Question 1

Economic discrimination occurs when two equal factors of production are paid differently.

Accepted Answer

A) True 
 B)False

Question 2

The essence of the trade-off between equality and efficiency is that

Accepted Answer

A)  taxes and transfers reduce incentives to earn income, thus reducing GNP.
B)  people are ideologically opposed to socialistic income redistribution.
C)  redistribution violates the "work ethic."
D)  people are prejudiced against blacks and women.E) A) and B)
F) A) and C)

Question 3

Which of the following is not a source of inequality in incomes?

Accepted Answer

A)  Redistribution of income
B)  Differences in intensity of work
C)  Differences in ability
D)  Risk takingE) All of the above
F) A) and C)

Question 4

Discuss the major programs to combat poverty and evaluate them on the basis of work incentives.

Accepted Answer

One program is education, although this ...

Question 5

Inheritance taxes tend to increase income inequality in the long run.

Accepted Answer

A) True 
 B)False

Question 6

Taken as a whole, antipoverty programs may actually put a poor family in a position in which the family becomes worse off if its earnings rise.

Accepted Answer

A) True 
 B)False

Question 7

If incomes were equally distributed in the United States, each fifth of the population would receive ____ percent of the income.

Accepted Answer

A)  5
B)  10
C)  15
D)  20E) All of the above
F) A) and B)

Question 8

In 2017, about what percentage of total income was earned by the poorest fifth of all U.S.households?

Accepted Answer

A)  12 percent
B)  6 percent
C)  3 percent
D)  1 percentE) All of the above
F) A) and C)

Question 9

In 1962, Michael Harrington argued in The Other America that there was chronic, severe poverty in America.

Accepted Answer

A) True 
 B)False

Question 10

Risk taking

Accepted Answer

A)  is economically wasteful.
B)  is a cause of income inequality.
C)  is not a cause of income inequality.
D)  evens out income inequality because of the bell curve.E) B) and D)
F) B) and C)

Question 11

A minority candidate may not have the same chances as a white candidate for a job simply based on an employer's misconceptions about minorities.

Accepted Answer

A) True 
 B)False

Question 12

With a negative income tax, if people get at least $10,000 and the breakeven point is $50,000, what is the tax rate?

Accepted Answer

A)  50 percent
B)  25 percent
C)  20 percent
D)  5 percentE) C) and D)
F) A) and B)

Question 13

If a female supervisor is discriminated against by one of her workers who refuses to cooperate, she may earn lower wages.

Accepted Answer

A) True 
 B)False

Question 14

Is education the swiftest method to eliminate poverty.Explain.

Accepted Answer

Evidence points clearly to the conclusio...

Question 15

The simplest economic definition of discrimination is

Accepted Answer

A)  prejudice.
B)  unequal pay for equal work.
C)  a dislike by one group associating with another group.
D)  unequal pay for unequal work.E) All of the above
F) None of the above

Question 16

What does a market do poorly?

Accepted Answer

A)  Incentivize individuals to efficiently use society's resources
B)  Price labor based actually on marginal productivity
C)  Promote equal income distribution
D)  Allocate resources to their highest value usesE) C) and D)
F) A) and C)

Question 17

If one includes in-kind income in the calculation, the

Accepted Answer

A)  official poverty rate becomes meaningless.
B)  incidence of poverty actually increases.
C)  poverty rate is unchanged.
D)  fraction of the population in poverty drops.E) C) and D)
F) B) and C)

Question 18

The welfare program economists believe to be most compatible with economic efficiency is

Accepted Answer

A)  a regressive tax system.
B)  AFDC.
C)  a negative income tax.
D)  Medicare/Medicaid.E) A) and B)
F) A) and C)

Question 19

In 2017, the poverty line for a family of four was about $42,000.

Accepted Answer

A) True 
 B)False

Question 20

Under current federal antipoverty programs,

Accepted Answer

A)  economic equality is promoted at the least possible cost in economic efficiency.
B)  a family's benefits do not depend on its earnings from work.
C)  a family's total income (cash and in-kind benefits)  may actually fall if its earnings from work rise.
D)  families with children are entitled to no more assistance than families without children.E) None of the above
F) B) and C)

Exam 20: Poverty, Inequality, and Discrimination

If one includes in-kind income in the calculation, the

Correct AnswerverifiedShow Answer

Taken as a whole, antipoverty programs may actually put a poor family in a position in which the family becomes worse off if its earnings rise.

Correct AnswerverifiedShow Answer

Is education the swiftest method to eliminate poverty.Explain.

Correct AnswerverifiedEvidence points clearly to the conclusio...View AnswerShow Answer

With a negative income tax, if people get at least $10,000 and the breakeven point is $50,000, what is the tax rate?

Correct AnswerverifiedShow Answer

Which of the following is not a source of inequality in incomes?

Correct AnswerverifiedShow Answer

In 1962, Michael Harrington argued in The Other America that there was chronic, severe poverty in America.

Correct AnswerverifiedShow Answer

In 2017, the poverty line for a family of four was about $42,000.

Correct AnswerverifiedShow Answer

The welfare program economists believe to be most compatible with economic efficiency is

Correct AnswerverifiedShow Answer

Discuss the major programs to combat poverty and evaluate them on the basis of work incentives.

Correct AnswerverifiedOne program is education, although this ...View AnswerShow Answer

Economic discrimination occurs when two equal factors of production are paid differently.

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What does a market do poorly?

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Inheritance taxes tend to increase income inequality in the long run.

Correct AnswerverifiedShow Answer

If a female supervisor is discriminated against by one of her workers who refuses to cooperate, she may earn lower wages.

Correct AnswerverifiedShow Answer

The essence of the trade-off between equality and efficiency is that

Correct AnswerverifiedShow Answer

A minority candidate may not have the same chances as a white candidate for a job simply based on an employer's misconceptions about minorities.

Correct AnswerverifiedShow Answer

In 2017, about what percentage of total income was earned by the poorest fifth of all U.S.households?

Correct AnswerverifiedShow Answer

Risk taking

Correct AnswerverifiedShow Answer

The simplest economic definition of discrimination is

Correct AnswerverifiedShow Answer

If incomes were equally distributed in the United States, each fifth of the population would receive ____ percent of the income.

Correct AnswerverifiedShow Answer

Under current federal antipoverty programs,

Correct AnswerverifiedShow Answer

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Evidence points clearly to the conclusio...
View Answer

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One program is education, although this ...
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