Question 1

The earned-income tax credit

Accepted Answer

A)   increases the personal income tax liability of low-income working families.
B)   provides a cash payment to low-income working families if their tax credit exceeds their tax liability.
C)   is designed to make labor force employment less attractive.
D)   was eliminated as part of welfare reform in 1996.E) B) and D)
F) A) and B)

Question 2

Based on annual before-tax incomes data from the Bureau of Census, about what percentage of U.S. households had annual incomes of $100,000 or more in 2014?

Accepted Answer

A)   5 percent
B)   10 percent
C)   25 percent
D)   33 percentE) C) and D)
F) None of the above

Question 3

In 2014, about what percentage of U.S. households had annual before-tax incomes of less than $15,000?

Accepted Answer

A)   about 6 percent
B)   about 13 percent
C)   about 25 percent
D)   about 33 percentE) A) and B)
F) A) and C)

Question 4

Each of the following contributes to income inequality except

Accepted Answer

A)   differences in ability and training.
B)   differences in job tastes.
C)   differences in wealth ownership.
D)   government transfers.E) B) and C)
F) C) and D)

Question 5

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

Question 6

One main complaint about the official income thresholds used in defining poverty is that they

Accepted Answer

A)   fail to account for the effects of the minimum wage.
B)   have remained fixed for over the past two decades.
C)   include noncash benefits such as food stamps and rent subsidies.
D)   are inadequate to meet basic needs in major metropolitan areas.E) A) and C)
F) B) and C)

Question 7

Differences in the amounts and quality of education and training

Accepted Answer

A)   combine with differences in mental, physical, and aesthetic talents to produce income inequality.
B)   explain none of the income inequality in the United States.
C)   explain nearly all the income inequality in the United States.
D)   have lessened in the United States in the past decade, sharply reducing income inequality.E) A) and C)
F) B) and C)

Question 8

Medicaid

Accepted Answer

A)   helps finance medical expenses for those participating in the TANF and Supplemental Security Income programs.
B)   has been abandoned in favor of privately provided medical insurance.
C)   is a program of medical insurance for the aged and retired.
D)   is a compulsory national health insurance program that only covers preventative medical services.E) All of the above
F) B) and C)

Question 9

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) None of the above
F) A) and D)

Question 10

The U.S. poverty rate for the elderly (65 and over) is higher than for the general population.

Accepted Answer

A) True 
 B)False

Question 11

When the occupational choices of women or minorities are restricted, this results in

Accepted Answer

A)   lower wages for these groups, but has no effect on the efficient allocation of labor resources.
B)   lower wages for these groups, but more efficient allocation of labor resources.
C)   lower wages for these groups and less efficient allocation of labor resources.
D)   higher wages for these groups and more efficient allocation of labor resources.E) A) and B)
F) A) and C)

Question 12

Suppose Gigantic Health Cooperative doesn't hire Mandy Morrison solely because she is a graduate of a particular foreign medical school, which is not known for the high quality of its graduates. Yet Mandy is actually more qualified than the average graduate of American medical schools. This is an example of

Accepted Answer

A)   monopsony exploitation.
B)   human-capital discrimination.
C)   statistical discrimination.
D)   irrational behavior.E) A) and B)
F) A) and C)

Question 13

(Last Word)  Median wealth in the United States in 2013

Accepted Answer

A)   was about the same as in 1995.
B)   had grown by about 8 percent since 1995.
C)   was about $76,000.
D)   was about $84,000.E) All of the above
F) A) and C)

Question 14

As applied to gender discrimination, the crowding model of occupational segregation

Accepted Answer

A)   helps explain why women earn more than men.
B)   predicts that men's wages would fall and women's wages would rise if occupational segregation was eliminated.
C)   predicts that domestic output would decline if occupational segregation was ended.
D)   predicts that competition will eventually totally end discrimination.E) All of the above
F) A) and B)

Question 15

Which of the following would likely reduce income inequality?

Accepted Answer

A)   a reduction in the number of high school dropouts
B)   a reduction in Social Security benefits
C)   greater inequality in the distribution of wealth
D)   more stringent requirements to obtain occupational licensesE) None of the above
F) A) and B)

Question 16

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 D)
F) A) and C)

Question 17

The crowding model of occupational segregation predicts that domestic output will increase if occupational segregation is ended.

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

In the United States since 1975, the poor have gotten poorer and the rich have gotten richer in both relative and absolute terms.

Accepted Answer

A) True 
 B)False

Question 20

The Temporary Assistance for Needy Families (TANF) program expanded welfare benefits and has no limit on the number of years for receiving welfare benefits.

Accepted Answer

A) True 
 B)False

Exam 23: Income Inequality, Poverty, and Discrimination

Correct Answer
verified

Each of the following contributes to income inequality except

Correct Answer
verified

Medicaid

Correct Answer
verified

The Lorenz curve portrays

Correct Answer
verified

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

Correct Answer
verified

When the occupational choices of women or minorities are restricted, this results in

Correct Answer
verified

Based on annual before-tax incomes data from the Bureau of Census, about what percentage of U.S. households had annual incomes of $100,000 or more in 2014?

Correct Answer
verified

Differences in the amounts and quality of education and training

Correct Answer
verified

Which of the following would likely reduce income inequality?

Correct Answer
verified

In the United States since 1975, the poor have gotten poorer and the rich have gotten richer in both relative and absolute terms.

Correct Answer
verified

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

Correct Answer
verified

The U.S. poverty rate for the elderly (65 and over) is higher than for the general population.

Correct Answer
verified

The earned-income tax credit

Correct Answer
verified

The crowding model of occupational segregation predicts that domestic output will increase if occupational segregation is ended.

Correct Answer
verified

One main complaint about the official income thresholds used in defining poverty is that they

Correct Answer
verified

(Last Word) Median wealth in the United States in 2013

Correct Answer
verified

In 2014, about what percentage of U.S. households had annual before-tax incomes of less than $15,000?

Correct Answer
verified

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

Correct Answer
verified

As applied to gender discrimination, the crowding model of occupational segregation

Correct Answer
verified

The Temporary Assistance for Needy Families (TANF) program expanded welfare benefits and has no limit on the number of years for receiving welfare benefits.

Correct Answer
verified

Exam 23: Income Inequality, Poverty, and Discrimination

Correct AnswerverifiedShow Answer

Each of the following contributes to income inequality except

Correct AnswerverifiedShow Answer

Medicaid

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

When the occupational choices of women or minorities are restricted, this results in

Correct AnswerverifiedShow Answer

Based on annual before-tax incomes data from the Bureau of Census, about what percentage of U.S. households had annual incomes of $100,000 or more in 2014?

Correct AnswerverifiedShow Answer

Differences in the amounts and quality of education and training

Correct AnswerverifiedShow Answer

Which of the following would likely reduce income inequality?

Correct AnswerverifiedShow Answer

In the United States since 1975, the poor have gotten poorer and the rich have gotten richer in both relative and absolute terms.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The U.S. poverty rate for the elderly (65 and over) is higher than for the general population.

Correct AnswerverifiedShow Answer

The earned-income tax credit

Correct AnswerverifiedShow Answer

The crowding model of occupational segregation predicts that domestic output will increase if occupational segregation is ended.

Correct AnswerverifiedShow Answer

One main complaint about the official income thresholds used in defining poverty is that they

Correct AnswerverifiedShow Answer

(Last Word) Median wealth in the United States in 2013

Correct AnswerverifiedShow Answer

In 2014, about what percentage of U.S. households had annual before-tax incomes of less than $15,000?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

As applied to gender discrimination, the crowding model of occupational segregation

Correct AnswerverifiedShow Answer

The Temporary Assistance for Needy Families (TANF) program expanded welfare benefits and has no limit on the number of years for receiving welfare benefits.

Correct AnswerverifiedShow Answer

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