Question 1

When the government enacts policies to redistribute income,

Accepted Answer

A)   the objective is to enhance efficiency and a side effect is that the allocation of resources becomes more equal.
B)   the objective is to enhance efficiency and a side effect is that the allocation of resources becomes less equal.
C)   the objective is to enhance equality and a side effect is that the allocation of resources becomes more efficient.
D)   the objective is to enhance equality and a side effect is that the allocation of resources becomes less efficient.E) B) and D)
F) A) and B)

Question 2

Which political philosophy argues that the govenment should choose policies to maximize the total utility of everyone in society?

Accepted Answer

The answer of Which political philosophy argues that the govenment...

Question 3

Which of the following is not a question that economists try to answer when measuring the distribution of income?

Accepted Answer

A)   How many people live in poverty?
B)   How often do people receive a raise at work?
C)   How often do people move among income classes?
D)   What problems arise in measuring the amount of inequality?E) B) and C)
F) C) and D)

Question 4

The life cycle effect characterizes a lifetime income profile in which income

Accepted Answer

A)   tends to follow a seasonal pattern.
B)   rises as a worker gains maturity and experience.
C)   rises and falls in conjunction with the business cycle.
D)   falls during the early years of market activity and peaks at retirement.E) None of the above
F) All of the above

Question 5

Economic mobility refers to the

Accepted Answer

A)   government's attempt to distribute monetary assistance to areas most in need.
B)   ability of families to freely relocate to find good jobs.
C)   movement of people among income classes.
D)   movement of resources from one country to another.E) C) and D)
F) A) and B)

Question 6

According to a utilitarian,total social utility will be maximized when marginal dollars are distributed to the people with the

Accepted Answer

A)   lowest marginal utility of income.
B)   highest marginal utility of income.
C)   highest total utility from their income.
D)   most productive labor resources.E) A) and D)
F) None of the above

Question 7

In the Temporary Assistance for Needy Families program,most families

Accepted Answer

A)   must have both parents in the home to qualify.
B)   are female head-of-household families in which the father is absent.
C)   have adult children with disabilities living at home.
D)   are ineligible to receive assistance from other support programs.E) All of the above
F) A) and B)

Question 8

In 2008,what percentage of U.S.families had income levels above $113,205?

Accepted Answer

A)   5 percent
B)   20 percent
C)   80 percent
D)   95 percentE) C) and D)
F) All of the above

Question 9

Diminishing marginal utility suggests that

Accepted Answer

A)   more is always preferred to less.
B)   the well-being of society is maximized when the distribution of income is equal.
C)   the poor are less efficient at spending money than the rich.
D)   the poor receive more satisfaction from the last dollar spent than the rich.E) A) and C)
F) A) and B)

Question 10

Because people can borrow when they are young,the life cycle theory would suggest that one's standard of living depends on

Accepted Answer

A)   lifetime income rather than annual income.
B)   aggregate income rather than annual personal income.
C)   annual extended-family income rather than annual personal income.
D)   income averaged across seasons rather than across years.E) A) and B)
F) B) and C)

Question 11

The United States has more income inequality than

Accepted Answer

A)   Brazil.
B)   Mexico.
C)   Canada.
D)   South Africa.E) A) and C)
F) A) and B)

Question 12

Economists who study economic mobility have found that,if a father earns 20 percent above his generation's average income,his son will most likely earn

Accepted Answer

A)   an income equal to his generation's average income.
B)   8 percent above his generation's average income.
C)   5 percent below his generation's average income.
D)   3 percent above his generation's average income.E) A) and C)
F) C) and D)

Question 13

"The government should choose policies deemed to be just,as evaluated by an impartial observer behind a 'veil of ignorance.'" This statement is most closely associated with which political philosophy?

Accepted Answer

A)   liberalism
B)   utilitarianism
C)   libertarianism
D)   welfarismE) B) and C)
F) A) and B)

Question 14

Which of the following is not correct?

Accepted Answer

A)   Critics argue that minimum-wage laws hurt the very people they are intended to help.
B)   Minimum-wage laws may increase unemployment among the groups of workers affected by the minimum wage.
C)   If the demand for unskilled labor is relatively inelastic,the higher wage will produce more unemployment than if the demand for unskilled labor is relatively elastic.
D)   Minimum-wage laws may benefit teenagers from middle-class families,so the policy is not a precise way to help the poor.E) A) and C)
F) A) and B)

Question 15

John Rawls,who developed the way of thinking called liberalism,argued that government policies should be aimed at maximizing the sum of utility of everyone in society.

Accepted Answer

A) True 
 B)False

Question 16

Assume that the government proposes a negative income tax that calculates taxes owed by the formula,Taxes Owed = (a  
Income)- 
a.What is the value for "a"?
b.What is the value for "b"?
b.A family with an income of $40,000 pays $5,000 in taxes,and a family with an income of $12,000 receives an income subsidy of $2,000.
c.What is the tax liability of a family with an income of $50,000?
d.At what level of income will a family neither pay taxes,nor receive an income subsidy?

Accepted Answer

a.0.25 or ...

Question 17

The measured poverty rate may not reflect the true extent of economic deprivation because it does not include some forms of government assistance.

Accepted Answer

A) True 
 B)False

Question 18

If the government decided that each family needs a minimum income of $25,000 and promised to make up the difference between whatever a family earned and $25,000,which of the following is correct?

Accepted Answer

A)   The government is effectively taxing every dollar earned up to $25,000 at a rate of 100%.
B)   This program would reduce the incentive to work to earn any wage up to $25,000.
C)   If workers are discouraged from working due to this program,they will miss any on-the-job training that would have otherwise occurred,limiting their ability to improve their skills.
D)   All of the above are correct.E) A) and D)
F) All of the above

Question 19

Based on data from 2008,the top fifth of all families received approximately what percent of all income in the United States?

Accepted Answer

A)   78 percent
B)   48 percent
C)   21 percent
D)   4 percentE) None of the above
F) C) and D)

Question 20

In the United States,labor earnings are what percent of total income?

Accepted Answer

A)   75 percent
B)   70 percent
C)   65 percent
D)   50 percentE) A) and C)
F) B) and D)

Exam 20: Income Inequality and Poverty

The life cycle effect characterizes a lifetime income profile in which income

Correct Answer
verified

When the government enacts policies to redistribute income,

Correct Answer
verified

The United States has more income inequality than

Correct Answer
verified

According to a utilitarian,total social utility will be maximized when marginal dollars are distributed to the people with the

Correct Answer
verified

Correct Answer
verified
a.0.25 or ...
View Answer

In the Temporary Assistance for Needy Families program,most families

Correct Answer
verified

"The government should choose policies deemed to be just,as evaluated by an impartial observer behind a 'veil of ignorance.'" This statement is most closely associated with which political philosophy?

Correct Answer
verified

Based on data from 2008,the top fifth of all families received approximately what percent of all income in the United States?

Correct Answer
verified

Which political philosophy argues that the govenment should choose policies to maximize the total utility of everyone in society?

Correct Answer
verified

In 2008,what percentage of U.S.families had income levels above $113,205?

Correct Answer
verified

Economic mobility refers to the

Correct Answer
verified

Diminishing marginal utility suggests that

Correct Answer
verified

Economists who study economic mobility have found that,if a father earns 20 percent above his generation's average income,his son will most likely earn

Correct Answer
verified

If the government decided that each family needs a minimum income of $25,000 and promised to make up the difference between whatever a family earned and $25,000,which of the following is correct?

Correct Answer
verified

Which of the following is not a question that economists try to answer when measuring the distribution of income?

Correct Answer
verified

The measured poverty rate may not reflect the true extent of economic deprivation because it does not include some forms of government assistance.

Correct Answer
verified

Which of the following is not correct?

Correct Answer
verified

In the United States,labor earnings are what percent of total income?

Correct Answer
verified

John Rawls,who developed the way of thinking called liberalism,argued that government policies should be aimed at maximizing the sum of utility of everyone in society.

Correct Answer
verified

Because people can borrow when they are young,the life cycle theory would suggest that one's standard of living depends on

Correct Answer
verified

Exam 20: Income Inequality and Poverty

The life cycle effect characterizes a lifetime income profile in which income

Correct AnswerverifiedShow Answer

When the government enacts policies to redistribute income,

Correct AnswerverifiedShow Answer

The United States has more income inequality than

Correct AnswerverifiedShow Answer

According to a utilitarian,total social utility will be maximized when marginal dollars are distributed to the people with the

Correct AnswerverifiedShow Answer

Correct Answerverifieda.0.25 or ...View AnswerShow Answer

In the Temporary Assistance for Needy Families program,most families

Correct AnswerverifiedShow Answer

"The government should choose policies deemed to be just,as evaluated by an impartial observer behind a 'veil of ignorance.'" This statement is most closely associated with which political philosophy?

Correct AnswerverifiedShow Answer

Based on data from 2008,the top fifth of all families received approximately what percent of all income in the United States?

Correct AnswerverifiedShow Answer

Which political philosophy argues that the govenment should choose policies to maximize the total utility of everyone in society?

Correct AnswerverifiedShow Answer

In 2008,what percentage of U.S.families had income levels above $113,205?

Correct AnswerverifiedShow Answer

Economic mobility refers to the

Correct AnswerverifiedShow Answer

Diminishing marginal utility suggests that

Correct AnswerverifiedShow Answer

Economists who study economic mobility have found that,if a father earns 20 percent above his generation's average income,his son will most likely earn

Correct AnswerverifiedShow Answer

If the government decided that each family needs a minimum income of $25,000 and promised to make up the difference between whatever a family earned and $25,000,which of the following is correct?

Correct AnswerverifiedShow Answer

Which of the following is not a question that economists try to answer when measuring the distribution of income?

Correct AnswerverifiedShow Answer

The measured poverty rate may not reflect the true extent of economic deprivation because it does not include some forms of government assistance.

Correct AnswerverifiedShow Answer

Which of the following is not correct?

Correct AnswerverifiedShow Answer

In the United States,labor earnings are what percent of total income?

Correct AnswerverifiedShow Answer

John Rawls,who developed the way of thinking called liberalism,argued that government policies should be aimed at maximizing the sum of utility of everyone in society.

Correct AnswerverifiedShow Answer

Because people can borrow when they are young,the life cycle theory would suggest that one's standard of living depends on

Correct AnswerverifiedShow Answer

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a.0.25 or ...
View Answer

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verified

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Correct Answer
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