Question 1

Figure 20-4 
-Refer to Figure 20-4. The ratio of female-to-male earnings has increased steadily from about 1980 to 2008 because the earnings of men

Accepted Answer

A)   increased steadily but by approximately half of the increase in the earnings of women.
B)   decreased while the earnings of women increased.
C)   stayed relatively constant while the earnings of women increased.
D)   decreased by substantially more than the decrease in the earnings of women.E) A) and D)
F) None of the above

Question 2

What is the primary problem in comparing income inequality in the US with income inequality in other countries?

Accepted Answer

difference...

Question 3

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

Question 4

Measuring poverty using an absolute income scale like the poverty line can be misleading because

Accepted Answer

A)   income measures do not include the value of in-kind transfers.
B)   money is more highly valued by the rich than by the poor.
C)   the poor are not likely to participate in the labor market.
D)   income measures are not adjusted for the effects of labor-market discrimination.E) All of the above
F) B) and C)

Question 5

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 6

An example of a transitory change in income is the

Accepted Answer

A)   annual cost of living adjustment to your salary.
B)   increase in income that results from a job promotion linked to your education.
C)   increase in income of California orange growers that results from an orange-killing frost in Florida.
D)   All of the above are correct.E) None of the above
F) C) and D)

Question 7

Libertarians believe that in considering economic fairness, one should primarily consider the

Accepted Answer

A)   outcome of the system.
B)   process by which outcomes arise.
C)   maximin criterion.
D)   maximization total social utility.E) A) and D)
F) A) and B)

Question 8

Table 20-1
The following table shows the distribution of income in Marysville. 
-Refer to Table 20-1. Seventy-five percent of all families have incomes below what level?

Accepted Answer

A)   $30,000
B)   $60,000
C)   $90,000
D)   There is insufficient information to answer this question.E) A) and B)
F) B) and C)

Question 9

Scenario 20-7
Zooey is a single mother of two young children whose husband died in a tragic car accident. She earns $20,000 per year working as a cashier at a grocery store. The government uses a negative income tax system in which Taxes owed = (1/4 of income) - $15,000.
-Refer to Scenario 20-7. Zooey's brother Zander owes $10,000 in taxes. How much does he earn?

Accepted Answer

The answer of Scenario 20-7
Zooey is a single mother of...

Question 10

Table 20-3
The Distribution of Income in Edgerton 
-Refer to Table 20-3. According to the table, what percent of families in Edgerton have income levels below $44,000?

Accepted Answer

A)   80 percent
B)   60 percent
C)   50 percent
D)   40 percentE) B) and C)
F) None of the above

Question 11

In-kind transfers

Accepted Answer

A)   are cash payments given to the poor from the government.
B)   are available to citizens of all income levels, but usually only sought by the poor.
C)   are non-monetary items given to the poor.
D)   include food stamps, but not housing vouchers or medical services.E) All of the above
F) None of the above

Question 12

Which of the following is not correct?

Accepted Answer

A)   Welfare is a broad term that includes a variety of government programs designed to help poor people.
B)   Since the early 1970s, welfare benefits adjusted for inflation have increased, as has the percentage of children living with only one parent.
C)   Critics of welfare programs argue that they can create incentives for unmarried women to have children.
D)   Supporters argue that welfare doesn't cause the decline of two­parent families.E) A) and B)
F) A) and C)

Question 13

A utilitarian government must

Accepted Answer

A)   calculate the utility of each individual in society.
B)   avoid enacting any policies that redistribute income from the rich to the poor.
C)   balance the gains from greater equality against the losses from distorted incentives.
D)   pursue policies that do not affect the middle class.E) C) and D)
F) B) and C)

Question 14

In general, which of the following would libertarians argue is more important than equal outcomes?

Accepted Answer

A)   equal opportunities
B)   equal incomes
C)   providing a social safety net
D)   offering the opportunity to purchase social insuranceE) A) and D)
F) A) and B)

Question 15

According to the maximin criterion, income should be transferred from the rich to the poor as long as it

Accepted Answer

A)   raises the well-being of the least fortunate.
B)   does not alter incentives to work and save.
C)   promotes an equal distribution of income.
D)   does not lower the welfare of the elderly.E) None of the above
F) A) and B)

Question 16

Figure 20-3 
-Refer to Figure 20-3. Which of the following best describes the poverty rates by age from 1965 to 2011?

Accepted Answer

A)   The poverty rates by age have declined for all age groups.
B)   The percentage of people living in poverty has consistently been highest for the elderly aged 65 and over and lowest for adults aged 18 to 64.
C)   The percentage of children under age 18 and the percentage of adults aged 18 to 64 have maintained a similar trend while the percentage of elderly aged 65 and over has decreased significantly.
D)   The poverty rates by age have increased for all age groups.E) B) and C)
F) A) and D)

Question 17

Libertarians believe that

Accepted Answer

A)   the government should choose just policies as evaluated by an impartial observer behind a "veil of ignorance."
B)   the government should aim to maximize the well-being of the worst-off person in society.
C)   everyone in society should have equal utility.
D)   the government should not redistribute income.E) A) and D)
F) A) and C)

Question 18

The poverty rate is

Accepted Answer

A)   a measure of income inequality across families.
B)   the percentage of the population whose family income falls below a specified level.
C)   an absolute level of income set by the federal government for each family size.
D)   measured by the number of in-kind transfers that a family receives.E) B) and D)
F) A) and D)

Question 19

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 2010, how many more percentage points of total income did the top fifth of the population earn compared to if the income distribution were completely equal?

Accepted Answer

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

Question 20

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

Exam 20: Income Inequality and Poverty

Table 20-1 The following table shows the distribution of income in Marysville. -Refer to Table 20-1. Seventy-five percent of all families have incomes below what level?

Correct Answer
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Figure 20-4 -Refer to Figure 20-4. The ratio of female-to-male earnings has increased steadily from about 1980 to 2008 because the earnings of men

Correct Answer
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Figure 20-3 -Refer to Figure 20-3. Which of the following best describes the poverty rates by age from 1965 to 2011?

Correct Answer
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Measuring poverty using an absolute income scale like the poverty line can be misleading because

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

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

The poverty rate is

Correct Answer
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Libertarians believe that in considering economic fairness, one should primarily consider the

Correct Answer
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What is the primary problem in comparing income inequality in the US with income inequality in other countries?

Correct Answer
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difference...
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According to the maximin criterion, income should be transferred from the rich to the poor as long as it

Correct Answer
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An example of a transitory change in income is the

Correct Answer
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Table 20-3 The Distribution of Income in Edgerton -Refer to Table 20-3. According to the table, what percent of families in Edgerton have income levels below $44,000?

Correct Answer
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Which of the following is not correct?

Correct Answer
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Libertarians believe that

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In-kind transfers

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

Correct Answer
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The founders of utilitarianism include

Correct Answer
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In general, which of the following would libertarians argue is more important than equal outcomes?

Correct Answer
verified

A utilitarian government must

Correct Answer
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Exam 20: Income Inequality and Poverty

Table 20-1 The following table shows the distribution of income in Marysville. -Refer to Table 20-1. Seventy-five percent of all families have incomes below what level?

Correct AnswerverifiedShow Answer

Figure 20-4 -Refer to Figure 20-4. The ratio of female-to-male earnings has increased steadily from about 1980 to 2008 because the earnings of men

Correct AnswerverifiedShow Answer

Figure 20-3 -Refer to Figure 20-3. Which of the following best describes the poverty rates by age from 1965 to 2011?

Correct AnswerverifiedShow Answer

Measuring poverty using an absolute income scale like the poverty line can be misleading because

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

The poverty rate is

Correct AnswerverifiedShow Answer

Libertarians believe that in considering economic fairness, one should primarily consider the

Correct AnswerverifiedShow Answer

What is the primary problem in comparing income inequality in the US with income inequality in other countries?

Correct Answerverifieddifference...View AnswerShow Answer

According to the maximin criterion, income should be transferred from the rich to the poor as long as it

Correct AnswerverifiedShow Answer

An example of a transitory change in income is the

Correct AnswerverifiedShow Answer

Table 20-3 The Distribution of Income in Edgerton -Refer to Table 20-3. According to the table, what percent of families in Edgerton have income levels below $44,000?

Correct AnswerverifiedShow Answer

Which of the following is not correct?

Correct AnswerverifiedShow Answer

Libertarians believe that

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

In-kind transfers

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The founders of utilitarianism include

Correct AnswerverifiedShow Answer

In general, which of the following would libertarians argue is more important than equal outcomes?

Correct AnswerverifiedShow Answer

A utilitarian government must

Correct AnswerverifiedShow Answer

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

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difference...
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