Question 1

The normal life cycle pattern of income

Accepted Answer

A)   contributes to more inequality in the distribution of annual income and to more inequality in living standards.
B)   contributes to more inequality in the distribution of annual income, but it does not necessarily contribute to more inequality in living standards.
C)   contributes to less inequality in the distribution of annual income and to less inequality in living standards.
D)   has no effect on either the distribution of annual income or on living standards.E) None of the above
F) A) and B)

Question 2

Which of the following statements is characteristic of utilitarianism?

Accepted Answer

A)   An extra dollar of income provides higher marginal utility to a poor person than to a rich person.
B)   Social policies should be created behind a "veil of ignorance."
C)   Society should strive to maximize the utility of its wealthiest member.
D)   Equality of opportunity is more important than equality of incomes.E) A) and D)
F) All of the above

Question 3

Among all countries in the world, the United States has the most income inequality.

Accepted Answer

A) True 
 B)False

Question 4

Approximately what fraction of total income in the US economy comes from labor earnings?

Accepted Answer

The answer of Approximately what fraction of total income in...

Question 5

Which of the following statements is correct?

Accepted Answer

A)   Followers of the liberalism political philosophy believe that society should maximize the total of individual utilities.
B)   The poverty line is adjusted for regional differences in the costs of raising children.
C)   One advantage to the Earned Income Tax Credit (EIT
C)   is that it benefits the working poor.
D)   Libertarians pursue policies to redistribute income from the rich to the poor.E) A) and B)
F) A) and C)

Question 6

For a typical worker, her income will be lower when she is younger, peak around age 50, and decrease drastically when she retires. This pattern of changes in income for a typical worker is called

Accepted Answer

A)   the life cycle.
B)   permanent income.
C)   transitory income.
D)   in-kind transfers.E) B) and C)
F) None of the above

Question 7

About four out of five millionaires in the United States earned their money rather than inherited it.

Accepted Answer

A) True 
 B)False

Question 8

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) A) and C)
F) All of the above

Question 9

Table 20-14
Income Inequality in the United States
The values in the table reflect the percentages of pre-tax-and transfer income.  Source: US Census Bureau
-Refer to Table 20-14. In percentage terms, how much less income did the bottom 40% of families have in 2010 than in 1980?

Accepted Answer

The answer of Table 20-14
Income Inequality in the United States
The...

Question 10

Temporary Assistance for Needy Families (TANF) and Supplemental Security Income (SSI) are examples of .

Accepted Answer

The answer of Temporary Assistance for Needy Families (TANF) and...

Question 11

In-kind transfers are transfers to the poor

Accepted Answer

A)   in the form of goods and services rather than cash.
B)   in the form of goods, services, and cash.
C)   from private charitable organizations only.
D)   from the federal government only.E) B) and C)
F) All of the above

Question 12

Which political philosophy focuses on the process of determining the distribution of income rather than on the outcome?

Accepted Answer

A)   utilitarianism
B)   liberalism
C)   libertarianism
D)   welfarismE) C) and D)
F) B) and D)

Question 13

Aniella believes that the demand for unskilled labor is relatively inelastic. Carmella believes that the demand for unskilled labor is relatively elastic. Which is an advocate of minimum-wage laws?

Accepted Answer

The answer of Aniella believes that the demand for unskilled...

Question 14

Table 20-11
Poverty Thresholds in 2011, by Size of Family and Number of Related Children Under 18 Years [Dollars]  Source: U. S. Bureau of the Census, Current Population Survey.
-Refer to Table 20-11. What is the poverty line for a family of six with three children?

Accepted Answer

A)   $29,494
B)   $31,005
C)   $32,181
D)   $26,844E) C) and D)
F) A) and B)

Question 15

About half of black and Hispanic children in female-headed households live in poverty.

Accepted Answer

A) True 
 B)False

Question 16

The study by economists Cox and Alm found that the 2006 pre-tax income of the richest fifth of U.S. households is

Accepted Answer

A)   5 times the pre-tax income of the poorest fifth.
B)   10 times the pre-tax income of the poorest fifth.
C)   15 times the pre-tax income of the poorest fifth.
D)   20 times the pre-tax income of the poorest fifth.E) C) and D)
F) A) and B)

Question 17

Which political philosophy argues that the government should choose policies deemed just, as evaluated by an impartial observer?

Accepted Answer

The answer of Which political philosophy argues that the government...

Question 18

Of the following groups, which group is most likely to live in poverty - children, elderly, married-couple families, female household with no spouse present?

Accepted Answer

female hou...

Question 19

When the government enacts policies to make the distribution of income more equitable, it distorts incentives, alters behavior, and makes the allocation of resources less efficient.

Accepted Answer

A) True 
 B)False

Question 20

The statement that "measures of the distribution of income are based on money income" relates to which problem in measuring inequality?

Accepted Answer

A)   in-kind transfers
B)   economic life cycle
C)   transitory versus permanent income
D)   economic mobilityE) A) and B)
F) A) and C)

Exam 20: Income Inequality and Poverty

Which of the following statements is characteristic of utilitarianism?

Correct AnswerverifiedShow Answer

Table 20-14 Income Inequality in the United States The values in the table reflect the percentages of pre-tax-and transfer income. Source: US Census Bureau -Refer to Table 20-14. In percentage terms, how much less income did the bottom 40% of families have in 2010 than in 1980?

Correct AnswerverifiedShow Answer

Approximately what fraction of total income in the US economy comes from labor earnings?

Correct AnswerverifiedShow Answer

For a typical worker, her income will be lower when she is younger, peak around age 50, and decrease drastically when she retires. This pattern of changes in income for a typical worker is called

Correct AnswerverifiedShow Answer

Aniella believes that the demand for unskilled labor is relatively inelastic. Carmella believes that the demand for unskilled labor is relatively elastic. Which is an advocate of minimum-wage laws?

Correct AnswerverifiedShow Answer

About four out of five millionaires in the United States earned their money rather than inherited it.

Correct AnswerverifiedShow Answer

Which of the following statements is correct?

Correct AnswerverifiedShow Answer

The statement that "measures of the distribution of income are based on money income" relates to which problem in measuring inequality?

Correct AnswerverifiedShow Answer

Table 20-11 Poverty Thresholds in 2011, by Size of Family and Number of Related Children Under 18 Years [Dollars] Source: U. S. Bureau of the Census, Current Population Survey. -Refer to Table 20-11. What is the poverty line for a family of six with three children?

Correct AnswerverifiedShow Answer

Among all countries in the world, the United States has the most income inequality.

Correct AnswerverifiedShow Answer

The study by economists Cox and Alm found that the 2006 pre-tax income of the richest fifth of U.S. households is

Correct AnswerverifiedShow Answer

Which political philosophy focuses on the process of determining the distribution of income rather than on the outcome?

Correct AnswerverifiedShow Answer

In-kind transfers are transfers to the poor

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The normal life cycle pattern of income

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Which political philosophy argues that the government should choose policies deemed just, as evaluated by an impartial observer?

Correct AnswerverifiedShow Answer

When the government enacts policies to make the distribution of income more equitable, it distorts incentives, alters behavior, and makes the allocation of resources less efficient.

Correct AnswerverifiedShow Answer

If income were equally distributed among households,

Correct AnswerverifiedShow Answer

About half of black and Hispanic children in female-headed households live in poverty.

Correct AnswerverifiedShow Answer

Of the following groups, which group is most likely to live in poverty - children, elderly, married-couple families, female household with no spouse present?

Correct Answerverifiedfemale hou...View AnswerShow Answer

Temporary Assistance for Needy Families (TANF) and Supplemental Security Income (SSI) are examples of .

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female hou...
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