Question 1

Which of the following statements applies to the Social Security program?

Accepted Answer

A)   Benefits are paid on the basis of need.
B)   It provides cash assistance and services to families with dependent children.
C)   It is financed by payroll taxes on employees and employers.
D)   Benefit levels vary throughout the nation because the system is administered by the individual states.E) B) and C)
F) None of the above

Question 2

In 2010, the top 1 percent of households in the U.S. owned about what percentage of total wealth in the nation?

Accepted Answer

A)   20
B)   10
C)   35
D)   50E) A) and B)
F) C) and D)

Question 3

The Gini ratio of income inequality ranges between

Accepted Answer

A)   0 and 10,000.
B)   1 and 10.
C)   −1 and +1.
D)   0 and 1.E) None of the above
F) All of the above

Question 4

An example of a social insurance program is , whereas an example of a public assistance program is .

Accepted Answer

A)   Temporary Assistance for Needy Families; unemployment compensation
B)   Supplemental Security Income; unemployment compensation
C)   Social Security; Supplemental Nutrition Assistance Program
D)   Medicaid; MedicareE) A) and B)
F) A) and C)

Question 5

If a prejudiced white employer behaves as if there is a disutility from hiring an African-American worker, then this disutility is measured by the

Accepted Answer

A)   employment coefficient.
B)   discrimination coefficient.
C)   occupational coefficient.
D)   affirmative action coefficient.E) A) and B)
F) None of the above

Question 6

The difference between income and wealth is that income

Accepted Answer

A)   is accumulated, while wealth is earned.
B)   refers to a flow of earnings, while wealth is the stock of assets one has.
C)   is measured at a point in time, while wealth is measured over a period of time.
D)   may not be in cash, while wealth is in cash.E) None of the above
F) A) and B)

Question 7

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 8

The unequal distribution of wealth among households in the United States is one of the causes of income inequality.

Accepted Answer

A) True 
 B)False

Question 9

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

Question 10

For an employer biased against African Americans, the discrimination coefficient d

Accepted Answer

A)   will decrease if the employer becomes more prejudiced against African Americans.
B)   must equal the actual ratio of African-American to white wage rates.
C)   measures the amount an employer is willing to pay to hire a white over hiring an African-American worker.
D)   varies inversely with the actual African-American to white wage ratio.E) A) and D)
F) All of the above

Question 11

Which of the following is not a major complaint about the official income data used in measuring poverty?

Accepted Answer

A)   The income and poverty data are not frequently measured and released.
B)   The income data do not aptly measure purchasing power, especially in major metropolitan areas.
C)   The income data do not adequately measure households' consumption levels.
D)   The income data do not account for noncash transfers and benefits.E) C) and D)
F) None of the above

Question 12

Assume that all workers are equally productive, but the wage rate for men is $12, compared to $9 for women. An employer who employs only male workers must have a discrimination coefficient of

Accepted Answer

A)   more than $3.
B)   at most 0.3.
C)   less than $3.
D)   1.33 or less.E) None of the above
F) A) and B)

Question 13

An employer is prejudiced, prefers to hire white rather than Hispanic workers, and is willing to pay higher wages to obtain white workers. This illustrates

Accepted Answer

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

Question 14

The taste-for-discrimination model examines an employer's prejudice and discrimination in hiring by using tools of

Accepted Answer

A)   demand theory.
B)   theory of costs.
C)   production theory.
D)   profit theory.E) All of the above
F) A) and B)

Question 15

The percentage of the U.S. population living in poverty during the 2000 to 2014 period

Accepted Answer

A)   decreased slightly.
B)   increased.
C)   remained relatively constant.
D)   decreased sharply.E) None of the above
F) A) and B)

Question 16

Which of the following statements about the Temporary Assistance for Needy Families (TANF)  program is not true?

Accepted Answer

A)   It expanded the eligibility for and scope of the nation's welfare program.
B)   It is the basic welfare program for low-income families in the U.S.
C)   In 1996, it replaced the six-decade-old Aid for Families with Dependent Children (AFD
C)   welfare program.
D)   It led to a reduction in the number of welfare recipients and an increase in the employment rate of single mothers in the years after its adoption.E) A) and D)
F) C) and D)

Question 17

The Gini coefficient or ratio is a summary measure of income inequality derived from the Lorenz curve.

Accepted Answer

A) True 
 B)False

Question 18

Of the following groups, which had the highest incidence of poverty in 2014?

Accepted Answer

A)   African Americans
B)   Hispanics
C)   female householders
D)   persons 65 or olderE) A) and B)
F) B) and D)

Question 19

(Consider This)  According to economists Krueger and Perri,

Accepted Answer

A)   although income inequality has increased in recent decades, consumption inequality has remained relatively constant.
B)   increases in income inequality over recent decades understate the growth in consumption inequality.
C)   both income and consumption inequality have increased at approximately the same rate over recent decades.
D)   both income and consumption are more equally distributed than they were 30 years ago.E) B) and C)
F) None of the above

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

If a prejudiced white employer behaves as if there is a disutility from hiring an African-American worker, then this disutility is measured by the

Correct AnswerverifiedShow Answer

Which of the following statements applies to the Social Security program?

Correct AnswerverifiedShow Answer

The percentage of the U.S. population living in poverty during the 2000 to 2014 period

Correct AnswerverifiedShow Answer

An example of a social insurance program is , whereas an example of a public assistance program is .

Correct AnswerverifiedShow Answer

The Gini coefficient or ratio is a summary measure of income inequality derived from the Lorenz curve.

Correct AnswerverifiedShow Answer

In 2010, the top 1 percent of households in the U.S. owned about what percentage of total wealth in the nation?

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

An employer is prejudiced, prefers to hire white rather than Hispanic workers, and is willing to pay higher wages to obtain white workers. This illustrates

Correct AnswerverifiedShow Answer

The unequal distribution of wealth among households in the United States is one of the causes of income inequality.

Correct AnswerverifiedShow Answer

Which of the following statements about the Temporary Assistance for Needy Families (TANF) program is not true?

Correct AnswerverifiedShow Answer

Assume that all workers are equally productive, but the wage rate for men is $12, compared to $9 for women. An employer who employs only male workers must have a discrimination coefficient of

Correct AnswerverifiedShow Answer

The difference between income and wealth is that income

Correct AnswerverifiedShow Answer

Which of the following is not a major complaint about the official income data used in measuring poverty?

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) According to economists Krueger and Perri,

Correct AnswerverifiedShow Answer

Of the following groups, which had the highest incidence of poverty in 2014?

Correct AnswerverifiedShow Answer

The taste-for-discrimination model examines an employer's prejudice and discrimination in hiring by using tools of

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

The Gini ratio of income inequality ranges between

Correct AnswerverifiedShow Answer

For an employer biased against African Americans, the discrimination coefficient d

Correct AnswerverifiedShow Answer

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