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

Question 2

The goal of libertarianism is to

Accepted Answer

A)  redistribute income based on the assumption of diminishing marginal utility.
B)  redistribute income in order to maximize the well-being of the worst-off person in society.
C)  punish crimes and enforce voluntary agreements but not to redistribute income.
D)  measure happiness and satisfaction.E) A) and D)
F) A) and C)

Question 3

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

Question 4

A government's policy of redistributing income makes the income distribution

Accepted Answer

A)  more equal, distorts incentives, alters behavior, and makes the allocation of resources more efficient.
B)  more equal, distorts incentives, alters behavior, and makes the allocation of resources less efficient.
C)  less equal, distorts incentives, alters behavior, and makes the allocation of resources more efficient.
D)  less equal, distorts incentives, alters behavior, and makes the allocation of resources less efficient.E) A) and D)
F) None of the above

Question 5

If in-kind transfers were included in income at their market value, what would happen to the number of families below the poverty line?

Accepted Answer

It would d...

Question 6

Table 20-9
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 20-9. Which of the following statements best describes the trends in the table?

Accepted Answer

A)  From 1980 to 2010, the distribution of income has become less equal.
B)  From 1980 to 2010, the distribution of income has remained the same.
C)  From 1980 to 2010, the distribution of income has become more equal.
D)  None of the above is correct.E) B) and D)
F) All of the above

Question 7

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. One of Zooey's friends tells her she would have more money for the year if she quit her job and filed her tax return with $0 in income. Is her friend correct? Why or why not?

Accepted Answer

No, she would have $...

Question 8

The 2011 U.S. distribution of income shows that the top 5 percent of families earn approximately how much income per year?

Accepted Answer

A)  $170,000 and over
B)  $205,000 and over
C)  $250,000 and over
D)  $325,000 and overE) A) and B)
F) A) and C)

Question 9

With a minimum wage law, the workers who remain employed benefit from a .

Accepted Answer

The answer of With a minimum wage law, the workers...

Question 10

The United States has a more equal income distribution than many developing economies such as Mexico, South Africa, and Brazil.

Accepted Answer

A) True 
 B)False

Question 11

Suppose society consists of three individuals: Phil, Jay, and Mitchell. Phil has $60,000 of income, Jay has $200,000 of income, and Mitchell has $100,000 of income. A utilitarian would argue that

Accepted Answer

A)  taking $1 from Mitchell and giving it to Phil would increase society's total utility.
B)  taking $1 from Mitchell and giving it to Jay would increase society's total utility.
C)  taking $1 from Phil and giving it to Jay would increase society's total utility.
D)  None of the above are correct because all three individuals have sufficient income.E) B) and D)
F) All of the above

Question 12

Table 20-12
Income Inequality in 2010 in the United States by Race
The values in the table reflect the percentages of pre-tax-and-transfer income.  Source: US Census Bureau
-Refer to Table 20-12. According to the information in the table, which race had the most income inequality in 2010?

Accepted Answer

A)  Asian
B)  Black
C)  Hispanic
D)  WhiteE) B) and D)
F) All of the above

Question 13

Figure 20-5 o, and employment would rise above Qo. B) above Wo, and employment would fall below Qo. C) below Wo, and employment would rise above Qo. D) below Wo, and employment would fall below Qo." class="answers-bank-image d-inline" rel="preload" >
-Refer to Figure 20-5. An effective minimum wage would be set at a level

Accepted Answer

A)  above Wo, and employment would rise above Qo.
B)  above Wo, and employment would fall below Qo.
C)  below Wo, and employment would rise above Qo.
D)  below Wo, and employment would fall below Qo.E) B) and C)
F) A) and D)

Question 14

Which of the following statements is correct?

Accepted Answer

A)  The distribution of annual income accurately reflects the distribution of living standards.
B)  Permanent incomes are more equally distributed than annual incomes.
C)  Transitory changes in income generally have a significant impact on a family's standard of living.
D)  Annual income is more equally distributed than permanent income.E) A) and B)
F) None of the above

Question 15

Which of the following will not occur when government policies are enacted to make the distribution of income more equitable?

Accepted Answer

A)  People will alter their behaviors.
B)  Incentives will be distorted.
C)  Total utility will likely remain constant.
D)  The allocation of resources will be less efficient .E) A) and B)
F) None of the above

Question 16

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 17

Minimum wage laws

Accepted Answer

A)  benefit all unskilled workers.
B)  create unemployment, but if demand is relatively elastic, the unemployment effects will be minor.
C)  may help the nonpoor, such as teenagers from wealthy families.
D)  reduce poverty by reducing unemployment.E) None of the above
F) A) and D)

Question 18

When the government redistributes income to achieve greater equality, it

Accepted Answer

A)  distorts incentives.
B)  improves efficiency.
C)  focuses on middle income brackets.
D)  relies on foreign aid to help balance the budget.E) A) and C)
F) A) and D)

Exam 20: Income Inequality and Poverty

When the government redistributes income to achieve greater equality, it

Correct Answer
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Suppose society consists of three individuals: Phil, Jay, and Mitchell. Phil has $60,000 of income, Jay has $200,000 of income, and Mitchell has $100,000 of income. A utilitarian would argue that

Correct Answer
verified

The goal of libertarianism is to

Correct Answer
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When the government enacts policies to redistribute income,

Correct Answer
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Which of the following will not occur when government policies are enacted to make the distribution of income more equitable?

Correct Answer
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Which of the following statements is correct?

Correct Answer
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If in-kind transfers were included in income at their market value, what would happen to the number of families below the poverty line?

Correct Answer
verified
It would d...
View Answer

Table 20-12 Income Inequality in 2010 in the United States by Race The values in the table reflect the percentages of pre-tax-and-transfer income. Source: US Census Bureau -Refer to Table 20-12. According to the information in the table, which race had the most income inequality in 2010?

Correct Answer
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The 2011 U.S. distribution of income shows that the top 5 percent of families earn approximately how much income per year?

Correct Answer
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Figure 20-5 -Refer to Figure 20-5. An effective minimum wage would be set at a level

Correct Answer
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Correct Answer
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No, she would have $...
View Answer

Correct Answer
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Minimum wage laws

Correct Answer
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A government's policy of redistributing income makes the income distribution

Correct Answer
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Table 20-9 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 20-9. Which of the following statements best describes the trends in the table?

Correct Answer
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With a minimum wage law, the workers who remain employed benefit from a .

Correct Answer
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The United States has a more equal income distribution than many developing economies such as Mexico, South Africa, and Brazil.

Correct Answer
verified

Economic mobility refers to the

Correct Answer
verified

Exam 20: Income Inequality and Poverty

When the government redistributes income to achieve greater equality, it

Correct AnswerverifiedShow Answer

Suppose society consists of three individuals: Phil, Jay, and Mitchell. Phil has $60,000 of income, Jay has $200,000 of income, and Mitchell has $100,000 of income. A utilitarian would argue that

Correct AnswerverifiedShow Answer

The goal of libertarianism is to

Correct AnswerverifiedShow Answer

When the government enacts policies to redistribute income,

Correct AnswerverifiedShow Answer

Which of the following will not occur when government policies are enacted to make the distribution of income more equitable?

Correct AnswerverifiedShow Answer

Which of the following statements is correct?

Correct AnswerverifiedShow Answer

If in-kind transfers were included in income at their market value, what would happen to the number of families below the poverty line?

Correct AnswerverifiedIt would d...View AnswerShow Answer

Table 20-12 Income Inequality in 2010 in the United States by Race The values in the table reflect the percentages of pre-tax-and-transfer income. Source: US Census Bureau -Refer to Table 20-12. According to the information in the table, which race had the most income inequality in 2010?

Correct AnswerverifiedShow Answer

The 2011 U.S. distribution of income shows that the top 5 percent of families earn approximately how much income per year?

Correct AnswerverifiedShow Answer

Figure 20-5 -Refer to Figure 20-5. An effective minimum wage would be set at a level

Correct AnswerverifiedShow Answer

Correct AnswerverifiedNo, she would have $...View AnswerShow Answer

Correct AnswerverifiedShow Answer

Minimum wage laws

Correct AnswerverifiedShow Answer

A government's policy of redistributing income makes the income distribution

Correct AnswerverifiedShow Answer

Table 20-9 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 20-9. Which of the following statements best describes the trends in the table?

Correct AnswerverifiedShow Answer

With a minimum wage law, the workers who remain employed benefit from a .

Correct AnswerverifiedShow Answer

The United States has a more equal income distribution than many developing economies such as Mexico, South Africa, and Brazil.

Correct AnswerverifiedShow Answer

Economic mobility refers to the

Correct AnswerverifiedShow Answer

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It would d...
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No, she would have $...
View Answer

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