Question 1

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.E) A) and B)
F) A) and D)

Question 2

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.E) A) and B)
F) A) and C)

Question 3

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.E) A) and D)
F) None of the above

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

TANF stands for Temporary Assistance for Needy Families.

Accepted Answer

A) True 
 B)False

Question 6

How does the time dimension affect income inequality?

Accepted Answer

Movement of individuals or households fr...

Question 7

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.E) A) and C)
F) B) and C)

Question 8

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.E) A) and C)
F) A) and B)

Question 9

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.E) None of the above
F) All of the above

Question 10

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 11

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.E) B) and C)
F) All of the above

Question 12

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)  0.15E) A) and C)
F) All of the above

Question 13

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

Accepted Answer

A)  5
B)  6
C)  12
D)  17E) A) and D)
F) A) and C)

Question 14

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.E) A) and D)
F) B) and C)

Question 15

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.E) A) and B)
F) B) and D)

Question 16

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.E) A) and B)
F) A) and C)

Question 17

List the three types of labor market discrimination.

Accepted Answer

The three types of labor marke...

Question 18

All social insurance programs are welfare or public charity programs.

Accepted Answer

A) True 
 B)False

Question 19

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.E) C) and D)
F) B) and C)

Question 20

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.E) B) and D)
F) A) and B)

Exam 23: Income Inequality, Poverty, and Discrimination

List the three types of labor market discrimination.

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

TANF stands for Temporary Assistance for Needy Families.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The poverty rate in the United States was

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

How does the time dimension affect income inequality?

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

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

Correct AnswerverifiedShow Answer

The U.S. poverty rate for

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Entitlement programs include

Correct AnswerverifiedShow Answer

All social insurance programs are welfare or public charity programs.

Correct AnswerverifiedShow Answer

The equality-efficiency trade-off refers to

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which is correct?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

In the diagram, economic discrimination is best represented by point

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct Answer
verified
The three types of labor marke...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Movement of individuals or households fr...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified