Ch 15

When an act of charity

An incentive, Self sufficient, Samaritan dilemma, Employment searches

Match each of the following term with the phenomenon

A software- efficeny wages, A worker- life cycle wage patern, A group of - Strike, A local hospital - occupational crowding

Helena owns a clothing boutique and pays each of her four employees a base salary of $3,000 per month. In addition, Helena gives a $3,000 bonus to the employee with the highest sales that month. This is an example of efficiency wages.

false

Welfare is a government

False

Suppose that income earners in the top 20% of a certain nation earn an average of $120,000 per year and that the income inequality ratio is 8. How much do workers in the bottom 20% earn in a year, on average?

15000

The Earned Income Tax Credit, established in 1975, is designed to help lower-income workers. It gives them an incentive to work more, because they must earn income to get the credit. As their earnings go up, the credit is phased out gradually rather than abruptly.

1975, an incentive, earn, gradualy, abruptly

The table below summarizes

1980-1990, 1975-1985

In the 500-citizen nation of Blek, 100 citizens earn $5,000 per year; 90 citizens earn $8,000 per year; 110 citizens earn $12,000 per year; and 200 citizens earn $40,000 per year.

38

One year, a family earns $25,000 and receives $8,000 in cash assistance from the government. The next year, an additional family member finds part-time work and earns $4,000, so now the family's total income is $29,000. Because of the increased income, cash assistance from the government drops to $5,000. The reduction of benefits that resulted from the additional family income effectively feels like a tax of what percentage?

75%

In the unted states, the share of jobs that are unionized

Declined, One out of there, One out of eight, risen

Differences in human capital

Education, Less than half, Higher

Fill in the blanks to complete the passage about the relationship between education and pay.

Education, Less then half, Higher

Match each non-monotery

Geoffery- efficney wages, Orgaized- unionization, Arianna- compensating diffenential, After- human capital

Twenty people live on a tiny, privately owned island: 10 groundskeepers and 10 gamekeepers. Gamekeepers receive a higher salary than groundskeepers. Which of the following events would tend to decrease the island's income inequality ratio (as traditionally defined)?

Groundskeepers get a raise, while the gamekeeper salary remains the same. All 10 gamekeepers retire.

Josephine is a savvy restaurant owner who is striving to improve her business. She takes several actions to raise productivity and expand her customer base. Which of the following actions are examples of efficiency wages?

Hoping to reduce turnover and thereby increase productivity, Josephine decides to raise her cooks' wage from the market rate of $15/hour, which is what her competitors pay, to a rate of $20/hour.

What are some criticisms of in-kind assistance programs for those in poverty?

In-kind assistance is inefficient. It is paternalistic and disrespectful.

Match each phrase to its definition or description.

a 20%-sized portion of a population Correct label: quintile a graphical representation of income inequality Correct label: Lorenz curve the top quintile's income divided by the bottom quintile's income Correct label: income inequality ratio a quantitative measure of inequality, based on comparing two areas in a graph Correct label: Gini index the income level below which a person or family is considered impoverished Correct label: poverty threshold

Which groups in the United States disproportionately feel the incidence of poverty?

black citizens children households headed by single females

In the united states in 2013

efficiency wages

Which items are included among the nonmonetary determinants of workers' wages?

lifestyle efficiency wages cost of living education

Which of the following are problems in making accurate assessments of income inequality in the United States?

no accounting for the underground economy use of pretax rather than disposable income no accounting for in-kind transfers

Which of the following are potential sources of income inequality?

winner-take-all competitions corruption unequal access to education life-cycle wage pattern compensating differentials