Question 1

Using the graph drawn above, what could occur if:
i) a government that advocates a flat tax rate to the income distribution.
ii) a government advocates a proportional tax where there are more tax brackets.

Accepted Answer

i) It would resemble...

Question 2

According to utilitarians, the government should continue to redistribute income until everyone in society has exactly the same income.

Accepted Answer

A) True 
 B)False

Question 3

Using demand-supply analysis, show why some economists argue that an effective minimum wage will result in higher unemployment among those groups of workers affected by the minimum wage.

Accepted Answer

Before imposing a minimum wage, the quan...

Question 4

Outline the possible work disincentives created by anti-poverty programs. Is there a way to solve this problem without causing other forms of inefficiency to arise? Explain your answer.

Accepted Answer

A high marginal tax rate exists on welfa...

Question 5

What is meant by a perfectly equal distribution of income? Use a graph to depict such a situation.

Accepted Answer

If income were equally distributed acros...

Question 6

For most government programs that are designed to help the poor:

Accepted Answer

A)   being poor is typically sufficient to qualify for assistance
B)   being poor, by itself, is typically not sufficient to qualify for assistance
C)   the poor may not receive assistance because the poverty line varies so much that it makes them difficult to identify
D)   recipients of government assistance are often declared ineligible to receive assistance from private sourcesE) B) and C)
F) None of the above

Question 7

Amy currently earns $80 000 a year, while John earns $30 000 a year. Suppose that both of their incomes are subject to diminishing marginal utility. From a utilitarian perspective taking a dollar from Amy and giving it to John will:

Accepted Answer

A)   lower Amy's marginal utility of income
B)   increase John's marginal utility of income
C)   increase society's total utility
D)   do none of the aboveE) A) and B)
F) A) and C)

Question 8

Although economic growth has raised the income of the typical family, the increase in inequality has prevented the poorest families from sharing in this greater economic prosperity.

Accepted Answer

A) True 
 B)False

Question 9

Opponents of legislation that proposes to limit the time a family can receive welfare benefits are most likely to argue that time limits are undesirable because:

Accepted Answer

A)   children will become innocent victims if parents are forced off welfare
B)   the money saved will be diverted to defence spending
C)   long periods on welfare erode work skills
D)   there is no evidence to suggest a pattern of welfare dependencyE) All of the above
F) A) and B)

Question 10

The maximin criterion holds that public policies should aim to minimise the well-being of the most-fortunate person in society.

Accepted Answer

A) True 
 B)False

Question 11

A libertarian is likely to argue that:

Accepted Answer

A)   only individual members of society can earn income
B)   outcomes always dominate processes
C)   society is responsible for ensuring an equal distribution of income
D)   government has no role in the economyE) B) and D)
F) All of the above

Exam 21: Income Inequity and Poverty

Amy currently earns $80 000 a year, while John earns $30 000 a year. Suppose that both of their incomes are subject to diminishing marginal utility. From a utilitarian perspective taking a dollar from Amy and giving it to John will:

Correct Answer
verified

Using the graph drawn above, what could occur if: i) a government that advocates a flat tax rate to the income distribution. ii) a government advocates a proportional tax where there are more tax brackets.

Correct Answer
verified
i) It would resemble...
View Answer

The maximin criterion holds that public policies should aim to minimise the well-being of the most-fortunate person in society.

Correct Answer
verified

A libertarian is likely to argue that:

Correct Answer
verified

Using demand-supply analysis, show why some economists argue that an effective minimum wage will result in higher unemployment among those groups of workers affected by the minimum wage.

Correct Answer
verified
Before imposing a minimum wage, the quan...
View Answer

What is meant by a perfectly equal distribution of income? Use a graph to depict such a situation.

Correct Answer
verified
If income were equally distributed acros...
View Answer

Outline the possible work disincentives created by anti-poverty programs. Is there a way to solve this problem without causing other forms of inefficiency to arise? Explain your answer.

Correct Answer
verified
A high marginal tax rate exists on welfa...
View Answer

For most government programs that are designed to help the poor:

Correct Answer
verified

According to utilitarians, the government should continue to redistribute income until everyone in society has exactly the same income.

Correct Answer
verified

Although economic growth has raised the income of the typical family, the increase in inequality has prevented the poorest families from sharing in this greater economic prosperity.

Correct Answer
verified

Opponents of legislation that proposes to limit the time a family can receive welfare benefits are most likely to argue that time limits are undesirable because:

Correct Answer
verified

Exam 21: Income Inequity and Poverty

Amy currently earns $80 000 a year, while John earns $30 000 a year. Suppose that both of their incomes are subject to diminishing marginal utility. From a utilitarian perspective taking a dollar from Amy and giving it to John will:

Correct AnswerverifiedShow Answer

Using the graph drawn above, what could occur if: i) a government that advocates a flat tax rate to the income distribution. ii) a government advocates a proportional tax where there are more tax brackets.

Correct Answerverifiedi) It would resemble...View AnswerShow Answer

The maximin criterion holds that public policies should aim to minimise the well-being of the most-fortunate person in society.

Correct AnswerverifiedShow Answer

A libertarian is likely to argue that:

Correct AnswerverifiedShow Answer

Using demand-supply analysis, show why some economists argue that an effective minimum wage will result in higher unemployment among those groups of workers affected by the minimum wage.

Correct AnswerverifiedBefore imposing a minimum wage, the quan...View AnswerShow Answer

What is meant by a perfectly equal distribution of income? Use a graph to depict such a situation.

Correct AnswerverifiedIf income were equally distributed acros...View AnswerShow Answer

Outline the possible work disincentives created by anti-poverty programs. Is there a way to solve this problem without causing other forms of inefficiency to arise? Explain your answer.

Correct AnswerverifiedA high marginal tax rate exists on welfa...View AnswerShow Answer

For most government programs that are designed to help the poor:

Correct AnswerverifiedShow Answer

According to utilitarians, the government should continue to redistribute income until everyone in society has exactly the same income.

Correct AnswerverifiedShow Answer

Although economic growth has raised the income of the typical family, the increase in inequality has prevented the poorest families from sharing in this greater economic prosperity.

Correct AnswerverifiedShow Answer

Opponents of legislation that proposes to limit the time a family can receive welfare benefits are most likely to argue that time limits are undesirable because:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
i) It would resemble...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Before imposing a minimum wage, the quan...
View Answer

Correct Answer
verified
If income were equally distributed acros...
View Answer

Correct Answer
verified
A high marginal tax rate exists on welfa...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified