Question 1

The ________ is a comparison of the wealth in the top and bottom quintiles of an economy.

Accepted Answer

A)   income inequality ratio
B)   wealth distribution index
C)   poverty production percentage
D)   income parity ratio
E)   economic freedom indexF) None of the above
G) A) and D)

Question 2

Besides sex discrimination,women might earn less than men in the workplace because women

Accepted Answer

A)   have more human capital.
B)   have fewer years of work experience.
C)   have more years of work experience.
D)   work more hours per year.
E)   more frequently belong to a union.F) A) and D)
G) A) and B)

Question 3

As an Internet retailer,Luciana needs to find a location for her headquarters.If Luciana is primarily concerned with the cost of labor and wants to pay those she hires as little as possible,Luciana should establish her business in a(n)

Accepted Answer

A)   location with a lot of good restaurants.
B)   cold location in a rural area.
C)   urban location that has a lot of crime.
D)   rural location that has frequent wildfires and floods.
E)   urban location with a lot of earthquakes.F) A) and C)
G) B) and E)

Question 4

According to the text,in the time since the passage of the Equal Opportunity Act in 1964,the poverty rate has gone up,while economic output has roughly doubled.What is the most likely reason for this phenomenon?

Accepted Answer

A)   Skills,training,and education among the poorest citizens have been insufficient to capture much of the benefit from economic expansion.
B)   Generally,only the wealthy benefit from economic prosperity,and that period was no different than any other.
C)   Over a 50-year period,people move up and down the economic ladder,so that level of poverty is just natural and will always exist.
D)   The law had unintended consequences and proved to serve as an effective tax on the poor,transferring wealth to the affluent and the middle class.
E)   The poverty threshold,as determined by the federal government,has outpaced the rate of economic growth.F) A) and E)
G) B) and C)

Question 5

Which social welfare policy is most likely to produce unemployment?

Accepted Answer

A)   Subsidized Nutritional Assistance Program (SNAP) 
B)   Earned Income Tax Credit (EIT
C)  
C)   minimum wage
D)   Medicaid
E)   Supplemental Security Income (SSI) F) A) and B)
G) D) and E)

Question 6

Income mobility represents the ________ of a worker to ________.

Accepted Answer

A)   inability; move to a job.
B)   inability; be trained and earn less.
C)   inability; be trained and earn more.
D)   ability; move to a job where he or she can earn the most.
E)   ability; move up or down the economic ladder.F) A) and B)
G) D) and E)

Question 7

How has the samaritan's dilemma informed the creation of the earned income tax credit? Be sure to define the samaritan's dilemma in your answer.

Accepted Answer

The samaritan's dilemma occurs when an a...

Question 8

In terms of income mobility,why might Rashida be concerned about the fact that her 45-year-old uncle earns the minimum wage at a 30-hour-per-week job in a fast-food restaurant?

Accepted Answer

Her uncle likely lacks the education and...

Question 9

How do government programs affect the distribution of income in the United States?

Accepted Answer

Government programs are generally design...

Question 10

The Gini index can be calculated by determining the areas above and below the Lorenz curve and using the expression ________.

Accepted Answer

A)   
B)   
C)   
D)  
E)   F) C) and E)
G) B) and C)

Question 11

According to the text,three women for every two men are enrolled in postsecondary education.This might lead to a reduction in the gender gap for all of the following reasons,EXCEPT that

Accepted Answer

A)   sex discrimination still may persist in traditionally male-dominated professions.
B)   graduation,not enrollment in college,will make the more appreciable difference.
C)   women may choose majors of study that won't result in high-paying jobs.
D)   a diminishing quantity supplied of college-educated males will shift the labor demand to the right.
E)   increased competition from new females in the workforce will drive down the wages in male-dominated jobs.F) A) and B)
G) B) and D)

Question 12

Felicia has an idea to provide a grocery home-delivery service in the developing country of Mongolia.What role would corruption play in the success of her business?

Accepted Answer

A)   It would make the market more competitive.
B)   It would encourage her to work harder.
C)   It would encourage her to invest in her business.
D)   It would discourage her about investing in her business.
E)   It would have no effect on the success of her business.F) A) and C)
G) A) and B)

Question 13

The movement of individuals and households from one income range to another is called

Accepted Answer

A)   income mobility.
B)   wealth mobility.
C)   in-kind transfers.
D)   the samaritan's dilemma.
E)   a compensating differential.F) B) and E)
G) D) and E)

Question 14

Late-night employees working in a 24-hour store often earn more than similar employees who work the day shift.What explains this difference in pay?

Accepted Answer

A)   life-cycle wage pattern
B)   human capital theory
C)   occupational crowding
D)   negative compensating differential
E)   positive compensating differentialF) C) and D)
G) C) and E)

Question 15

Does hiring more beautiful workers always reflect discrimination?

Accepted Answer

In some jobs,your appearance c...

Question 16

Besides overt sex discrimination,women also might earn less than men in the workplace because women

Accepted Answer

A)   have more human capital.
B)   tend to congregate in a narrow range of jobs that pay very little.
C)   have more years of work experience.
D)   work more hours per year.
E)   tend to receive an efficiency wage.F) A) and D)
G) A) and C)

Question 17

What role does corruption play in creating income inequality?

Accepted Answer

A)   It discourages mobility.
B)   It encourages human capital investments.
C)   It discourages winner-take-all situations.
D)   It discourages business investment.
E)   It discourages discrimination.F) B) and D)
G) A) and E)

Question 18

Government programs that subsidize housing or Internet access are an example of

Accepted Answer

A)   underground economies.
B)   in-kind transfers.
C)   disposable income.
D)   in-cash transfers.
E)   income supplements.F) A) and E)
G) B) and D)

Question 19

How does occupational crowding explain why women might earn less than men?

Accepted Answer

Occupational crowding suggests that cert...

Question 20

The Lorenz curve is especially helpful for seeing how income inequality

Accepted Answer

A)   varies in each country.
B)   has changed over time.
C)   reflects the different causational factors.
D)   always decreases in developed economies.
E)   can be resolved through public policy.F) A) and C)
G) D) and E)

Exam 15: Income,inequality,and Poverty

In terms of income mobility,why might Rashida be concerned about the fact that her 45-year-old uncle earns the minimum wage at a 30-hour-per-week job in a fast-food restaurant?

Correct AnswerverifiedHer uncle likely lacks the education and...View AnswerShow Answer

How has the samaritan's dilemma informed the creation of the earned income tax credit? Be sure to define the samaritan's dilemma in your answer.

Correct AnswerverifiedThe samaritan's dilemma occurs when an a...View AnswerShow Answer

The Lorenz curve is especially helpful for seeing how income inequality

Correct AnswerverifiedShow Answer

Income mobility represents the ________ of a worker to ________.

Correct AnswerverifiedShow Answer

How do government programs affect the distribution of income in the United States?

Correct AnswerverifiedGovernment programs are generally design...View AnswerShow Answer

Felicia has an idea to provide a grocery home-delivery service in the developing country of Mongolia.What role would corruption play in the success of her business?

Correct AnswerverifiedShow Answer

Does hiring more beautiful workers always reflect discrimination?

Correct AnswerverifiedIn some jobs,your appearance c...View AnswerShow Answer

Besides overt sex discrimination,women also might earn less than men in the workplace because women

Correct AnswerverifiedShow Answer

Which social welfare policy is most likely to produce unemployment?

Correct AnswerverifiedShow Answer

According to the text,in the time since the passage of the Equal Opportunity Act in 1964,the poverty rate has gone up,while economic output has roughly doubled.What is the most likely reason for this phenomenon?

Correct AnswerverifiedShow Answer

What role does corruption play in creating income inequality?

Correct AnswerverifiedShow Answer

Late-night employees working in a 24-hour store often earn more than similar employees who work the day shift.What explains this difference in pay?

Correct AnswerverifiedShow Answer

According to the text,three women for every two men are enrolled in postsecondary education.This might lead to a reduction in the gender gap for all of the following reasons,EXCEPT that

Correct AnswerverifiedShow Answer

How does occupational crowding explain why women might earn less than men?

Correct AnswerverifiedOccupational crowding suggests that cert...View AnswerShow Answer

The ________ is a comparison of the wealth in the top and bottom quintiles of an economy.

Correct AnswerverifiedShow Answer

Besides sex discrimination,women might earn less than men in the workplace because women

Correct AnswerverifiedShow Answer

As an Internet retailer,Luciana needs to find a location for her headquarters.If Luciana is primarily concerned with the cost of labor and wants to pay those she hires as little as possible,Luciana should establish her business in a(n)

Correct AnswerverifiedShow Answer

The movement of individuals and households from one income range to another is called

Correct AnswerverifiedShow Answer

The Gini index can be calculated by determining the areas above and below the Lorenz curve and using the expression ________.

Correct AnswerverifiedShow Answer

Government programs that subsidize housing or Internet access are an example of

Correct AnswerverifiedShow Answer

Correct Answer
verified
Her uncle likely lacks the education and...
View Answer

Correct Answer
verified
The samaritan's dilemma occurs when an a...
View Answer

Correct Answer
verified

Income mobility represents the of a worker to .

Correct Answer
verified

Correct Answer
verified
Government programs are generally design...
View Answer

Correct Answer
verified

Correct Answer
verified
In some jobs,your appearance c...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Occupational crowding suggests that cert...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified