Question 1

According to the statistics, the distribution of money income:

Accepted Answer

A)   fluctuated widely since 1947.
B)   changed significantly in favor of the bottom 5 percent.
C)   has not changed greatly since 1947.
D)   has not changed greatly since 1929.E) A) and B)
F) All of the above

Question 2

Exhibit 12-6 Lorenz curves 
-Exhibit 12-6 shows the Lorenz Curve for three countries, I, II, and III. Of the three countries shown,

Accepted Answer

A)   Country III has the most unequal income distribution.
B)   Country II has the most unequal income distribution.
C)   Country I has the most unequal income distribution.
D)   Country III has the most equal income distribution.
E)   Country II has a more equal income distribution than Country I.F) A) and D)
G) A) and C)

Question 3

Exhibit 12-3 Lorenz curve for an economy 
-According to the Lorenz curve shown in Exhibit 12-3, what percentage of total income is earned by the richest 20 percent of families?

Accepted Answer

A)   20 percent.
B)   40 percent.
C)   60 percent.
D)   80 percent.E) B) and D)
F) C) and D)

Question 4

Wage discrimination means workers with equal productivity are paid unequal wages, or workers with unequal productivity are paid equal wages.

Accepted Answer

A) True 
 B)False

Question 5

Food stamps and Medicaid are in-kind transfer programs.

Accepted Answer

A) True 
 B)False

Question 6

After 1929 in the United States, as measured by the Lorenz curve, income inequality:

Accepted Answer

A)   increased sharply.
B)   remain unchanged.
C)   declined.
D)   increased.E) B) and C)
F) C) and D)

Question 7

Which of the following might increase the supply curve of labor?

Accepted Answer

A)   Elimination of discrimination against blacks.
B)   Elimination of discrimination against females.
C)   Easing licensing requirements.
D)   All of these.E) None of the above
F) All of the above

Question 8

Exhibit 12-4 Lorenz curve 
-As shown in Exhibit 12-4, 40 percent of families earned a cumulative share of about ____ percent of income.

Accepted Answer

A)   5
B)   15
C)   30
D)   50E) C) and D)
F) A) and B)

Question 9

Medicaid is an example of a cash assistance poverty program.

Accepted Answer

A) True 
 B)False

Question 10

When the Lorenz curve lies above the diagonal,

Accepted Answer

A)   the poorest 20 percent of the population receive more than 20 percent of income.
B)   the richest 20 percent of the population receive more than 20 percent of income.
C)   everyone receives the same income.
D)   the country's income has been rising over time.
E)   it is wrong since it is impossible for the graph to look like this.F) B) and C)
G) A) and B)

Question 11

Consider a law that limits women's access to certain "dangerous" occupations like coal mining and military combat service. Such a law would likely reduce women's wages because:

Accepted Answer

A)   women would be overqualified for "non-dangerous" jobs.
B)   labor supply in female-intensive occupations would increase.
C)   women would be less likely to obtain college degrees.
D)   comparable worth would no longer exist between men's and women's occupations.E) B) and C)
F) None of the above

Question 12

If official U.S. poverty statistics included in-kind transfer payments the:

Accepted Answer

A)   poverty rate would be close to zero.
B)   poverty rate would be lower.
C)   government deficit would be lower.
D)   top 10 percent of those in the income distribution would be wealthier.E) A) and D)
F) All of the above

Question 13

Exhibit 12-1 Income distribution for three countries   Quintile  Country I (%)   Country II (%)   Country III (%)   Poorest 684 Second 12128 Third 151510 Fourth 273030 Richest 403548\begin{array} { | l | c | c | c | } \hline 	ext { Quintile } & 	ext { Country I (\%)  } & 	ext { Country II (\%)  } & 	ext { Country III (\%)  } \\hline	ext { Poorest } & 6 & 8 & 4 \	ext { Second } & 12 & 12 & 8 \	ext { Third } & 15 & 15 & 10 \	ext { Fourth } & 27 & 30 & 30 \	ext { Richest } & 40 & 35 & 48 \\hline\end{array} Quintile  Poorest  Second  Third  Fourth  Richest ​ Country I (%)  612152740​ Country II (%)  812153035​ Country III (%)  48103048​​ 
-Exhibit 12-1 shows the percentage of income received by each population quintile. From this chart we can conclude:

Accepted Answer

A)   Country I has the most unequal income distribution.
B)   Country III has the most equal income distribution.
C)   Country II has the most unequal income distribution.
D)   Country II has the most equal income distribution.
E)   Country III has a more equal income distribution than Country II. F) A) and B)
G) B) and E)

Question 14

The distribution of income has become more equal since 1929.

Accepted Answer

A) True 
 B)False

Question 15

The U.S. Lorenz curve today is closer to the perfect equality line than in 1929.

Accepted Answer

A) True 
 B)False

Question 16

Using the Lorenz curve, the degree of income inequality is measured by the:

Accepted Answer

A)   line connecting all points for which a given percentage of families receives exactly that cumulative percentage of income.
B)   distance of the Lorenz curve from the line of perfect equality.
C)   flat diagonal line that applies to a perfectly elastic demand curve.
D)   number of times the Lorenz curve crosses the line of perfect equality.E) B) and C)
F) None of the above

Question 17

The poorest 20 percent of the U.S. population received approximately ____ of total income.

Accepted Answer

A)   5 percent
B)   10 percent
C)   15 percent
D)   20 percentE) B) and C)
F) A) and D)

Question 18

Some people believe that employees should be paid the same wages when their jobs, although different, require similar levels of education, training, experience, and responsibility. This principle is known as:

Accepted Answer

A)   the equal-pay-for-equal work doctrine.
B)   Lorenz equivalence.
C)   marginal productivity theory.
D)   comparable worth.E) A) and B)
F) A) and C)

Question 19

Discrimination lowers the average wage of members of one group of workers in spite of laws that require equal pay for all workers.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following countries has the most unequal distribution of income?

Accepted Answer

A)   The United States.
B)   Czech Republic.
C)   Brazil.
D)   cannot be determined.E) All of the above
F) A) and C)

Exam 12: Income Distribution, Poverty, and Discrimination

Correct Answer
verified

Some people believe that employees should be paid the same wages when their jobs, although different, require similar levels of education, training, experience, and responsibility. This principle is known as:

Correct Answer
verified

Medicaid is an example of a cash assistance poverty program.

Correct Answer
verified

Discrimination lowers the average wage of members of one group of workers in spite of laws that require equal pay for all workers.

Correct Answer
verified

Exhibit 12-6 Lorenz curves -Exhibit 12-6 shows the Lorenz Curve for three countries, I, II, and III. Of the three countries shown,

Correct Answer
verified

Consider a law that limits women's access to certain "dangerous" occupations like coal mining and military combat service. Such a law would likely reduce women's wages because:

Correct Answer
verified

According to the statistics, the distribution of money income:

Correct Answer
verified

Exhibit 12-3 Lorenz curve for an economy -According to the Lorenz curve shown in Exhibit 12-3, what percentage of total income is earned by the richest 20 percent of families?

Correct Answer
verified

Wage discrimination means workers with equal productivity are paid unequal wages, or workers with unequal productivity are paid equal wages.

Correct Answer
verified

The poorest 20 percent of the U.S. population received approximately ____ of total income.

Correct Answer
verified

When the Lorenz curve lies above the diagonal,

Correct Answer
verified

Which of the following might increase the supply curve of labor?

Correct Answer
verified

The distribution of income has become more equal since 1929.

Correct Answer
verified

Food stamps and Medicaid are in-kind transfer programs.

Correct Answer
verified

Using the Lorenz curve, the degree of income inequality is measured by the:

Correct Answer
verified

If official U.S. poverty statistics included in-kind transfer payments the:

Correct Answer
verified

After 1929 in the United States, as measured by the Lorenz curve, income inequality:

Correct Answer
verified

Exhibit 12-4 Lorenz curve -As shown in Exhibit 12-4, 40 percent of families earned a cumulative share of about ____ percent of income.

Correct Answer
verified

The U.S. Lorenz curve today is closer to the perfect equality line than in 1929.

Correct Answer
verified

Which of the following countries has the most unequal distribution of income?

Correct Answer
verified

Exam 12: Income Distribution, Poverty, and Discrimination

Correct AnswerverifiedShow Answer

Some people believe that employees should be paid the same wages when their jobs, although different, require similar levels of education, training, experience, and responsibility. This principle is known as:

Correct AnswerverifiedShow Answer

Medicaid is an example of a cash assistance poverty program.

Correct AnswerverifiedShow Answer

Discrimination lowers the average wage of members of one group of workers in spite of laws that require equal pay for all workers.

Correct AnswerverifiedShow Answer

Exhibit 12-6 Lorenz curves -Exhibit 12-6 shows the Lorenz Curve for three countries, I, II, and III. Of the three countries shown,

Correct AnswerverifiedShow Answer

Consider a law that limits women's access to certain "dangerous" occupations like coal mining and military combat service. Such a law would likely reduce women's wages because:

Correct AnswerverifiedShow Answer

According to the statistics, the distribution of money income:

Correct AnswerverifiedShow Answer

Exhibit 12-3 Lorenz curve for an economy -According to the Lorenz curve shown in Exhibit 12-3, what percentage of total income is earned by the richest 20 percent of families?

Correct AnswerverifiedShow Answer

Wage discrimination means workers with equal productivity are paid unequal wages, or workers with unequal productivity are paid equal wages.

Correct AnswerverifiedShow Answer

The poorest 20 percent of the U.S. population received approximately ____ of total income.

Correct AnswerverifiedShow Answer

When the Lorenz curve lies above the diagonal,

Correct AnswerverifiedShow Answer

Which of the following might increase the supply curve of labor?

Correct AnswerverifiedShow Answer

The distribution of income has become more equal since 1929.

Correct AnswerverifiedShow Answer

Food stamps and Medicaid are in-kind transfer programs.

Correct AnswerverifiedShow Answer

Using the Lorenz curve, the degree of income inequality is measured by the:

Correct AnswerverifiedShow Answer

If official U.S. poverty statistics included in-kind transfer payments the:

Correct AnswerverifiedShow Answer

After 1929 in the United States, as measured by the Lorenz curve, income inequality:

Correct AnswerverifiedShow Answer

Exhibit 12-4 Lorenz curve -As shown in Exhibit 12-4, 40 percent of families earned a cumulative share of about ____ percent of income.

Correct AnswerverifiedShow Answer

The U.S. Lorenz curve today is closer to the perfect equality line than in 1929.

Correct AnswerverifiedShow Answer

Which of the following countries has the most unequal distribution of income?

Correct AnswerverifiedShow Answer

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