Question 1

Based on U.S.income data from 2005,the bottom fifth of all families received approximately what percent of all income?

Accepted Answer

A)   48 percent
B)   21 percent
C)   10 percent
D)   4 percentE) A) and B)
F) None of the above

Question 2

The country that has the highest degree of income inequality is

Accepted Answer

A)   Japan.
B)   Brazil.
C)   South Africa.
D)   the United States.E) A) and D)
F) A) and C)

Question 3

Briefly describe the three prominent schools of thought in political philosophy.Identify one of the most well-known philosophers in each school.

Accepted Answer

According to utilitarianism,the governme...

Question 4

The maximin criterion for government policies is associated with

Accepted Answer

A)   the school of thought called utilitarianism.
B)   the school of thought called liberalism.
C)   the school of thought called libertarianism.
D)   the school of thought called stoicism.E) B) and C)
F) C) and D)

Question 5

Which of the following statements is not correct?

Accepted Answer

A)   Two key elements of welfare reform are work requirements and limiting the time that recipients can receive benefits.
B)   The Earned Income Tax Credit (EIT
C)  is very similar to a negative income tax.
C)   Minimum wage laws will likely increase unemployment.
D)   The elderly are more likely to be poor than single mothers.E) None of the above
F) B) and D)

Question 6

Which of the following is not a characteristic of the Earned Income Tax Credit (EITC) ?

Accepted Answer

A)   It does not discourage recipients from working.
B)   It is less distortionary than other anti-poverty programs.
C)   It helps the disabled who cannot work.
D)   It applies only to the working poor.E) None of the above
F) C) and D)

Question 7

Suppose that Jamal is moving to a state where personal incomes are distributed randomly.If Jamal believes in liberalism,he would prefer

Accepted Answer

A)   an income distribution that is relatively equal.
B)   that everyone has the same work opportunities and market-determined wage rates.
C)   that private property be transformed to government property to safeguard people's incomes.
D)   less economic assistance to the poor because it distorts the price system.E) A) and B)
F) A) and C)

Question 8

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 below $90,000?

Accepted Answer

A)   20 percent.
B)   40 percent.
C)   60 percent.
D)   80 percent.E) All of the above
F) A) and B)

Question 9

Which of the following is an advantage of an in-kind transfer in comparison to a cash payment?

Accepted Answer

A)   In-kind transfers cost less to administer than cash transfers.
B)   In-kind transfers restrict the use of the benefit;thus,recipients receive necessities such as food and health care.
C)   In-kind transfers are more efficient than cash transfers.
D)   In-kind transfers give the recipient more utility than cash transfers.E) B) and D)
F) A) and B)

Question 10

Table 20-3
The Distribution of Income in Hapland
 
-Refer to Table 20-3.Where would the government in Hapland set the poverty line to have a poverty rate of 40 percent?

Accepted Answer

A)   $45,000.
B)   $60,000.
C)   $90,000.
D)   $120,000.E) B) and D)
F) A) and D)

Question 11

Governments enact policies to

Accepted Answer

A)   make the distribution of income more efficient.
B)   make the distribution of income more equal.
C)   maximize the use of the welfare system.
D)   minimize the use of in-kind transfers.E) B) and D)
F) All of the above

Question 12

Initial policy efforts to curb child labor focused on

Accepted Answer

A)   educating parents.
B)   educating children.
C)   banning child-made products.
D)   taxing employers that hire children.E) A) and D)
F) A) and C)

Question 13

Suppose that Jake and Abby each win $1,000 in a state lottery.Jake spends his winnings on a new television.Abby saves her winnings for a "rainy day." Which of the following is correct?

Accepted Answer

A)   Both Jake and Abby's behaviors suggest that they base their purchasing decisions on transitory income.
B)   Jake's behavior suggests that he bases his purchasing decisions on transitory income rather than permanent income.Abby's behavior suggest that she bases her purchasing decisions on permanent income rather than transitory income.
C)   Jake's behavior suggests that he bases his purchasing decisions on permanent income rather than transitory income.Abby's behavior suggests that she bases her purchasing decisions on transitory income rather than permanent income.
D)   Both Jake and Abby's behaviors suggest that they base their purchasing decisions on permanent income.E) A) and C)
F) C) and D)

Question 14

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.E) B) and C)
F) None of the above

Question 15

Given the table shown,which country has a more equal income distribution? Explain your answer.

Accepted Answer

Country A has a more equal income distri...

Question 16

The 2005 U.S.distribution of income shows that the top fifth of all families have

Accepted Answer

A)   more than ten times the income of the bottom 20 percent.
B)   more than five times the income of the bottom 20 percent.
C)   more than double the income of the bottom 20 percent.
D)   the same share of income as the bottom 20 percent.E) A) and C)
F) A) and B)

Question 17

If the value of in-kind transfers are taken into account,the number of families living in poverty in the United States would

Accepted Answer

A)   increase by about 1 percent.
B)   decrease by about 1 percent.
C)   decrease by about 5 percent.
D)   decrease by about 10 percent.E) B) and C)
F) A) and D)

Question 18

The table below reflects the levels of total utility received from income for each of four members of a society.
  
a.
Assume that the society has the following income distribution:
Peter $3
Paul $7
Mary $5
Jane $3
Is it possible for the government to increase total aggregate utility by redistributing income among members of society? Explain your answer.
b.
Assume that the government has $19 to allocate among the four members of society.(Assume that no one has any income to start with. )If the government is interested in distributing income in a way that maximizes aggregate total utility,how should it distribute the $19 of income?
c.
Does the table above describe a situation characterized by diminishing marginal utility? Explain your answer.

Accepted Answer

a.
No.If a dollar is taken from anyone,t...

Question 19

Government vouchers to purchase food,also known as food stamps,are an example of

Accepted Answer

A)   an in-kind transfer.
B)   life-cycle income.
C)   a negative income tax.
D)   permanent income.E) None of the above
F) A) and D)

Question 20

Eric V.Edmonds says which of the following explains most of the drop in child labor rates in Vietnam?

Accepted Answer

A)   the availability of good schools
B)   the availability of jobs
C)   rising family income
D)   internet accessE) All of the above
F) C) and D)

Exam 20: Income Inequality and Poverty

Based on U.S.income data from 2005,the bottom fifth of all families received approximately what percent of all income?

Correct Answer
verified

Given the table shown,which country has a more equal income distribution? Explain your answer.

Correct Answer
verified
Country A has a more equal income distri...
View Answer

Which of the following is an advantage of an in-kind transfer in comparison to a cash payment?

Correct Answer
verified

Initial policy efforts to curb child labor focused on

Correct Answer
verified

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 below $90,000?

Correct Answer
verified

Table 20-3 The Distribution of Income in Hapland -Refer to Table 20-3.Where would the government in Hapland set the poverty line to have a poverty rate of 40 percent?

Correct Answer
verified

Briefly describe the three prominent schools of thought in political philosophy.Identify one of the most well-known philosophers in each school.

Correct Answer
verified
According to utilitarianism,the governme...
View Answer

If the value of in-kind transfers are taken into account,the number of families living in poverty in the United States would

Correct Answer
verified

Correct Answer
verified
a.
No.If a dollar is taken from anyone,t...
View Answer

Which of the following is not a characteristic of the Earned Income Tax Credit (EITC) ?

Correct Answer
verified

Government vouchers to purchase food,also known as food stamps,are an example of

Correct Answer
verified

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

Correct Answer
verified

The country that has the highest degree of income inequality is

Correct Answer
verified

The 2005 U.S.distribution of income shows that the top fifth of all families have

Correct Answer
verified

Suppose that Jamal is moving to a state where personal incomes are distributed randomly.If Jamal believes in liberalism,he would prefer

Correct Answer
verified

The maximin criterion for government policies is associated with

Correct Answer
verified

Which of the following statements is not correct?

Correct Answer
verified

Suppose that Jake and Abby each win $1,000 in a state lottery.Jake spends his winnings on a new television.Abby saves her winnings for a "rainy day." Which of the following is correct?

Correct Answer
verified

Governments enact policies to

Correct Answer
verified

Eric V.Edmonds says which of the following explains most of the drop in child labor rates in Vietnam?

Correct Answer
verified

Exam 20: Income Inequality and Poverty

Based on U.S.income data from 2005,the bottom fifth of all families received approximately what percent of all income?

Correct AnswerverifiedShow Answer

Given the table shown,which country has a more equal income distribution? Explain your answer.

Correct AnswerverifiedCountry A has a more equal income distri...View AnswerShow Answer

Which of the following is an advantage of an in-kind transfer in comparison to a cash payment?

Correct AnswerverifiedShow Answer

Initial policy efforts to curb child labor focused on

Correct AnswerverifiedShow Answer

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 below $90,000?

Correct AnswerverifiedShow Answer

Table 20-3 The Distribution of Income in Hapland -Refer to Table 20-3.Where would the government in Hapland set the poverty line to have a poverty rate of 40 percent?

Correct AnswerverifiedShow Answer

Briefly describe the three prominent schools of thought in political philosophy.Identify one of the most well-known philosophers in each school.

Correct AnswerverifiedAccording to utilitarianism,the governme...View AnswerShow Answer

If the value of in-kind transfers are taken into account,the number of families living in poverty in the United States would

Correct AnswerverifiedShow Answer

Correct Answerverifieda.No.If a dollar is taken from anyone,t...View AnswerShow Answer

Which of the following is not a characteristic of the Earned Income Tax Credit (EITC) ?

Correct AnswerverifiedShow Answer

Government vouchers to purchase food,also known as food stamps,are an example of

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The country that has the highest degree of income inequality is

Correct AnswerverifiedShow Answer

The 2005 U.S.distribution of income shows that the top fifth of all families have

Correct AnswerverifiedShow Answer

Suppose that Jamal is moving to a state where personal incomes are distributed randomly.If Jamal believes in liberalism,he would prefer

Correct AnswerverifiedShow Answer

The maximin criterion for government policies is associated with

Correct AnswerverifiedShow Answer

Which of the following statements is not correct?

Correct AnswerverifiedShow Answer

Suppose that Jake and Abby each win $1,000 in a state lottery.Jake spends his winnings on a new television.Abby saves her winnings for a "rainy day." Which of the following is correct?

Correct AnswerverifiedShow Answer

Governments enact policies to

Correct AnswerverifiedShow Answer

Eric V.Edmonds says which of the following explains most of the drop in child labor rates in Vietnam?

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Country A has a more equal income distri...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified
According to utilitarianism,the governme...
View Answer

Correct Answer
verified

Correct Answer
verified
a.
No.If a dollar is taken from anyone,t...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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