Question 1

Table 20-14
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 20-14. In 2010, what percentage of total income in the US did the bottom 20% of families have?

Accepted Answer

The answer of Table 20-14
Income Inequality in the United States
The...

Question 2

A typical worker's normal or average income is called

Accepted Answer

A)  the life cycle.
B)  permanent income.
C)  transitory income.
D)  in-kind transfers.E) B) and C)
F) None of the above

Question 3

The poverty line is based on the percentage of people who cannot afford an adequate diet.

Accepted Answer

A) True 
 B)False

Question 4

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 D)
F) B) and C)

Question 5

Scenario 20-7
Suppose the government implemented a negative income tax and used the following formula to compute a family's tax liability:
Taxes owed = (1/6 of income)  - $24,000
-Refer to Scenario 20-7. Below what level of income would families start to receive a subsidy from this negative income tax?

Accepted Answer

A)  $24,000
B)  $50,000
C)  $144,000
D)  $150,000E) None of the above
F) B) and D)

Question 6

Table 20-4  Source: U.S. Bureau of Census
-Refer to Table 20-4. Comparing data from 2000 and 2011, which of the following statements is correct?

Accepted Answer

A)  There has been no change in overall income inequality because the share of income held by the fourth fifth is nearly identical.
B)  Overall income inequality has worsened slightly, as shown by the simultaneous increase in the share of income held by the top fifth and the decrease in the share of income held by the bottom fifth.
C)  Overall income inequality has improved because the share held by the second fifth has declined by 0.5%.
D)  None of the above is correct.E) B) and D)
F) A) and B)

Question 7

Relative to direct cash payments, in-kind transfers have the advantage of being

Accepted Answer

A)  more politically popular.
B)  more efficient.
C)  more respectful of the poor.
D)  of a higher dollar value than cash payments.E) B) and C)
F) A) and D)

Question 8

Medicaid and food stamps are

Accepted Answer

A)  available only to the elderly.
B)  forms of in-kind assistance.
C)  forms of cash assistance.
D)  transfer payments.E) All of the above
F) A) and D)

Question 9

Robert Nozick criticizes Rawls's concept of justice by using an example of

Accepted Answer

A)  minimum wage laws.
B)  the grade distribution in a class.
C)  a leaky bucket.
D)  the price of tea in China.E) B) and D)
F) None of the above

Question 10

The 2011 U.S. distribution of income shows that the top 20 percent of families have approximately what share of income?

Accepted Answer

A)  20 percent
B)  35 percent
C)  50 percent
D)  80 percentE) B) and C)
F) A) and B)

Question 11

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) All of the above
F) B) and C)

Question 12

Which of the following statements is correct?

Accepted Answer

A)  A minimum wage law will result in less additional unemployment if labor demand is elastic rather than inelastic.
B)  An in-kind transfer allows a person to use the benefit to purchase whatever they think they need most.
C)  If a tax policy states that taxes owed equal 1/3 of income less $15,000, a person earning $25,000 per year would owe $6,666.67 in taxes.
D)  Welfare reform enacted in 1996 limited the amount of time recipients could stay on welfare.E) C) and D)
F) None of the above

Question 13

A family's ability to buy goods and services depends largely on the family's

Accepted Answer

A)  economic mobility.
B)  place in the economic life cycle.
C)  transitory income.
D)  permanent income.E) B) and D)
F) B) and C)

Question 14

Many economists believe that a family bases its spending decisions on its permanent, or average, income rather than on transitory income.

Accepted Answer

A) True 
 B)False

Question 15

One existing government program that works much like a negative income tax is the Earned Income Tax Credit.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following statements illustrates diminishing marginal utility?

Accepted Answer

A)  An extra dollar of income to a poor person provides that person with more additional utility than does an extra dollar to a rich person.
B)  An extra dollar of income to a poor person provides that person with less additional utility than does an extra dollar to a rich person.
C)  An extra dollar of income to a poor person provides that person with the same additional utility as does an extra dollar to a rich person.
D)  An extra dollar of income to a poor person provides that person with the same total utility as does an extra dollar to a rich person.E) B) and C)
F) A) and B)

Question 17

Government vouchers to purchase food, also known as food stamps, are an example of

Accepted Answer

A)  an in-kind transfer.
B)  life-cycle income.
C)  a negative income tax.
D)  permanent income.E) All of the above
F) None of the above

Question 18

Economists Cox and Alm compared the gap between rich and poor and found that the richest 20% was about 2 times better off than the poorest 20% when they compared what data?

Accepted Answer

consumptio...

Question 19

Raising total utility is the prime objective of which political philosophy?

Accepted Answer

A)  utilitarianism
B)  liberalism
C)  libertarianism
D)  None of the above is correct.E) B) and D)
F) A) and B)

Question 20

Temporary Assistance for Needy Families (TANF) and Supplemental Security Income (SSI) are examples of .

Accepted Answer

The answer of Temporary Assistance for Needy Families (TANF) and...

Exam 20: Income Inequality and Poverty

Government vouchers to purchase food, also known as food stamps, are an example of

Correct Answer
verified

Many economists believe that a family bases its spending decisions on its permanent, or average, income rather than on transitory income.

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

Economists Cox and Alm compared the gap between rich and poor and found that the richest 20% was about 2 times better off than the poorest 20% when they compared what data?

Correct Answer
verified
consumptio...
View Answer

Relative to direct cash payments, in-kind transfers have the advantage of being

Correct Answer
verified

Medicaid and food stamps are

Correct Answer
verified

Correct Answer
verified

The 2011 U.S. distribution of income shows that the top 20 percent of families have approximately what share of income?

Correct Answer
verified

Which of the following statements is correct?

Correct Answer
verified

Temporary Assistance for Needy Families (TANF) and Supplemental Security Income (SSI) are examples of .

Correct Answer
verified

Which of the following statements illustrates diminishing marginal utility?

Correct Answer
verified

Robert Nozick criticizes Rawls's concept of justice by using an example of

Correct Answer
verified

A family's ability to buy goods and services depends largely on the family's

Correct Answer
verified

The poverty line is based on the percentage of people who cannot afford an adequate diet.

Correct Answer
verified

Table 20-14 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 20-14. In 2010, what percentage of total income in the US did the bottom 20% of families have?

Correct Answer
verified

A typical worker's normal or average income is called

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

Table 20-4 Source: U.S. Bureau of Census -Refer to Table 20-4. Comparing data from 2000 and 2011, which of the following statements is correct?

Correct Answer
verified

One existing government program that works much like a negative income tax is the Earned Income Tax Credit.

Correct Answer
verified

Raising total utility is the prime objective of which political philosophy?

Correct Answer
verified

Exam 20: Income Inequality and Poverty

Government vouchers to purchase food, also known as food stamps, are an example of

Correct AnswerverifiedShow Answer

Many economists believe that a family bases its spending decisions on its permanent, or average, income rather than on transitory income.

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

Economists Cox and Alm compared the gap between rich and poor and found that the richest 20% was about 2 times better off than the poorest 20% when they compared what data?

Correct Answerverifiedconsumptio...View AnswerShow Answer

Relative to direct cash payments, in-kind transfers have the advantage of being

Correct AnswerverifiedShow Answer

Medicaid and food stamps are

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The 2011 U.S. distribution of income shows that the top 20 percent of families have approximately what share of income?

Correct AnswerverifiedShow Answer

Which of the following statements is correct?

Correct AnswerverifiedShow Answer

Temporary Assistance for Needy Families (TANF) and Supplemental Security Income (SSI) are examples of .

Correct AnswerverifiedShow Answer

Which of the following statements illustrates diminishing marginal utility?

Correct AnswerverifiedShow Answer

Robert Nozick criticizes Rawls's concept of justice by using an example of

Correct AnswerverifiedShow Answer

A family's ability to buy goods and services depends largely on the family's

Correct AnswerverifiedShow Answer

The poverty line is based on the percentage of people who cannot afford an adequate diet.

Correct AnswerverifiedShow Answer

Table 20-14 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 20-14. In 2010, what percentage of total income in the US did the bottom 20% of families have?

Correct AnswerverifiedShow Answer

A typical worker's normal or average income is called

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

Table 20-4 Source: U.S. Bureau of Census -Refer to Table 20-4. Comparing data from 2000 and 2011, which of the following statements is correct?

Correct AnswerverifiedShow Answer

One existing government program that works much like a negative income tax is the Earned Income Tax Credit.

Correct AnswerverifiedShow Answer

Raising total utility is the prime objective of which political philosophy?

Correct AnswerverifiedShow Answer

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consumptio...
View Answer

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