Question 1

In the diagram, the elimination of discrimination is best represented by

Accepted Answer

A)  a move from C to E.
B)  an inward shift of the production possibilities curve.
C)  a move from A to D.
D)  a move from E to C.

Question 2

The equality-efficiency trade-off refers to

Accepted Answer

A)  the conflict between risk averters and risk takers.
B)  the willingness of Congress to abandon existing welfare programs in favor of a comprehensive plan to increase education and training for low-income persons.
C)  possible conflicts between the goals of economic efficiency and greater income equality.
D)  the difference between the goals of income equality and equality of economic opportunity.

Question 3

The average household income in the United States in 2017 was closest to

Accepted Answer

A)  $35,000.
B)  $50,000.
C)  $60,000.
D)  $100,000.

Question 4

All social insurance programs are welfare or public charity programs.

Accepted Answer

A) True 
 B)False

Question 5

Entitlement programs include

Accepted Answer

A)  welfare programs only.
B)  social insurance programs only.
C)  both public assistance programs and social insurance programs.
D)  welfare programs and public assistance programs.

Question 6

In 2017, the percentage of the total U.S. population that lived in poverty was approximately

Accepted Answer

A)  5 percent.
B)  10 percent.
C)  12 percent.
D)  20 percent.

Question 7

Greater income equality that is achieved through the redistribution of income is thought to

Accepted Answer

A)  stimulate innovation and entrepreneurship.
B)  promote economic efficiency in the economy.
C)  increase incentives to work, save, and invest in the economy.
D)  come at the opportunity cost of reduced production and income.

Question 8

Refer to the table. What percentage should be reported in blank A of column 2?

Accepted Answer

A)  5
B)  6
C)  12
D)  17

Question 9

Reasons for the growing income inequality in the United States since 1980 include the following, except

Accepted Answer

A)  a shift in labor demand toward highly skilled and better-educated workers.
B)  the entrance of larger numbers of less-experienced, less-skilled workers into the workforce.
C)  an increase in the number of households headed by single or divorced women.
D)  the decline of unionism in the U.S. workforce.

Question 10

How does the time dimension affect income inequality?

Accepted Answer

Movement of individuals or households fr...

Question 11

Which is correct?

Accepted Answer

A)  Wealth is less equally distributed than income and therefore increases income inequality.
B)  Wealth is more equally distributed than income and therefore increases income inequality.
C)  Wealth is less equally distributed than income and therefore decreases income inequality.
D)  Wealth is more equally distributed than income and therefore decreases income inequality.

Question 12

List the three types of labor market discrimination.

Accepted Answer

The three types of labor marke...

Question 13

TANF stands for Temporary Assistance for Needy Families.

Accepted Answer

A) True 
 B)False

Question 14

Differences in skills or ability are one major reason for income differences in the United States.

Accepted Answer

A) True 
 B)False

Question 15

In the diagram, economic discrimination is best represented by point

Accepted Answer

A)  A.
B)  C rather than D or E.
C)  E rather than D or C.
D)  F.

Question 16

The distribution of household income in the United States becomes more unequal after taxes and transfer payments are taken into account.

Accepted Answer

A) True 
 B)False

Question 17

The U.S. poverty rate for

Accepted Answer

A)  Hispanics is higher than that for African Americans.
B)  children under 18 years of age is higher than for the overall population.
C)  women is lower than for the overall population.
D)  foreign-born individuals who are not citizens is below the poverty rate for the general population.

Question 18

The poverty rate in the United States was

Accepted Answer

A)  greatest for persons 65 and older in 2017.
B)  understated in 2017 because of in-kind transfers.
C)  about 12 percent in 2017.
D)  nearly 20 percent in 2017.

Question 19

Which of the following Gini ratios indicates the highest degree of income inequality?

Accepted Answer

A)  0.67
B)  0.56
C)  0.33
D)  0.15

Question 20

Refer to the diagram, where curves (a) through (e) are for five different countries. Of the countries listed below, income is most unequally distributed in country

Accepted Answer

A)  a.
B)  b.
C)  c.
D)  d.

Exam 23: Income Inequality, Poverty, and Discrimination

All social insurance programs are welfare or public charity programs.

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TANF stands for Temporary Assistance for Needy Families.

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How does the time dimension affect income inequality?

Correct AnswerverifiedMovement of individuals or households fr...View AnswerShow Answer

The U.S. poverty rate for

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In 2017, the percentage of the total U.S. population that lived in poverty was approximately

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Refer to the diagram, where curves (a) through (e) are for five different countries. Of the countries listed below, income is most unequally distributed in country

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The poverty rate in the United States was

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Which of the following Gini ratios indicates the highest degree of income inequality?

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Reasons for the growing income inequality in the United States since 1980 include the following, except

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Differences in skills or ability are one major reason for income differences in the United States.

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The average household income in the United States in 2017 was closest to

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Greater income equality that is achieved through the redistribution of income is thought to

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In the diagram, the elimination of discrimination is best represented by

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In the diagram, economic discrimination is best represented by point

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Refer to the table. What percentage should be reported in blank A of column 2?

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Which is correct?

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The distribution of household income in the United States becomes more unequal after taxes and transfer payments are taken into account.

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List the three types of labor market discrimination.

Correct AnswerverifiedThe three types of labor marke...View AnswerShow Answer

The equality-efficiency trade-off refers to

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Entitlement programs include

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Movement of individuals or households fr...
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The three types of labor marke...
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