Question 1

At several local supermarkets,employees are dissatisfied with wages and working conditions.Individual negotiations with managers have produced no changes.These workers may decide to form a(n)

Accepted Answer

A)   collateral.
B)   support group.
C)   think tank.
D)   union.
E)   underground economy.F) A) and B)
G) All of the above

Question 2

Besides sex discrimination,women might earn less than men in the workplace because women

Accepted Answer

A)   have more human capital.
B)   have fewer years of work experience.
C)   have more years of work experience.
D)   work more hours per year.
E)   more frequently belong to a union.F) C) and D)
G) B) and C)

Question 3

Economists believe the level of inequality in less developed countries is overstated because it doesn't take ________ into account.

Accepted Answer

A)   corruption
B)   income from low-paying jobs
C)   investments in human capital
D)   goods and services produced within the home
E)   discriminationF) C) and E)
G) C) and D)

Question 4

The ________ program is the largest poverty-fighting tool in the United States,affecting more than 25 million families.

Accepted Answer

A)   Temporary Assistance for Needy Families (TANF) 
B)   Subsidized Nutritional Assistance Program (SNAP) 
C)   Universal Stipend for Equality (US
E)  
D)   Earned Income Tax Credit (EIT
C)  
E)   Supplemental Security Income (SSI) F) B) and D)
G) B) and C)

Question 5

Using an efficiency wage theory,why do some individuals earn more than the market equilibrium wage?

Accepted Answer

A)   Workers who earn more are those who are more productive.
B)   Workers need to earn more to be willing to accept dangerous working conditions.
C)   Workers need to earn more to be willing to accept a safe indoor job.
D)   Workers who are more educated and better trained are able to earn more than the equilibrium wage.
E)   Workers who earn more tend to be concentrated in a single occupation.F) A) and C)
G) A) and B)

Question 6

Why do government officials in developing countries often try to reduce corruption?

Accepted Answer

Corruption reduces the incentive to work...

Question 7

What differentiates the U.S.income inequality ratio from that found in less-developed countries?

Accepted Answer

A)   It is higher than in less-developed countries due to the large number of poor people.
B)   In less-developed countries,the inequality ratio is lower than in the United States due to the large number of rich people.
C)   In the United States,it is lower than that found in less-developed countries because the poor in the United States earn more than the poor in less-developed countries.
D)   There is no significant difference between the inequality ratios in the United States and in less-developed countries.
E)   In the United States,it is lower than in less-developed countries due to corruption.F) A) and D)
G) All of the above

Question 8

What is the name of the model that best explains why an actor in a nationally broadcast television program earns so much more than an actor who is equally talented and productive but who performs in a local play?

Accepted Answer

A)   occupational crowding
B)   winner-take-all
C)   income mobility
D)   human capital
E)   life-cycle wage patternF) D) and E)
G) C) and E)

Question 9

The approximate poverty rate for minority women who are heads of household in the United States is ________ percent.

Accepted Answer

A)   10
B)   20
C)   38
D)   50
E)   75F) A) and B)
G) B) and E)

Question 10

Jasmine,a woman,is more educated and better trained than Christian,a male.Despite these differences in education and training,Christian still earns more because he is a coal miner,whereas Jasmine is a secretary.Which model best explains the fact that Christian earns more than Jasmine?

Accepted Answer

A)   efficiency wage
B)   winner-take-all
C)   income mobility
D)   human capital
E)   compensating differentialsF) All of the above
G) B) and E)

Question 11

In the late nineteenth-century United States,sharecropping was a common occupation among newly freed slaves and poor whites.The structure of the system left sharecroppers barely subsisting from their production,and deeply indebted to the landowners.This economic arrangement prevented the concept of

Accepted Answer

A)   income mobility.
B)   the life-cycle wage pattern.
C)   compensating differentials.
D)   human capital.
E)   income differentials.F) None of the above
G) A) and B)

Question 12

The income level below which a person or family is considered impoverished is the

Accepted Answer

A)   poverty rate.
B)   poverty threshold.
C)   poverty index.
D)   poverty ratio.
E)   income inequality line.F) B) and D)
G) A) and D)

Question 13

Some employers are willing to provide job training for workers.However,an employer might require the worker to pay for the training when the training is

Accepted Answer

A)   specific to the employer.
B)   a general skill that could be used in any job for any employer.
C)   of short length.
D)   extensive.
E)   provided by a manager in the firm.F) C) and D)
G) A) and E)

Question 14

When comparing a union job to a nonunion job,we would expect to see

Accepted Answer

A)   higher wages being paid to the employee holding a nonunion job.
B)   lower wages being paid to the employee holding a union job.
C)   better pay and benefits being received by the employee holding a nonunion job.
D)   no difference in the pay and benefits received by the employees in the union and nonunion jobs.
E)   higher wages being paid for the employee holding a union job.F) None of the above
G) D) and E)

Question 15

The ________ is a visual representation of the Gini index.

Accepted Answer

A)   Color-Coded Inequality Map (CCIM) 
B)   Lorenz curve
C)   Income Quintile Graph
D)   Laffer curve
E)   OECD Poverty DiagramF) A) and D)
G) A) and C)

Question 16

Using a compensating differential wage theory,some individuals earn more than others because workers

Accepted Answer

A)   who earn more are more productive.
B)   need to earn more to be willing to accept dangerous working conditions.
C)   need to earn more to be willing to accept a safe indoor job.
D)   who are more educated and better trained are able to earn more than the equilibrium wage.
E)   who earn more tend to be concentrated in a single occupation.F) All of the above
G) A) and B)

Question 17

The country of Econoville has created a negative income tax for its residents.Tax liability in the country is determined by the following equation: Taxes owed = (20% of income) - $7,500
If Olivia's income is $60,000,what is her total tax owed (a positive number) or tax credit (a negative number) ?

Accepted Answer

A)   -$16,500
B)   -$12,000
C)   $4,500
D)   $12,000
E)   $16,500F) C) and D)
G) A) and B)

Question 18

If Kareem thinks his boss is discriminating against him based on his gender or race,what kind of evidence would he need to collect to prove discrimination to his friend,who is an economist?

Accepted Answer

The existence of earning differences alo...

Question 19

As the mayor of a local town,Newman has the power to repeal workplace safety laws.How would repealing all workplace safety laws affect the wages of kindergarten teachers who work in relatively safe jobs at the local school?

Accepted Answer

A)   It would reduce teachers' wages because of less-severe negative compensating differentials.
B)   It would increase teachers' wages because of less-severe negative compensating differentials.
C)   It would reduce teachers' wages because of more-severe negative compensating differentials.
D)   It would increase teachers' wages because of more-severe negative compensating differentials.
E)   It would have little effect on teachers' wages because of a lack of negative compensating differentials.F) B) and E)
G) B) and C)

Question 20

Some employers are willing to provide job training for workers.The employer might be willing to pay for the training when

Accepted Answer

A)   the training is specific to the employer.
B)   the training is a general skill that could be used at any job for any employer.
C)   the training is of short length.
D)   the training is extensive.
E)   on its completion,the student receives a degree.F) A) and E)
G) A) and C)

Exam 15: Income,inequality,and Poverty

Economists believe the level of inequality in less developed countries is overstated because it doesn't take ________ into account.

Correct AnswerverifiedShow Answer

The approximate poverty rate for minority women who are heads of household in the United States is ________ percent.

Correct AnswerverifiedShow Answer

Some employers are willing to provide job training for workers.The employer might be willing to pay for the training when

Correct AnswerverifiedShow Answer

What is the name of the model that best explains why an actor in a nationally broadcast television program earns so much more than an actor who is equally talented and productive but who performs in a local play?

Correct AnswerverifiedShow Answer

If Kareem thinks his boss is discriminating against him based on his gender or race,what kind of evidence would he need to collect to prove discrimination to his friend,who is an economist?

Correct AnswerverifiedThe existence of earning differences alo...View AnswerShow Answer

What differentiates the U.S.income inequality ratio from that found in less-developed countries?

Correct AnswerverifiedShow Answer

As the mayor of a local town,Newman has the power to repeal workplace safety laws.How would repealing all workplace safety laws affect the wages of kindergarten teachers who work in relatively safe jobs at the local school?

Correct AnswerverifiedShow Answer

At several local supermarkets,employees are dissatisfied with wages and working conditions.Individual negotiations with managers have produced no changes.These workers may decide to form a(n)

Correct AnswerverifiedShow Answer

When comparing a union job to a nonunion job,we would expect to see

Correct AnswerverifiedShow Answer

Using a compensating differential wage theory,some individuals earn more than others because workers

Correct AnswerverifiedShow Answer

Some employers are willing to provide job training for workers.However,an employer might require the worker to pay for the training when the training is

Correct AnswerverifiedShow Answer

The ________ is a visual representation of the Gini index.

Correct AnswerverifiedShow Answer

Jasmine,a woman,is more educated and better trained than Christian,a male.Despite these differences in education and training,Christian still earns more because he is a coal miner,whereas Jasmine is a secretary.Which model best explains the fact that Christian earns more than Jasmine?

Correct AnswerverifiedShow Answer

In the late nineteenth-century United States,sharecropping was a common occupation among newly freed slaves and poor whites.The structure of the system left sharecroppers barely subsisting from their production,and deeply indebted to the landowners.This economic arrangement prevented the concept of

Correct AnswerverifiedShow Answer

Using an efficiency wage theory,why do some individuals earn more than the market equilibrium wage?

Correct AnswerverifiedShow Answer

Besides sex discrimination,women might earn less than men in the workplace because women

Correct AnswerverifiedShow Answer

The income level below which a person or family is considered impoverished is the

Correct AnswerverifiedShow Answer

The ________ program is the largest poverty-fighting tool in the United States,affecting more than 25 million families.

Correct AnswerverifiedShow Answer

The country of Econoville has created a negative income tax for its residents.Tax liability in the country is determined by the following equation: Taxes owed = (20% of income) - $7,500 If Olivia's income is $60,000,what is her total tax owed (a positive number) or tax credit (a negative number) ?

Correct AnswerverifiedShow Answer

Why do government officials in developing countries often try to reduce corruption?

Correct AnswerverifiedCorruption reduces the incentive to work...View AnswerShow Answer

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Corruption reduces the incentive to work...
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