Question 1

Refer to the table. What percentage should be reported in blank C of column 3?

Accepted Answer

A)  6
B)  11
C)  35
D)  51E) A) and B)
F) A) and C)

Question 2

Universal Basic Income (UBI) , if implemented, would

Accepted Answer

A)  guarantee a job to every able-bodied citizen.
B)  dramatically expand spending in the existing welfare programs.
C)  guarantee a minimum monthly income to every citizen.
D)  be expected to greatly reduce the size of the Federal government's budget.E) A) and C)
F) A) and D)

Question 3

Which of the following is a cause of growing income inequality in the United States since 1980?

Accepted Answer

A)  exporting to other countries by major U.S. industries
B)  industrial restructuring from services to goods production
C)  a widening wage gap between skilled and unskilled workers
D)  an increase in the progressivity of the federal tax systemE) A) and B)
F) None of the above

Question 4

The U.S. income-maintenance program consists of two kinds of programs. They are

Accepted Answer

A)  the minimum wage law and Social Security.
B)  antidiscrimination law and education and training programs.
C)  social insurance and public assistance programs.
D)  progressive income taxes and transfer payments.E) None of the above
F) C) and D)

Question 5

Suppose Rita obtains 10 units of utility from the last dollar of income received by her, and Joseph obtains 6 units of utility from the last dollar of his income. Assume both Joseph and Rita have the same capacity to derive utility from income. Those who favor an equal distribution of income would

Accepted Answer

A)  advocate redistributing income from Joseph to Rita.
B)  advocate redistributing income from Rita to Joseph.
C)  be content with this distribution of income between Rita and Joseph.
D)  argue that any redistribution of income between them would increase total utility.E) C) and D)
F) B) and D)

Question 6

The incidence of poverty is very high among the elderly (65 years or older).

Accepted Answer

A) True 
 B)False

Question 7

A major difference between social insurance and welfare is that social insurance

Accepted Answer

A)  exclusively involves older Americans, whereas welfare is confined mainly to mothers with young children.
B)  forces recipients to demonstrate need, while welfare does not.
C)  is normally financed by earmarked payroll taxes, while welfare is financed out of general tax revenues.
D)  provides cash transfers, while welfare does not.E) A) and B)
F) A) and C)

Question 8

Refer to the diagram, where curves (a) through (e) are for five different countries. The Gini ratio is lowest in country

Accepted Answer

A)  a.
B)  b.
C)  c.
D)  e.E) C) and D)
F) All of the above

Question 9

The U.S. poverty rate for the elderly (65 and over)is higher than for the general population.

Accepted Answer

A) True 
 B)False

Question 10

Since 1980, the distribution of household income in the United States has

Accepted Answer

A)  moved toward greater inequality.
B)  moved toward greater equality.
C)  remained about the same.
D)  fluctuated considerably.E) B) and C)
F) A) and C)

Question 11

If discrimination based on gender and race was eliminated, we would expect the

Accepted Answer

A)  personal distribution of income to become less equal.
B)  personal distribution of income to become more equal.
C)  personal distribution of income to be unaffected.
D)  functional distribution of income to change in favor of profits and interest.E) None of the above
F) A) and D)

Question 12

The Supplemental Nutrition Assistance Program (formerly the food-stamp program)mostly pays out cash-vouchers to eligible households.

Accepted Answer

A) True 
 B)False

Question 13

In 2017, the poverty line for a family of four was about

Accepted Answer

A)  $12,488.
B)  $30,453.
C)  $24,858.
D)  $32,753.E) All of the above
F) None of the above

Question 14

The lowest quintile of households in the income distribution (as of 2017) receives about

Accepted Answer

A)  2.4 percent of the total income.
B)  3.1 percent of the total income.
C)  8.2 percent of the total income.
D)  10 percent of the total income.E) B) and C)
F) A) and B)

Question 15

Assume that there is a supply and demand market for nonpreferred workers. If prejudice against these workers among employers increases, then there will be a(n)

Accepted Answer

A)  increased supply of these workers, a rise in their wage rate, and a decrease in their employment.
B)  increased demand for these workers, a rise in their wage rate, and an increase in their employment.
C)  decreased supply of these workers, a fall in their wage rate, and a decrease in their employment.
D)  decreased demand for these workers, a fall in their wage rate, and a decrease in their employment.E) B) and C)
F) C) and D)

Question 16

When the occupational choices of women or minorities are restricted, this results in

Accepted Answer

A)  lower wages for these groups, but has no effect on the efficient allocation of labor resources.
B)  lower wages for these groups, but more efficient allocation of labor resources.
C)  lower wages for these groups and less efficient allocation of labor resources.
D)  higher wages for these groups and more efficient allocation of labor resources.E) A) and B)
F) A) and D)

Question 17

Which one of the following is not a cash transfer program?

Accepted Answer

A)  TANF
B)  Supplemental Security Income (SSI) 
C)  low-rent public housing
D)  Social SecurityE) A) and B)
F) None of the above

Question 18

As applied to gender discrimination, the crowding model of occupational segregation

Accepted Answer

A)  helps explain why women earn more than men.
B)  predicts that men's wages would fall and women's wages would rise if occupational segregation was eliminated.
C)  predicts that domestic output would decline if occupational segregation was ended.
D)  predicts that competition will eventually totally end discrimination.E) B) and C)
F) None of the above

Question 19

Social insurance is distinguished from public assistance, or welfare, by the fact that

Accepted Answer

A)  all social insurance benefits are paid in cash, while all public assistance benefits are paid in kind (food, housing, medical care) .
B)  an individual acquires a right to social insurance benefits by meeting objective eligibility criteria, while public assistance benefits are determined according to individual need.
C)  the total amount paid in benefits is much larger in the public assistance programs than in the social insurance programs.
D)  payroll taxes are used to finance public assistance programs, while general revenues are used to finance social insurance programs.E) B) and D)
F) A) and D)

Question 20

The exercise of market power by suppliers in resource markets tends to

Accepted Answer

A)  reduce income inequality, ensuring that all workers receive fair wages.
B)  have little impact on the distribution of income.
C)  increase income inequality by raising incomes of those able to "rig the market."
D)  increase income inequality but is offset by the exercise of market power in product markets.E) B) and D)
F) A) and C)

Exam 23: Income Inequality, Poverty, and Discrimination

If discrimination based on gender and race was eliminated, we would expect the

Correct AnswerverifiedShow Answer

Assume that there is a supply and demand market for nonpreferred workers. If prejudice against these workers among employers increases, then there will be a(n)

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The exercise of market power by suppliers in resource markets tends to

Correct AnswerverifiedShow Answer

The lowest quintile of households in the income distribution (as of 2017) receives about

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Universal Basic Income (UBI) , if implemented, would

Correct AnswerverifiedShow Answer

In 2017, the poverty line for a family of four was about

Correct AnswerverifiedShow Answer

Since 1980, the distribution of household income in the United States has

Correct AnswerverifiedShow Answer

Refer to the table. What percentage should be reported in blank C of column 3?

Correct AnswerverifiedShow Answer

Suppose Rita obtains 10 units of utility from the last dollar of income received by her, and Joseph obtains 6 units of utility from the last dollar of his income. Assume both Joseph and Rita have the same capacity to derive utility from income. Those who favor an equal distribution of income would

Correct AnswerverifiedShow Answer

The U.S. income-maintenance program consists of two kinds of programs. They are

Correct AnswerverifiedShow Answer

Which one of the following is not a cash transfer program?

Correct AnswerverifiedShow Answer

The incidence of poverty is very high among the elderly (65 years or older).

Correct AnswerverifiedShow Answer

When the occupational choices of women or minorities are restricted, this results in

Correct AnswerverifiedShow Answer

A major difference between social insurance and welfare is that social insurance

Correct AnswerverifiedShow Answer

The U.S. poverty rate for the elderly (65 and over)is higher than for the general population.

Correct AnswerverifiedShow Answer

Which of the following is a cause of growing income inequality in the United States since 1980?

Correct AnswerverifiedShow Answer

Social insurance is distinguished from public assistance, or welfare, by the fact that

Correct AnswerverifiedShow Answer

As applied to gender discrimination, the crowding model of occupational segregation

Correct AnswerverifiedShow Answer

Refer to the diagram, where curves (a) through (e) are for five different countries. The Gini ratio is lowest in country

Correct AnswerverifiedShow Answer

The Supplemental Nutrition Assistance Program (formerly the food-stamp program)mostly pays out cash-vouchers to eligible households.

Correct AnswerverifiedShow Answer

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