Question 1

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) None of the above
F) A) and B)

Question 2

Based on U.S. income data from 2011, the bottom fifth of all families received approximately what percent of all income?

Accepted Answer

A)   48.9 percent
B)   21.3 percent
C)   8.6 percent
D)   3.8 percentE) A) and B)
F) B) and D)

Question 3

Over the past 50 years, the U.S. poverty rate was at its lowest level in

Accepted Answer

A)   1973.
B)   1980.
C)   1990.
D)   2008.E) B) and C)
F) C) and D)

Question 4

Which of the following pholitical philosophies would support redistribution of income that makes society fully egalitarian?

Accepted Answer

A)   Liberals, because they believe in the maximin criterion.
B)   Libertarians, because they believe in evaluating the process by which economic outcomes arise.
C)   Utilitarians, because they believe in diminishing marginal utility.
D)   None of the above would support completely egalitarian redistribution of income.E) B) and D)
F) B) and C)

Question 5

If the U.S. government determines that the cost of feeding an urban family of four is $7,500 per year, then the official poverty line for a family of that type is

Accepted Answer

A)   $7,500.
B)   $15,000.
C)   $22,500.
D)   $30,000.E) A) and B)
F) A) and C)

Question 6

Of the following countries, which has the most equal distribution of income? United States, Brazil, Mexico, China, Japan, Germany, United Kingdom, Russia

Accepted Answer

The answer of Of the following countries, which has the...

Question 7

The poverty rate is the percentage of the population that have a family income level below the

Accepted Answer

A)   income maintenance threshold.
B)   poverty line.
C)   bottom quintile of the income distribution.
D)   minimum wage.E) B) and D)
F) None of the above

Question 8

Explain the relationship between labor earnings and the distribution of income.

Accepted Answer

A person's earnings depend on the supply...

Question 9

In-kind transfers are politically popular because

Accepted Answer

A)   they provide high quality food and shelter.
B)   they provide cash.
C)   allow resale of food stamps for cash, if needed.
D)   the public believes that the aid is not going to support alcohol and drug addiction.E) A) and C)
F) A) and D)

Question 10

Which of the following programs to alleviate poverty would be most favored by philosopher Robert Nozick?

Accepted Answer

A)   a negative income tax
B)   an Earned Income Tax Credit (EIT
C)  
C)   an in-kind transfer program
D)   None of the programs would be favored by Nozick.E) All of the above
F) None of the above

Question 11

In the United States in 2011, the bottom fifth of the income distribution had incomes below $27,218.

Accepted Answer

A) True 
 B)False

Question 12

The elderly represent the largest demographic group in poverty.

Accepted Answer

A) True 
 B)False

Question 13

Scenario 20-6
Zooey is a single mother of two young children whose husband died in a tragic car accident. She earns $20,000 per year working as a cashier at a grocery store. The government uses a negative income tax system in which Taxes owed = (1/4 of income)  - $15,000.
-Refer to Scenario 20-6. How much does Zooey owe or receive from the government?

Accepted Answer

A)   She receives $10,000.
B)   She owes $10,000.
C)   She receives $15,000.
D)   She owes $5,000E) All of the above
F) C) and D)

Question 14

Income) -
a. What is the value for "a"?
b. A family with an income of $40,000 pays $5,000 in taxes, and a family with an income of $12,000 receives an income subsidy of $2,000.
b. What is the value for "b"?
c. What is the tax liability of a family with an income of $50,000?
d. At what level of income will a family neither pay taxes, nor receive an income subsidy?

Accepted Answer

a. 0.25 or...

Question 15

Which of the following is not correct?

Accepted Answer

A)   A negative income tax only applies to working people, so it encourages people to get full-time work.
B)   Supporters advocate the use of the Earned Income Tax Credit as a way to help the working poor.
C)   A negative income tax subsidizes the incomes of poor people.
D)   An advantage of a negative income tax is that it is not based on the number of children, so it does not provide incentives for unmarried women to have children.E) C) and D)
F) A) and B)

Question 16

Libertarians believe that the government should enforce individual rights to ensure that all people have the same opportunities to use their talents to achieve success.

Accepted Answer

A) True 
 B)False

Question 17

A family's ability to buy goods and services depends largely on its

Accepted Answer

A)   permanent income, which is its normal, or average, income.
B)   permanent income, which is the lowest annual income the family has received over a 10-year period.
C)   transitory income, which is the measure of income used by the government to analyze the distribution of income and the poverty rate.
D)   transitory income, which is its money income plus any in-kind transfers it receives.E) B) and C)
F) C) and D)

Question 18

Since about 1970 in the U.S.,

Accepted Answer

A)   decreases in the wages of unskilled workers, relative to skilled workers, have led to increased inequality in family incomes.
B)   increases in the wages of unskilled workers, relative to skilled workers, have led to increased equality in family incomes.
C)   inequality in family incomes has increased, despite increases in the wages of unskilled workers relative to skilled workers.
D)   inequality in family incomes has decreased, despite increases in the wages of skilled workers relative to unskilled workers.E) B) and C)
F) C) and D)

Question 19

Economists Cox and Alm compared the gap between rich and poor and found that the richest 20% was about 2 times better off than the poorest 20% when they compared what data?

Accepted Answer

consumptio...

Question 20

The United States has greater income disparity than

Accepted Answer

A)   Japan.
B)   India.
C)   South Africa.
D)   Both a and b are correct.E) A) and B)
F) None of the above

Exam 20: Income Inequality and Poverty

The United States has greater income disparity than

Correct Answer
verified

Which of the following pholitical philosophies would support redistribution of income that makes society fully egalitarian?

Correct Answer
verified

A family's ability to buy goods and services depends largely on its

Correct Answer
verified

In the United States in 2011, the bottom fifth of the income distribution had incomes below $27,218.

Correct Answer
verified

Economists Cox and Alm compared the gap between rich and poor and found that the richest 20% was about 2 times better off than the poorest 20% when they compared what data?

Correct Answer
verified
consumptio...
View Answer

Libertarians believe that the government should enforce individual rights to ensure that all people have the same opportunities to use their talents to achieve success.

Correct Answer
verified

The poverty rate is the percentage of the population that have a family income level below the

Correct Answer
verified

Since about 1970 in the U.S.,

Correct Answer
verified

In-kind transfers are politically popular because

Correct Answer
verified

Explain the relationship between labor earnings and the distribution of income.

Correct Answer
verified
A person's earnings depend on the supply...
View Answer

The elderly represent the largest demographic group in poverty.

Correct Answer
verified

Which of the following programs to alleviate poverty would be most favored by philosopher Robert Nozick?

Correct Answer
verified

Based on U.S. income data from 2011, the bottom fifth of all families received approximately what percent of all income?

Correct Answer
verified

If the U.S. government determines that the cost of feeding an urban family of four is $7,500 per year, then the official poverty line for a family of that type is

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified
a. 0.25 or...
View Answer

Over the past 50 years, the U.S. poverty rate was at its lowest level in

Correct Answer
verified

Of the following countries, which has the most equal distribution of income? United States, Brazil, Mexico, China, Japan, Germany, United Kingdom, Russia

Correct Answer
verified

Which of the following is not correct?

Correct Answer
verified

Exam 20: Income Inequality and Poverty

The United States has greater income disparity than

Correct AnswerverifiedShow Answer

Which of the following pholitical philosophies would support redistribution of income that makes society fully egalitarian?

Correct AnswerverifiedShow Answer

A family's ability to buy goods and services depends largely on its

Correct AnswerverifiedShow Answer

In the United States in 2011, the bottom fifth of the income distribution had incomes below $27,218.

Correct AnswerverifiedShow Answer

Economists Cox and Alm compared the gap between rich and poor and found that the richest 20% was about 2 times better off than the poorest 20% when they compared what data?

Correct Answerverifiedconsumptio...View AnswerShow Answer

Libertarians believe that the government should enforce individual rights to ensure that all people have the same opportunities to use their talents to achieve success.

Correct AnswerverifiedShow Answer

The poverty rate is the percentage of the population that have a family income level below the

Correct AnswerverifiedShow Answer

Since about 1970 in the U.S.,

Correct AnswerverifiedShow Answer

In-kind transfers are politically popular because

Correct AnswerverifiedShow Answer

Explain the relationship between labor earnings and the distribution of income.

Correct AnswerverifiedA person's earnings depend on the supply...View AnswerShow Answer

The elderly represent the largest demographic group in poverty.

Correct AnswerverifiedShow Answer

Which of the following programs to alleviate poverty would be most favored by philosopher Robert Nozick?

Correct AnswerverifiedShow Answer

Based on U.S. income data from 2011, the bottom fifth of all families received approximately what percent of all income?

Correct AnswerverifiedShow Answer

If the U.S. government determines that the cost of feeding an urban family of four is $7,500 per year, then the official poverty line for a family of that type is

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct Answerverifieda. 0.25 or...View AnswerShow Answer

Over the past 50 years, the U.S. poverty rate was at its lowest level in

Correct AnswerverifiedShow Answer

Of the following countries, which has the most equal distribution of income? United States, Brazil, Mexico, China, Japan, Germany, United Kingdom, Russia

Correct AnswerverifiedShow Answer

Which of the following is not correct?

Correct AnswerverifiedShow Answer

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consumptio...
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A person's earnings depend on the supply...
View Answer

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a. 0.25 or...
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