 
D)  average income of the top 80 percent of income earners by the average income of the top 20 percent of income earners. 
A)  number of households making less than 80 percent of the poverty line by the number of households making more than 20 times the poverty line. 
B)  income at the 80th percentile by the income at the 20th percentile. 
C)  average income of those below the 80th percentile by the average income of those above the 80th percentile (top 20 percent). 
D)  average income of the top 80 percent of income earners by the average income of the top 20 percent of income earners.

What is the lowest value the 80/20 ratio can take?

Which of the following statements is FALSE?

The combined impact of the labor pool effect of globalization for low-skilled workers and the market expansion effect of globalization for high-skilled workers is

An increase in the returns to a college education has increased inequality of income.

Why might people object to a regressive tax structure?

Under the current federal income tax laws,a person who has a high income is likely to

Give a brief explanation of the "superstar economy" as a factor in the widening of income inequality.

An economy where there is a wide gap between the compensation of the top people in certain fields and the merely competent people is called a(n)

A sales tax is usually considered to be a

In the United States,some groups have higher incomes than others.Which of these would be considered discrimination?

The Social Security and Medicare taxes in the United States,which are payroll taxes,fit the description of which of the following tax structures?

The federal income tax in the United States fits the description of which of the following tax structures?

How has global trade affected income inequality? Explain briefly.

The percentage of U.S.citizens living below the poverty line is higher today than it was for most of the 1970s.

Differences in pay between men and women in the United States could be at least partially explained by all of the following EXCEPT

In the last two decades,women have completely closed the gender earnings gap.

Which of the following is among the arguments for using government intervention to reduce income inequality?

The bottom quintile of income earners would be those whose income is

Which of the following statements about the poverty line is true?

The 80/20 ratio is found by dividing the

Introduction

Demand and Supply: The Basics of the Market Economy

Market Equilibrium and Shifts

How Businesses Work

Competition and Market Power

Government and the Economy

The First Step Into Macroeconomics

Inflation

Growth

Business Cycles, unemployment and Inflation

Fiscal Policy

Monetary Policy

The Financial Markets

International Trade

Technological Change

Economics of the Labor Market

Economics of Retirement and Healthcare

Economics of Energy, the Environment, and Global Climate Change Glossary

Filters

Exam 17: The Distribution of Income

What is the lowest value the 80/20 ratio can take?

Which of the following statements is FALSE?

The combined impact of the labor pool effect of globalization for low-skilled workers and the market expansion effect of globalization for high-skilled workers is

An increase in the returns to a college education has increased inequality of income.

Why might people object to a regressive tax structure?

Under the current federal income tax laws,a person who has a high income is likely to

Give a brief explanation of the "superstar economy" as a factor in the widening of income inequality.

An economy where there is a wide gap between the compensation of the top people in certain fields and the merely competent people is called a(n)

A sales tax is usually considered to be a

In the United States,some groups have higher incomes than others.Which of these would be considered discrimination?

The Social Security and Medicare taxes in the United States,which are payroll taxes,fit the description of which of the following tax structures?

The federal income tax in the United States fits the description of which of the following tax structures?

How has global trade affected income inequality? Explain briefly.

The percentage of U.S.citizens living below the poverty line is higher today than it was for most of the 1970s.

Differences in pay between men and women in the United States could be at least partially explained by all of the following EXCEPT

In the last two decades,women have completely closed the gender earnings gap.

Which of the following is among the arguments for using government intervention to reduce income inequality?

The bottom quintile of income earners would be those whose income is

Which of the following statements about the poverty line is true?

The 80/20 ratio is found by dividing the

Introduction

Demand and Supply: The Basics of the Market Economy

Market Equilibrium and Shifts

How Businesses Work

Competition and Market Power

Government and the Economy

The First Step Into Macroeconomics

Inflation

Growth

Business Cycles, unemployment and Inflation

Fiscal Policy

Monetary Policy

The Financial Markets

International Trade

Technological Change

Economics of the Labor Market

Economics of Retirement and Healthcare

Economics of Energy, the Environment, and Global Climate Change Glossary

Filters