Question 1

Suppose that a prejudiced African-American employer has a discrimination coefficient of $5/hour. Suppose also that the market wage rate is $20/hour for African-American workers, and $18/hour for Hispanic workers. In this case, the employer will

Accepted Answer

A)  hire Hispanic workers
B)  not hire Hispanic workers unless their wage rate falls to $5/hour.
C)  not hire Hispanic workers regardless of wage rate.
D)  not hire Hispanic workers unless their wage rate falls to $15/hour.E) A) and D)
F) A) and C)

Question 2

Refer to the figure. The Gini ratio would be 0 for which curve?

Accepted Answer

A)  a
B)  b
C)  c
D)  dE) B) and C)
F) C) and D)

Question 3

Social Security payments are primarily made to assist

Accepted Answer

A)  families with dependent children.
B)  families affected by natural disasters.
C)  retired and disabled workers.
D)  unemployed workers.E) A) and B)
F) B) and D)

Question 4

Housing subsidies for low-income households

Accepted Answer

A)  represent a cash transfer.
B)  are a part of the U.S. social insurance programs.
C)  represent a noncash transfer.
D)  conflict with the leaky-bucket analogy.E) All of the above
F) B) and C)

Question 5

In 2017, the number of TANF recipients

Accepted Answer

A)  was significantly lower than when the program began in 1996.
B)  constituted about 5 percent of the U.S. population.
C)  had risen significantly from the late 1990s.
D)  was significantly lower because of the Tax Cuts and Jobs Act.E) A) and B)
F) A) and C)

Question 6

Assumptions: (1) the labor force comprises 9 million men and 9 million women workers; (2) the economy has 3 occupations, X, Y, and Z, each having identical demand curves for labor; (3) male and female workers are homogeneous with respect to their labor-market capabilities; (4) women are discriminated against by being excluded from occupations X and Y and are confined to Z; and (5) aside from discrimination, the economy is competitive, and workers seek to maximize their earnings.Refer to the diagram and list of assumptions. Under these circumstances 9 million women will be employed in occupation Z,

Accepted Answer

A)  5 million men in X, and 4 million men in Y.
B)  3 million men in X, and 6 million men in Y.
C)  6 million men in X, and 3 million men in Y.
D)  and 4.5 million men each in occupations X and Y.E) None of the above
F) A) and C)

Question 7

What are some measurement issues involved in accurately measuring poverty?

Accepted Answer

The high cost of living in major metropo...

Question 8

A curve showing the quintile distribution of a nation's income is called the Gini curve.

Accepted Answer

A) True 
 B)False

Question 9

Since 1980 the distribution of income has

Accepted Answer

A)  remained virtually constant from year to year.
B)  become more equal.
C)  varied considerably from year to year but in general has been stable.
D)  become less equal.E) B) and D)
F) B) and C)

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

Question 11

Assumptions: (1) the labor force comprises 9 million men and 9 million women workers; (2) the economy has 3 occupations, X, Y, and Z, each having identical demand curves for labor; (3) male and female workers are homogeneous with respect to their labor-market capabilities; (4) women are discriminated against by being excluded from occupations X and Y and are confined to Z; and (5) aside from discrimination, the economy is competitive, and workers seek to maximize their earnings.Refer to the diagram and list of assumptions. If discrimination is ended, women

Accepted Answer

A)  and men will both receive a wage rate of $4.
B)  and men will both receive a wage rate of $5.
C)  and men will both receive a wage rate of $6.
D)  will receive a wage rate of $4 and men will receive a wage rate of $5.E) None of the above
F) A) and B)

Question 12

A Lorenz curve showing perfect equality in the distribution of income

Accepted Answer

A)  coincides with the horizontal axis.
B)  coincides with the vertical axis.
C)  is a straight line with a 45-degree angle.
D)  is a curve bowed to the southwest.E) A) and B)
F) None of the above

Question 13

Which of the following is not one of the causes of the unequal distribution of income in the United States?

Accepted Answer

A)  ability differences
B)  education and training
C)  job preferences and job risks
D)  income taxes and transfersE) B) and C)
F) None of the above

Question 14

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) A) and D)
F) All of the above

Question 15

The wages and salaries that people earn differ partly because of differences in

Accepted Answer

A)  wealth.
B)  ability.
C)  Social Security payments.
D)  in-kind transfer payments.E) B) and C)
F) C) and D)

Question 16

Suppose an employer is biased against African Americans. If his discrimination coefficient is $4, the employer will

Accepted Answer

A)  randomly hire African-American and white workers if the actual African-American-white wage differential is more than $4.
B)  randomly hire African-American and white workers if the actual African-American-white wage differential is less than $4.
C)  hire only African Americans if the actual African-American-white wage differential is less than $4.
D)  hire only African Americans if the actual African-American-white wage differential is more than $4.E) None of the above
F) B) and C)

Question 17

What have been the trends in income inequality since 1980?

Accepted Answer

Over the years, economic growth has rais...

Question 18

Which of the following Gini ratios indicates the highest degree of income inequality?

Accepted Answer

A)  0.71
B)  0.55
C)  0.45
D)  0.31E) A) and D)
F) A) and C)

Question 19

List the various causes of income inequality in the United States.

Accepted Answer

The causes of income inequalit...

Question 20

One basic argument for redistributing income to achieve more equality rests on the idea of maximizing the society's total utility when there is diminishing marginal utility from income.

Accepted Answer

A) True 
 B)False

Exam 23: Income Inequality, Poverty, and Discrimination

Which of the following is not one of the causes of the unequal distribution of income in the United States?

Correct Answer
verified

Refer to the figure. The Gini ratio would be 0 for which curve?

Correct Answer
verified

One basic argument for redistributing income to achieve more equality rests on the idea of maximizing the society's total utility when there is diminishing marginal utility from income.

Correct Answer
verified

Since 1980 the distribution of income has

Correct Answer
verified

Social Security payments are primarily made to assist

Correct Answer
verified

Correct Answer
verified

List the various causes of income inequality in the United States.

Correct Answer
verified
The causes of income inequalit...
View Answer

What are some measurement issues involved in accurately measuring poverty?

Correct Answer
verified
The high cost of living in major metropo...
View Answer

In 2017, the number of TANF recipients

Correct Answer
verified

Housing subsidies for low-income households

Correct Answer
verified

What have been the trends in income inequality since 1980?

Correct Answer
verified
Over the years, economic growth has rais...
View 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 Answer
verified

Suppose an employer is biased against African Americans. If his discrimination coefficient is $4, the employer will

Correct Answer
verified

Suppose that a prejudiced African-American employer has a discrimination coefficient of $5/hour. Suppose also that the market wage rate is $20/hour for African-American workers, and $18/hour for Hispanic workers. In this case, the employer will

Correct Answer
verified

The wages and salaries that people earn differ partly because of differences in

Correct Answer
verified

A Lorenz curve showing perfect equality in the distribution of income

Correct Answer
verified

A curve showing the quintile distribution of a nation's income is called the Gini curve.

Correct Answer
verified

The Lorenz curve portrays

Correct Answer
verified

Correct Answer
verified

Which of the following Gini ratios indicates the highest degree of income inequality?

Correct Answer
verified

Exam 23: Income Inequality, Poverty, and Discrimination

Which of the following is not one of the causes of the unequal distribution of income in the United States?

Correct AnswerverifiedShow Answer

Refer to the figure. The Gini ratio would be 0 for which curve?

Correct AnswerverifiedShow Answer

One basic argument for redistributing income to achieve more equality rests on the idea of maximizing the society's total utility when there is diminishing marginal utility from income.

Correct AnswerverifiedShow Answer

Since 1980 the distribution of income has

Correct AnswerverifiedShow Answer

Social Security payments are primarily made to assist

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

List the various causes of income inequality in the United States.

Correct AnswerverifiedThe causes of income inequalit...View AnswerShow Answer

What are some measurement issues involved in accurately measuring poverty?

Correct AnswerverifiedThe high cost of living in major metropo...View AnswerShow Answer

In 2017, the number of TANF recipients

Correct AnswerverifiedShow Answer

Housing subsidies for low-income households

Correct AnswerverifiedShow Answer

What have been the trends in income inequality since 1980?

Correct AnswerverifiedOver the years, economic growth has rais...View AnswerShow 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

Suppose an employer is biased against African Americans. If his discrimination coefficient is $4, the employer will

Correct AnswerverifiedShow Answer

Suppose that a prejudiced African-American employer has a discrimination coefficient of $5/hour. Suppose also that the market wage rate is $20/hour for African-American workers, and $18/hour for Hispanic workers. In this case, the employer will

Correct AnswerverifiedShow Answer

The wages and salaries that people earn differ partly because of differences in

Correct AnswerverifiedShow Answer

A Lorenz curve showing perfect equality in the distribution of income

Correct AnswerverifiedShow Answer

A curve showing the quintile distribution of a nation's income is called the Gini curve.

Correct AnswerverifiedShow Answer

The Lorenz curve portrays

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following Gini ratios indicates the highest degree of income inequality?

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified
The causes of income inequalit...
View Answer

Correct Answer
verified
The high cost of living in major metropo...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Over the years, economic growth has rais...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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