Question 1

What are the three ways that the government redistributes income in the United States? Briefly discuss each.

Accepted Answer

The government redistributes income usin...

Question 2

H A)  and the curve SL leftward. B)  and the curve SL rightward. C)  leftward and the curve SL rightward. D)  rightward and the curve SL leftward." class="answers-bank-image d-inline" rel="preload" >
-In the above figure, the long-run effect of providing university education at no charge to all qualified applicants would be to shift the curve SH

Accepted Answer

A)   and the curve SL leftward.
B)   and the curve SL rightward.
C)   leftward and the curve SL rightward.
D)   rightward and the curve SL leftward.E) A) and B)
F) A) and C)

Question 3

Albert, Betty, and Cecile live in Norland. Their annual incomes and the amounts they pay in income tax are shown in the table below.  The income tax in Norland is

Accepted Answer

A)   proportional.
B)   fair.
C)   regressive.
D)   progressive.E) A) and B)
F) A) and C)

Question 4

If one person has all the income and everyone else has none, the Gini ratio is 1.

Accepted Answer

A) True 
 B)False

Question 5

All of the following are programs that redistribute income by making direct payments to people in the lower part of the income distribution EXCEPT

Accepted Answer

A)   social security programs.
B)   welfare programs.
C)   Individual Retirement Accounts.
D)   unemployment compensation.E) B) and D)
F) None of the above

Question 6

-In the figure above, if information technologies are introduced that are complements for high-skilled workers and substitutes for low-skilled workers, the wage rate of high-skilled workers will ________ and the wage rate of low-skilled workers will ________.

Accepted Answer

A)   rise; fall
B)   fall; rise
C)   fall; fall
D)   rise; riseE) C) and D)
F) None of the above

Question 7

-The figure shows two Lorenz curves. Suppose both Lorenz curves measure income. Lorenz curve A shows ________ Lorenz curve B.

Accepted Answer

A)   income is more equally distributed than the income shown in
B)   income is less equally distributed than the income shown in
C)   the first quintile earns less income than the first quintile earned in
D)   the fifth quintile earns more income than the fifth quintile earned inE) None of the above
F) A) and D)

Question 8

-The above figure shows two Lorenz curves. Suppose both Lorenz curves measure wealth. Then, the curves show that wealth is

Accepted Answer

A)   greater along Lorenz curve A.
B)   greater along Lorenz curve B.
C)   distributed more equally along Lorenz curve A.
D)   distributed more equally along Lorenz curve B.E) C) and D)
F) All of the above

Question 9

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 10

Of age, marital status, family size, education, and race, which is the single biggest factor affecting the household income distribution?

Accepted Answer

The single most important fact...

Question 11

-The above figure shows the Lorenz curve for wealth for the nation of Rusha. The wealthiest forty percent of the population own what percent of wealth?

Accepted Answer

A)   40 percent
B)   50 percent
C)   60 percent
D)   100 percentE) None of the above
F) A) and C)

Question 12

Mode income is

Accepted Answer

A)   the most common income.
B)   the average income.
C)   the middle income level.
D)   the same as money income.E) A) and B)
F) All of the above

Question 13

-The above figure shows the Lorenz curves for four different countries. Which of the following statements is FALSE?

Accepted Answer

A)   Country A has an income distribution that is not perfectly equal.
B)   Country D's income distribution is the most unequal of the four countries.
C)   The distribution of income is more unequal in country A than in country B.
D)   The distribution of income is more unequal in country D than in country C.E) None of the above
F) B) and D)

Question 14

-In the above table, which plan is a flat-rate tax?

Accepted Answer

A)   only plan A
B)   only plan B
C)   only plan C
D)   both plan A and plan CE) All of the above
F) None of the above

Question 15

If both rich and poor families pay 25 percent of their income in taxes, the tax scheme is ________.

Accepted Answer

A)   proportional
B)   regressive
C)   negative
D)   progressiveE) A) and D)
F) A) and C)

Question 16

Market income in the United States is distributed

Accepted Answer

A)   more unequally than income after taxes and benefits.
B)   less unequally than income after taxes and benefits.
C)   the same as income after taxes and benefits.
D)   according to a big tradeoff between equity and equalityE) C) and D)
F) None of the above

Question 17

Relative to the demand curve for low-skilled workers, the demand curve for high-skilled workers lies

Accepted Answer

A)   to the right.
B)   to the left.
C)   below.
D)   in the same place.E) B) and D)
F) B) and C)

Question 18

The mean household income is

Accepted Answer

A)   the income that separates households into two equal groups.
B)   the most common household income.
C)   the percentage of total income received by the richest 20 percent of households.
D)   the average household income.E) None of the above
F) A) and B)

Question 19

The higher the cost of acquiring skills, the ________ are the high-skilled and low-skilled labor ________ curves.

Accepted Answer

A)   closer together; demand
B)   farther apart; demand
C)   closer together; supply
D)   farther apart; supplyE) A) and C)
F) None of the above

Question 20

-In the figure above, if income were distributed equally across all households, the poorest 10 percent of households would receive ________ of total income.

Accepted Answer

A)   5 percent
B)   10 percent
C)   15 percent
D)   20 percentE) C) and D)
F) None of the above

Exam 19: Economic Inequality

-In the above table, which plan is a flat-rate tax?

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Albert, Betty, and Cecile live in Norland. Their annual incomes and the amounts they pay in income tax are shown in the table below. The income tax in Norland is

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Market income in the United States is distributed

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-The above figure shows the Lorenz curves for four different countries. Which of the following statements is FALSE?

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The mean household income is

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Relative to the demand curve for low-skilled workers, the demand curve for high-skilled workers lies

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Of age, marital status, family size, education, and race, which is the single biggest factor affecting the household income distribution?

Correct AnswerverifiedThe single most important fact...View AnswerShow Answer

-In the figure above, if information technologies are introduced that are complements for high-skilled workers and substitutes for low-skilled workers, the wage rate of high-skilled workers will ________ and the wage rate of low-skilled workers will ________.

Correct AnswerverifiedShow Answer

All of the following are programs that redistribute income by making direct payments to people in the lower part of the income distribution EXCEPT

Correct AnswerverifiedShow Answer

-The above figure shows two Lorenz curves. Suppose both Lorenz curves measure wealth. Then, the curves show that wealth is

Correct AnswerverifiedShow Answer

If both rich and poor families pay 25 percent of their income in taxes, the tax scheme is ________.

Correct AnswerverifiedShow Answer

-The above figure shows the Lorenz curve for wealth for the nation of Rusha. The wealthiest forty percent of the population own what percent of wealth?

Correct AnswerverifiedShow Answer

Mode income is

Correct AnswerverifiedShow Answer

-In the above figure, the long-run effect of providing university education at no charge to all qualified applicants would be to shift the curve SH

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedFor the welder the cost of acquiring his...View AnswerShow Answer

The higher the cost of acquiring skills, the ________ are the high-skilled and low-skilled labor ________ curves.

Correct AnswerverifiedShow Answer

What are the three ways that the government redistributes income in the United States? Briefly discuss each.

Correct AnswerverifiedThe government redistributes income usin...View AnswerShow Answer

-The figure shows two Lorenz curves. Suppose both Lorenz curves measure income. Lorenz curve A shows ________ Lorenz curve B.

Correct AnswerverifiedShow Answer

-In the figure above, if income were distributed equally across all households, the poorest 10 percent of households would receive ________ of total income.

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If one person has all the income and everyone else has none, the Gini ratio is 1.

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The single most important fact...
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-In the figure above, if information technologies are introduced that are complements for high-skilled workers and substitutes for low-skilled workers, the wage rate of high-skilled workers will and the wage rate of low-skilled workers will .

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-In the above figure, the long-run effect of providing university education at no charge to all qualified applicants would be to shift the curve S_H

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For the welder the cost of acquiring his...
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The higher the cost of acquiring skills, the are the high-skilled and low-skilled labor curves.

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The government redistributes income usin...
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