Question 1

Briefly describe the three prominent schools of thought in political philosophy.Identify one of the most well-known philosophers in each school.

Accepted Answer

According to utilitarianism,the governme...

Question 2

Measuring poverty using an absolute income scale like the poverty line can be misleading because

Accepted Answer

A)  income measures do not include the value of in-kind transfers.
B)  money is more highly valued by the rich than by the poor.
C)  the poor are not likely to participate in the labor market.
D)  income measures are not adjusted for the effects of labor-market discrimination.E) None of the above
F) All of the above

Question 3

If a government could successfully achieve the maximin criterion,each member of society would have an equal income.

Accepted Answer

A) True 
 B)False

Question 4

Of the four countries below,the country that has the most income equality is

Accepted Answer

A)  Japan.
B)  Brazil.
C)  South Africa.
D)  the United States.E) None of the above
F) A) and D)

Question 5

Many economists believe that a family bases its spending decisions on its permanent,or average,income rather than on transitory income.

Accepted Answer

A) True 
 B)False

Question 6

In-kind transfers are

Accepted Answer

A)  obtained only by those who have political connections.
B)  provided only by the government.
C)  non-monetary items given to the poor.
D)  obtained primarily through private charities.E) B) and D)
F) A) and B)

Question 7

Figure 20-5 o,it is likely to A) increase employment to a level above Qo. B) reduce employment to a level below Qo. C) provide more income to the working poor than they collectively received before the minimum wage was set. D) have no effect on employment." class="answers-bank-image d-inline" rel="preload" >

-Refer to Figure 20-5.If the government imposes a minimum wage above Wo,it is likely to

Accepted Answer

A)  increase employment to a level above Qo.
B)  reduce employment to a level below Qo.
C)  provide more income to the working poor than they collectively received before the minimum wage was set.
D)  have no effect on employment.E) B) and C)
F) B) and D)

Question 8

According to libertarians,the government should redistribute income from rich individuals to poor individuals to achieve a more equal distribution of income.

Accepted Answer

A) True 
 B)False

Question 9

Critics argue that a disadvantage of minimum-wage laws is that they do not effectively target the working poor because many minimum-wage workers are the teenage children of middle-income families.

Accepted Answer

A) True 
 B)False

Question 10

Standard measurements of the degree of income inequality take both money income and in-kind transfers into account.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following statements is correct?

Accepted Answer

A)  The poverty line is a relative standard.
B)  More families are pushed above the poverty line as economic growth pushes the entire income distribution upward.
C)  Increasing income inequality reduces poverty.
D)  Economic growth,by definition,affects all families equally.E) All of the above
F) A) and B)

Question 12

The best government policy to reduce poverty is

Accepted Answer

A)  a minimum wage law because the resulting unemployment is small in comparison to the benefits to people it helps.
B)  an expanded welfare program because people must have an additional "need" such as small children or a disability.
C)  an in-kind transfer because it ensures that the poor receive what they need most such as food or shelter.
D)  not obvious.Government programs to reduce poverty have many advantages but also many disadvantages.E) A) and D)
F) All of the above

Question 13

Would the maximin criterion achieve perfect income equality?

Accepted Answer

A)  Yes.There would be no way to reallocate resources to raise the utility of the poor.
B)  Yes.The maximin criterion would eliminate poverty.
C)  No.It is impossible for complete equality to benefit the worst-off people in society.
D)  No.Complete equality would reduce incentives to work,which would reduce total income,which would reduce the incomes of the worst-off people in society.E) B) and D)
F) A) and D)

Question 14

Unemployment insurance benefits is a type of

Accepted Answer

A)  in-kind transfer.
B)  negative income tax payment.
C)  property income.
D)  welfare payment.E) B) and D)
F) None of the above

Question 15

The maximin criterion is the idea that the government should aim to maximize the well-being of the worst-off person in society.

Accepted Answer

A) True 
 B)False

Question 16

Utilitarianism is

Accepted Answer

A)  a liberal religion that focuses on individual rights.
B)  a political philosophy that believes the government should choose policies deemed to be just by an impartial observer.
C)  a political philosophy that believes the government should not redistribute income.
D)  a political philosophy that believes the government should choose policies to maximize the total utility of society.E) All of the above
F) A) and B)

Question 17

A utilitarian government has to balance the gains from greater income equality against the losses from distorted work incentives.To maximize total utility,therefore,the government

Accepted Answer

A)  would never tax labor income.
B)  must always achieve a fully egalitarian society.
C)  enacts policies that only benefit the middle class.
D)  stops short of a fully egalitarian society.E) A) and B)
F) A) and C)

Question 18

Economists who support minimum-wage legislation are likely to believe that the

Accepted Answer

A)  demand for unskilled labor is relatively inelastic.
B)  demand for unskilled labor is relatively elastic.
C)  supply of unskilled labor is relatively elastic.
D)  supply of unskilled labor is relatively inelastic.E) C) and D)
F) B) and D)

Question 19

Governments enact policies to

Accepted Answer

A)  make the distribution of income more efficient.
B)  make the distribution of income more equal.
C)  maximize the use of the welfare system.
D)  minimize the use of in-kind transfers.E) A) and B)
F) B) and D)

Question 20

The utilitarian justification for redistributing income is based on the assumption of diminishing marginal utility.

Accepted Answer

A) True 
 B)False

Exam 20: Income Inequality and Poverty

According to libertarians,the government should redistribute income from rich individuals to poor individuals to achieve a more equal distribution of income.

Correct AnswerverifiedShow Answer

Would the maximin criterion achieve perfect income equality?

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Governments enact policies to

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If a government could successfully achieve the maximin criterion,each member of society would have an equal income.

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Of the four countries below,the country that has the most income equality is

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Economists who support minimum-wage legislation are likely to believe that the

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Many economists believe that a family bases its spending decisions on its permanent,or average,income rather than on transitory income.

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The maximin criterion is the idea that the government should aim to maximize the well-being of the worst-off person in society.

Correct AnswerverifiedShow Answer

Measuring poverty using an absolute income scale like the poverty line can be misleading because

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A utilitarian government has to balance the gains from greater income equality against the losses from distorted work incentives.To maximize total utility,therefore,the government

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In-kind transfers are

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Briefly describe the three prominent schools of thought in political philosophy.Identify one of the most well-known philosophers in each school.

Correct AnswerverifiedAccording to utilitarianism,the governme...View AnswerShow Answer

Figure 20-5 -Refer to Figure 20-5.If the government imposes a minimum wage above Wo,it is likely to

Correct AnswerverifiedShow Answer

Which of the following statements is correct?

Correct AnswerverifiedShow Answer

Standard measurements of the degree of income inequality take both money income and in-kind transfers into account.

Correct AnswerverifiedShow Answer

The utilitarian justification for redistributing income is based on the assumption of diminishing marginal utility.

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Utilitarianism is

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Unemployment insurance benefits is a type of

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Critics argue that a disadvantage of minimum-wage laws is that they do not effectively target the working poor because many minimum-wage workers are the teenage children of middle-income families.

Correct AnswerverifiedShow Answer

The best government policy to reduce poverty is

Correct AnswerverifiedShow Answer

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According to utilitarianism,the governme...
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Figure 20-5 -Refer to Figure 20-5.If the government imposes a minimum wage above W_o,it is likely to

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