Question 1

The table shows the distributions of market income and money income in the United States in 2007.
 
-According to the table above, ________ percent of total income is redistributed from the highest income group.

Accepted Answer

A)   4.7
B)   2.3
C)   1.5
D)   3.8E) B) and D)
F) B) and C)

Question 2

Median household income in the United States has increased from $38,771 in 1967 to $59,036 in 2016. Based only on this fact, we can conclude that

Accepted Answer

A)   Inequality is increasing in the United States.
B)   Inequality is decreasing in the United States.
C)   Inequality is not changing in the United States.
D)   We cannot conclude anything about inequality in the United States without more information.E) C) and D)
F) A) and D)

Question 3

Income (percent of total)
 
-The table shows income distributions in the United States and Canada in a recent year.
a) Draw a Lorenz curve for the United States. According to your graph, what is the percentage of income received by the poorest 30 percent of households? The richest 10 percent?
b) On the same graph, draw a Lorenz curve for Canada. According to your graph, what is the percentage of income received by the poorest 30 percent of households? The richest 10 percent?
c) Draw the line of equality. How is it related to the Lorenz curve?
d) Is income distributed more equally in the United States or in Canada? Which country's Gini ratio is closer to zero? Explain your answers.

Accepted Answer

<img  loading="lazy" src="/assets/images/blured-textbook.svg" class="d-inline m-1" alt="blured image" width="139" height="30"> a) See the figure above. The percentage...

Question 4

A tax is progressive if the average tax rate

Accepted Answer

A)   increases as income increases.
B)   increases as income decreases.
C)   is negative.
D)   is positive.E) B) and D)
F) A) and C)

Question 5

-In the above figure, if the Lorenz curve were to move closer to the diagonal line containing points b and c, the income distribution would be

Accepted Answer

A)   more unequal.
B)   more equal.
C)   unchanged.
D)   More information is needed to determine how this change would affect the income distribution.E) All of the above
F) A) and B)

Question 6

By human capital, economists mean

Accepted Answer

A)   machines that replace humans.
B)   machines engineered to avoid operator injury.
C)   the accumulated skill and knowledge of humans.
D)   humans who perform repetitive tasks.E) None of the above
F) C) and D)

Question 7

-The above figure shows the Lorenz curves for four different countries. Which of the following statements CANNOT be made on the basis of the graph?

Accepted Answer

A)   Incomes are distributed unequally in all four countries.
B)   Income distribution in country D is the most unequal among the four countries.
C)   Incomes are higher in country A than in country B.
D)   Income distribution is more equal in country B than in country D.E) B) and C)
F) C) and D)

Question 8

What is "human capital"? How is it important in the determination of a worker's wage rate?

Accepted Answer

Human capital is the skill, education, a...

Question 9

-In the above figure, point ________ shows an equal distribution of income, while point ________ shows an unequal distribution of income.

Accepted Answer

A)   a, b
B)   b, c
C)   b, a
D)   a, dE) None of the above
F) B) and C)

Question 10

Which of the following is an example of a subsidized service?

Accepted Answer

A)   Social Security payments to retirees
B)   Social Security payments to widows
C)   welfare payments to the unemployed
D)   Medicare reimbursements to hospitalsE) B) and D)
F) A) and B)

Question 11

-In the figure above, the quantity of high-skilled labor employed is

Accepted Answer

A)   2,000 hours per day.
B)   4,000 hours per day.
C)   5,000 hours per day.
D)   7,000 hours per day.E) B) and D)
F) None of the above

Exam 19: Economic Inequality

-In the figure above, the quantity of high-skilled labor employed is

Correct Answer
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a) See the figure above. The percentage...
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A tax is progressive if the average tax rate

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Median household income in the United States has increased from $38,771 in 1967 to $59,036 in 2016. Based only on this fact, we can conclude that

Correct Answer
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The table shows the distributions of market income and money income in the United States in 2007. -According to the table above, ________ percent of total income is redistributed from the highest income group.

Correct Answer
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-In the above figure, if the Lorenz curve were to move closer to the diagonal line containing points b and c, the income distribution would be

Correct Answer
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By human capital, economists mean

Correct Answer
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-The above figure shows the Lorenz curves for four different countries. Which of the following statements CANNOT be made on the basis of the graph?

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-In the above figure, point shows an equal distribution of income, while point shows an unequal distribution of income.

Correct Answer
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What is "human capital"? How is it important in the determination of a worker's wage rate?

Correct Answer
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Human capital is the skill, education, a...
View Answer

Which of the following is an example of a subsidized service?

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Exam 19: Economic Inequality

-In the figure above, the quantity of high-skilled labor employed is

Correct AnswerverifiedShow Answer

Correct Answerverified a) See the figure above. The percentage...View AnswerShow Answer

A tax is progressive if the average tax rate

Correct AnswerverifiedShow Answer

Median household income in the United States has increased from $38,771 in 1967 to $59,036 in 2016. Based only on this fact, we can conclude that

Correct AnswerverifiedShow Answer

The table shows the distributions of market income and money income in the United States in 2007. -According to the table above, ________ percent of total income is redistributed from the highest income group.

Correct AnswerverifiedShow Answer

-In the above figure, if the Lorenz curve were to move closer to the diagonal line containing points b and c, the income distribution would be

Correct AnswerverifiedShow Answer

By human capital, economists mean

Correct AnswerverifiedShow Answer

-The above figure shows the Lorenz curves for four different countries. Which of the following statements CANNOT be made on the basis of the graph?

Correct AnswerverifiedShow Answer

-In the above figure, point ________ shows an equal distribution of income, while point ________ shows an unequal distribution of income.

Correct AnswerverifiedShow Answer

What is "human capital"? How is it important in the determination of a worker's wage rate?

Correct AnswerverifiedHuman capital is the skill, education, a...View AnswerShow Answer

Which of the following is an example of a subsidized service?

Correct AnswerverifiedShow Answer

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a) See the figure above. The percentage...
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-In the above figure, point shows an equal distribution of income, while point shows an unequal distribution of income.

Correct Answer
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Correct Answer
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Human capital is the skill, education, a...
View Answer

Correct Answer
verified