Question 1

A particular woman is denied on-the-job training because women on average are more likely to drop out of the workforce than men.This illustrates

Accepted Answer

A)  occupational segregation.
B)  the crowding model.
C)  the taste-for-discrimination model.
D)  statistical discrimination.E) A) and B)
F) A) and C)

Question 2

As the area between the Lorenz curve and diagonal gets larger, the Gini ratio

Accepted Answer

A)  rises to reflect greater equality.
B)  rises to reflect greater inequality.
C)  falls to reflect greater inequality.
D)  falls to reflect greater equality.E) A) and B)
F) A) and C)

Question 3

Which of the following would be a significant cause of income inequality in the United States?

Accepted Answer

A)  housing
B)  discrimination
C)  in-kind transfers
D)  Social SecurityE) B) and C)
F) None of the above B

Question 4

Income mobility

Accepted Answer

A)  contributes to greater wealth inequality in the United States.
B)  is less in the United States than in most developing nations.
C)  is the movement of individuals and households from one income quintile to another over time.
D)  makes lifetime income inequality among income receivers in the United States greater than income inequality in any single year.E) A) and B)
F) B) and C)

Question 5

In statistical discrimination,

Accepted Answer

A)  the average characteristics of the group are applied to individual members.
B)  the characteristics of individual members of a group are applied to describe the group as a whole.
C)  hiring characteristics for workers are based on set government requirements
D)  workers are given preferential treatment if they help fulfill a quota for a particular type of characteristic.E) B) and D)
F) A) and D)

Question 6

Statistical discrimination

Accepted Answer

A)  can persist in the long run if differences in average characteristics among groups continue.
B)  will tend to diminish in the long run because nondiscriminating firms will drive out discriminating firms.
C)  requires that employers have discrimination coefficients greater than zero.
D)  is also known as occupational segregation.E) A) and B)
F) A) and C)

Question 7

Poverty is a condition where a person or family does not have the means to

Accepted Answer

A)  satisfy all wants.
B)  save enough for the future.
C)  earn a stable income.
D)  meet basic needs.E) A) and D)
F) B) and C)

Question 8

From 1995 to 2007 in the U.S., the median and average family wealth adjusted for inflation both

Accepted Answer

A)  increased rapidly but fell sharply from 2007 to 2013.
B)  stayed roughly the same, then rose from 2007 to 2013.
C)  stayed at about the same level, then fell sharply from 2007 to 2013.
D)  increased slowly, then accelerated from 2007 to 2013.E) All of the above
F) B) and D)

Question 9

(Consider This)  The main focus of the vignette "Slicing the Pizza" is the

Accepted Answer

A)  equality-efficiency trade-off.
B)  principal-agent problem.
C)  impact of market power on economic efficiency.
D)  the highly unequal distribution of U.S.wealth.E) A) and B)
F) None of the above

Question 10

The Lorenz curve portrays

Accepted Answer

A)  the functional distribution of income.
B)  the ratio of labor to capitalist income.
C)  the personal distribution of income.
D)  income equality.E) B) and C)
F) A) and D)

Question 11

Currently over 90 percent of all workers in the United States are covered by Social Security.

Accepted Answer

A) True 
 B)False

Question 12

The highest quintile of households in the income distribution (as of 2014)

Accepted Answer

A)  receives about 51 percent of the total income.
B)  comprises 10 percent of all households.
C)  comprises 5 percent of all households.
D)  receives about 43 percent of the total income.E) A) and D)
F) B) and C)

Question 13

Which of the following employers is the most prejudiced? Employer

Accepted Answer

A)  A, whose d is $0.
B)  B, whose d is $2.
C)  C, whose d is $4.
D)  D, whose d is $6.E) A) and D)
F) All of the above

Question 14

The crowding model of occupational segregation shows how white males earn higher incomes at the expense of women and minorities who are restricted to a limited number of occupations.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is a noncash transfer?

Accepted Answer

A)  a payment to a divorced mother under TANF
B)  SNAP (food stamps) 
C)  a Social Security payment to a retiree
D)  unemployment compensation benefitsE) A) and D)
F) A) and C) B

Question 16

A kingdom where only the king earns all income would have a Gini ratio of

Accepted Answer

A)  100.
B)  0.
C)  1.
D)  2.E) C) and D)
F) A) and D)

Question 17

Assume that there is a supply and demand market for nonpreferred workers.If prejudice against these workers among employers decreases, then there will be a(n)

Accepted Answer

A)  increased supply of these workers, a rise in their wage rate, and a decrease in their employment.
B)  increased demand for these workers, a rise in their wage rate, and an increase in their employment.
C)  decreased supply of these workers, a fall in their wage rate, and a decrease in their employment.
D)  decreased demand for these workers, a fall in their wage rate, and a decrease in their employment.E) B) and C)
F) C) and D)

Question 18

The Temporary Assistance for Needy Families (TANF) program that replaced the old Aid for Families with Dependent Children welfare program succeeded in reducing the number of welfare recipients and increasing the employment rate among single mothers.

Accepted Answer

A) True 
 B)False

Question 19

Perfect income equality would yield a Gini ratio of

Accepted Answer

A)  2.
B)  1.
C)  0.
D)   0.5E) B) and C)
F) C) and D)

Question 20

The necessity to maintain incentives to work and incentives to produce output would be a point made by an individual making the case for

Accepted Answer

A)  income equality.
B)  income inequality.
C)  maximizing total utility.
D)  maximizing marginal utility.E) A) and D)
F) B) and C) B

Exam 23: Income Inequality, Poverty, and Discrimination

A particular woman is denied on-the-job training because women on average are more likely to drop out of the workforce than men.This illustrates

Correct AnswerverifiedShow Answer

As the area between the Lorenz curve and diagonal gets larger, the Gini ratio

Correct AnswerverifiedShow Answer

Which of the following would be a significant cause of income inequality in the United States?

Correct AnswerverifiedB

Income mobility

Correct AnswerverifiedShow Answer

In statistical discrimination,

Correct AnswerverifiedShow Answer

Statistical discrimination

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Poverty is a condition where a person or family does not have the means to

Correct AnswerverifiedShow Answer

From 1995 to 2007 in the U.S., the median and average family wealth adjusted for inflation both

Correct AnswerverifiedShow Answer

(Consider This) The main focus of the vignette "Slicing the Pizza" is the

Correct AnswerverifiedShow Answer

The Lorenz curve portrays

Correct AnswerverifiedShow Answer

Currently over 90 percent of all workers in the United States are covered by Social Security.

Correct AnswerverifiedShow Answer

The highest quintile of households in the income distribution (as of 2014)

Correct AnswerverifiedShow Answer

Which of the following employers is the most prejudiced? Employer

Correct AnswerverifiedShow Answer

The crowding model of occupational segregation shows how white males earn higher incomes at the expense of women and minorities who are restricted to a limited number of occupations.

Correct AnswerverifiedShow Answer

Which of the following is a noncash transfer?

Correct AnswerverifiedB

A kingdom where only the king earns all income would have a Gini ratio of

Correct AnswerverifiedShow Answer

Assume that there is a supply and demand market for nonpreferred workers.If prejudice against these workers among employers decreases, then there will be a(n)

Correct AnswerverifiedShow Answer

The Temporary Assistance for Needy Families (TANF) program that replaced the old Aid for Families with Dependent Children welfare program succeeded in reducing the number of welfare recipients and increasing the employment rate among single mothers.

Correct AnswerverifiedShow Answer

Perfect income equality would yield a Gini ratio of

Correct AnswerverifiedShow Answer

The necessity to maintain incentives to work and incentives to produce output would be a point made by an individual making the case for

Correct AnswerverifiedB

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B

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B

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B