QUESTION 16
A person is more likely to be poor if he or she is
African-American or Hispanic rather than white.
a member of a male-headed family rather than a female-headed family.
old rather than young.
all of the above
1 points
QUESTION 17
If the Gini coefficient is zero, there is
relative income equality.
complete income inequality.
complete income equality.
relative income inequality.
none of the above
1 points
QUESTION 18
Which of the following statements is true?
The people that make up the top 5 percent of all income earners are all millionaires.
In 2009, the lowest 20 percent of all income earners earned less than 5 percent of the total money income.
The income distribution in the United States is completely equal.
Between 1967 and 2009, the income distribution in the United States became more equal.
1 points
QUESTION 19
To an economist, wage discrimination exists when
individuals of equal marginal revenue products are paid different wage rates.
people of different ethnic backgrounds are treated differently by employers.
women are paid different wage rates than men.
African-Americans are paid different wage rates than whites.
b, c, and d
1 points
QUESTION 20
In-kind transfer payments are transfer payments that are paid in
cash.
a specific good or service.
stocks and bonds.
a and b
all of the above
QUESTION 16
A person is more likely to be poor if he or she is
| African-American or Hispanic rather than white. | ||
| a member of a male-headed family rather than a female-headed family. | ||
| old rather than young. | ||
| all of the above |
1 points
QUESTION 17
If the Gini coefficient is zero, there is
| relative income equality. | ||
| complete income inequality. | ||
| complete income equality. | ||
| relative income inequality. | ||
| none of the above |
1 points
QUESTION 18
Which of the following statements is true?
| The people that make up the top 5 percent of all income earners are all millionaires. | ||
| In 2009, the lowest 20 percent of all income earners earned less than 5 percent of the total money income. | ||
| The income distribution in the United States is completely equal. | ||
| Between 1967 and 2009, the income distribution in the United States became more equal. |
1 points
QUESTION 19
To an economist, wage discrimination exists when
| individuals of equal marginal revenue products are paid different wage rates. | ||
| people of different ethnic backgrounds are treated differently by employers. | ||
| women are paid different wage rates than men. | ||
| African-Americans are paid different wage rates than whites. | ||
| b, c, and d |
1 points
QUESTION 20
In-kind transfer payments are transfer payments that are paid in
| cash. | ||
| a specific good or service. | ||
| stocks and bonds. | ||
| a and b | ||
| all of the above |
Related textbook solutions
Related questions
|
Person |
Judy |
Sandy |
Dee |
Shawntae |
Martha |
|
Income |
$40,000 |
$75,000 |
$85,000 |
$35,000 |
$110,000 |
The above table lists the incomes for the 5 people who live on the remote island nation of Richland.
1. Refer to Table 21.1. If Martha's income doubled to $220,000 while the incomes of the other four residents did not change, what would happen to the original median income onâ Richlandia?
A.It would increase by $22,000.
B.It would increase by $44,000.
C.It would not change.
D.It would double.
2.When we compare shares of income earned by U.S. households over the past 40 years, which of the following statements about the distribution of income isâ true?
A.The percentage of total income represented by each quintile has decreased.
B.Lower income households gained at the expense of higher-income households.
C.The largest gain in income percentage is in the top 5% of households.
D.The percentage of total income represented by each quintile has increased.
3.From 1970 to 2012, the Gini coefficient in the United States has
A.dramatically decreased.
B.remained is relatively unchanged.
C.steadily increased.
D.more than doubled.
4.Income distribution in the United States over the past 40 years has become more equal.
True
False
5.Income inequality in the United States has increased in part due to technological change. How does technological change contribute to incomeâ inequality?
A.It is responsible for a majority of new products on the market, and these products are only affordable to higher-income households.
B.It reduces the cost of producing goods and therefore lowers the value of labor services.
C.It allows manufacturers to produce products with lessâ labor, and this reduction in the demand for labor lowers wages at all skill levels.
D.It has created many higher-income jobs for skilled and trainedâ workers, leaving the income of less-skilled workers relatively unchanged by comparison.
6.Income inequality in the United States has increased in part due to globalization. How does globalization contribute to incomeâinequality?
A.It allows domestic firms to hire low skilled workers anywhere in the world, putting U.S. workers in competition with foreign workers. This has caused the wages of low skilled workers to fall relative to the wages of other workers.
B.It increases the demand for a wide variety of products which in turn increases prices beyond the reach of average income
households.
C.It allows producers to exploit workers and reduce the wages they are willing to pay those workers.
D.It reduces the cost of producing goods and therefore lowers the value of labor services.
7.Rachel, a large pineapple producer in Hawaii, lobbies Congress to limit imports of pineapples to be able to sell her pineapples at a higher price and greatly increase her income. This possible source of income inequality is due to
A.technology changes.
B.rent seeking.
C.globalization.
D.productivity differences.
8.If growing income inequality results from changes in technology that, as a whole, make society better off, this will
A.decrease the size of the economic pie because of income inequality.
B.increase the size of the economic pie.
C.not change the size of the economic pie because the positive technology changes will be offset by the increases in income inequality.
D.result incomplete income inequality as technology continues to change in the future.
9.The belief that having more of something makes you happier but in successively smaller increments is called
A.utilitarianism.
B.diminishing marginal utility.
C.the benefits received principle.
D.transcendentalism.
10.The results of a survey conducted by Dan Ariely and Michael Norton found that Americans
A.show absolutely no preference for the amount of equality in wealth distribution in the nation.
B.have a preference for much less equality in wealth distribution than currently exists.
C.have a preference for roughly the amount of equality in wealth distribution that currently exists.
D.have a preference for much greater equality in wealth distribution than currently exists.
11.In the United States, the highest quintile of income earners contribute ________ of all federal tax dollars received, and the lowest quintile of income earners contribute ________ of all federal tax dollars received
A. 24%; 1.5%
B. 20%; 20%
C. 68.8%; 0.4%
D. 29.4%; 11.5%
12.The question "Is the U.S tax system disproportionate enough?" is a ________ question, and the question "How would higher taxes make the rich behave?" is a ________ question.
A. normative; positive
B. positive; normative
C. positive; positive
D. normative; normative
