Quiz 22

B

Because economic discrimination arbitrarily blocks women and minorities from higher productivity jobs, discrimination: A) creates inflation B) reduces overall productivity C) redistributes income but does not reduce it overall D) moves an economy downward along its production possibilities frontier

A

Compared to annual income, lifetime incomes exhibit: A) less inequality, reflecting substantial income mobility B) more inequality, reflecting substantial income mobility C) more inequality, reflecting very little income mobility D) about the same inequality, reflecting very little income mobility

B

In 2011, approximately how much income was required for a household to reach the highest quintile? A) $48,000 B) $100,000 C) $176,000 D) $475,000

B

In 2011, the share of income accruing to households in the bottom quintike was: A) less than 1% B) between 3% and 4% C) larger than it was in 1970 D) the same as the share of income accruing to household in the middle quintile

B

One can make a logical case for redistributing income from rich to poor by arguing that: A) the total utility of income for the rich exceeds that of the poor B) the marginal utility of income for the poor exceeds that of the rich C) income redistrubution increases the incentives to work D) income redistrubution helps to fill up poor persons leaky buckets

D

Reguarding the effect of taxes and transfer payments on the U.S. income distribution, data indicate that: A) there is virtually no impact B) the progressive tax system accounts for over half of the reductiin in income inequality C) tax rebates and credits account for over half of the income of those in the lowest quintile D) most of the reduction in income inequality is attributable to transfer payments

D

Since 1970, the U.S. distribution of income has: A) remained essentially the same, although the distribution of wealth has become substantially more unequal B) exhibited a substantial decrease in income mobility C) become less unequal, partlyowing to the falling returns from education D) become more unequal, partly owing to increased demand for highly skilled workers

$160,000

Suppose society consists of 5 families whose income are $8,000 $12,000 $20,000 $40,000 and $80,000 What is the total income jn this society?

7.5%, 12.5%, 25%

Suppose society consists of 5 families whose income are $8,000 $12,000 $20,000 $40,000 and $80,000 What percentage of total income are recieved by the second, third, and fourth quintiles?

5%

Suppose society consists of 5 families whose income are $8,000 $12,000 $20,000 $40,000 and $80,000 What percentage of total income is earned by the poorest quintile?

50%

Suppose society consists of 5 families whose income are $8,000 $12,000 $20,000 $40,000 and $80,000 What percentage of total income us earned by the richest quintile?

C

Suppose the economy income distribution is represented by line b. An increase in income inequality would be represented by a movement: A) to line a B) up and to the right along line b C) to line c D) down and to the left along line b

C

Which of the following is the basic welfare program for low-income families in the U.S? A) OASDHI B) SSI C) TANF D) EITC