Question 1

Which of the following is not a question that economists try to answer when measuring the distribution of income?

Accepted Answer

A)   How many people live in poverty?
B)   How often and how large are people's raises?
C)   How often do people move among income classes?
D)   What problems arise in measuring the amount of inequality?E) B) and C)
F) None of the above

Question 2

The founders of utilitarianism include

Accepted Answer

A)   A.C.Pigou and John Maynard Keynes.
B)   Jeremy Bentham and John Stuart Mill.
C)   Augustin Cournot and Jean B.Say.
D)   A.Kondratieff and Thomas Malthus.E) All of the above
F) None of the above

Question 3

The poverty line is set by the government so that 10 percent of all families fall below that line and are thereby classified as "poor."

Accepted Answer

A) True 
 B)False

Question 4

In the U.S.economy,labor earnings make up about

Accepted Answer

A)   one-half of total income.
B)   two-thirds of total income.
C)   three-fourths of total income.
D)   nine-tenths of total income.E) A) and C)
F) All of the above

Question 5

The maximin criterion is attributed to which political philosophy?

Accepted Answer

A)   Utilitarianism.
B)   Liberalism.
C)   Libertarianism.
D)   Repubicanism.E) A) and D)
F) None of the above

Question 6

The poverty rate is an absolute level of income set by the federal government for each family size below which a family is deemed to be in poverty.

Accepted Answer

A) True 
 B)False

Question 7

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) A) and D)
F) A) and B)

Question 8

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) A) and D)
F) B) and C)

Question 9

When comparing the percentage of income (or expenditure) of the lowest and highest 20 percent of the population,

Accepted Answer

A)   South Africa has a more equal income distribution than the United States.
B)   South Africa has a more equal income distribution than Japan.
C)   Japan has a more equal income distribution than the United States.
D)   Mexico has a more equal income distribution than Canada.E) A) and B)
F) A) and C)

Question 10

If income were equally distributed among households,

Accepted Answer

A)   each household's relative share of income would increase.
B)   each household's relative share of income would decrease.
C)   the top fifth of households would have 50 percent of the income.
D)   50 percent of the households would receive exactly 50 percent of the income.E) None of the above
F) A) and B)

Question 11

Table 20-3
The Distribution of Income in Hapland
 
-Refer to Table 20-3.According to the table,what percent of families in Hapland have income levels above $60,000?

Accepted Answer

A)   80 percent
B)   60 percent
C)   50 percent
D)   40 percentE) All of the above
F) C) and D)

Question 12

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 13

The political philosophy that views the redistribution of income as a form of social insurance is

Accepted Answer

A)   Utilitarianism.
B)   Liberalism.
C)   Libertarianism.
D)   Welfarism.E) B) and C)
F) A) and D)

Question 14

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)   2005E) A) and B)
F) A) and C)

Question 15

Education is the most important factor explaining reductions in child labor in Vietnam.

Accepted Answer

A) True 
 B)False

Question 16

Figure 20-2
Poverty Rates by Age 
-Refer to Figure 20-2.In 2001,the percent of children under age 18 in poverty is

Accepted Answer

A)   higher than both the percentage of adults aged 18 to 64 and the percentage of elderly aged 65 years and over in poverty.
B)   higher than the percentage of adults aged 18 to 64 but is lower than the percentage of elderly aged 65 years and over in poverty.
C)   lower than both the percentage of adults aged18 to 64 and the percentage of elderly aged 65 years and over in poverty.
D)   lower than the percentage of adults aged 18 to 64 but is higher than the percentage of elderly aged 65 years and over in poverty.E) B) and D)
F) B) and C)

Question 17

The United States has less income inequality than

Accepted Answer

A)   Japan.
B)   Canada.
C)   Germany.
D)   South Africa.E) All of the above
F) None of the above

Question 18

Which of the following statements is correct regarding the international phenomenon of child labor?

Accepted Answer

A)   The highest percentage of child laborers work in factories.
B)   Policies that restrict the opportunities for children to work are likely to punish the poorest families.
C)   The most significant reason why children work is that their parents do not understand the benefits of childhood education.
D)   When a family experiences an increase in income,the children are more likely to work longer hours,especially if they are working in agriculture.E) None of the above
F) B) and C)

Question 19

The rule for redistribution proposed by John Rawls in his book A Theory of Justice is called the

Accepted Answer

A)   "optimal ignorance" rule.
B)   libertarian justice rule.
C)   maximin criterion.
D)   egalitarian criterion.E) B) and D)
F) A) and D)

Question 20

In 2005 the top 5 percent of income earners accounted for over 50% of all income received by United States' families.

Accepted Answer

A) True 
 B)False

Exam 20: Income Inequality and Poverty

The poverty line is set by the government so that 10 percent of all families fall below that line and are thereby classified as "poor."

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Table 20-3 The Distribution of Income in Hapland -Refer to Table 20-3.According to the table,what percent of families in Hapland have income levels above $60,000?

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The poverty rate is an absolute level of income set by the federal government for each family size below which a family is deemed to be in poverty.

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Figure 20-2 Poverty Rates by Age -Refer to Figure 20-2.In 2001,the percent of children under age 18 in poverty is

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Education is the most important factor explaining reductions in child labor in Vietnam.

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In the U.S.economy,labor earnings make up about

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The maximin criterion is attributed to which political philosophy?

Correct AnswerverifiedShow Answer

The political philosophy that views the redistribution of income as a form of social insurance is

Correct AnswerverifiedShow Answer

When comparing the percentage of income (or expenditure) of the lowest and highest 20 percent of the population,

Correct AnswerverifiedShow Answer

In 2005 the top 5 percent of income earners accounted for over 50% of all income received by United States' families.

Correct AnswerverifiedShow Answer

The United States has less income inequality than

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following statements is correct regarding the international phenomenon of child labor?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The rule for redistribution proposed by John Rawls in his book A Theory of Justice is called the

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The founders of utilitarianism include

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Which of the following is not a question that economists try to answer when measuring the distribution of income?

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If income were equally distributed among households,

Correct AnswerverifiedShow Answer

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