Question 1

What are social insurance programs? Discuss the main programs used in the United States.

Accepted Answer

Social insurance programs are programs t...

Question 2

The Gini ratio, or Gini coefficient, is a measure of the

Accepted Answer

A)  inflationary gap.
B)  recessionary gap.
C)  number of households that are classified as being poor.
D)  degree of income inequality.E) B) and C)
F) C) and D)

Question 3

Statistical discrimination refers to

Accepted Answer

A)  the crowding of women or minorities into low-paying occupations.
B)  significant differences in average levels of earnings by gender, race, and ethnicity, after accounting for nondiscriminatory factors.
C)  making individual hiring decisions on the basis of the characteristics of the group to which a person belongs, rather than on his or her personal characteristics and productivity.
D)  the 50-percent unexplained residual in studies that try to account for wage differences by gender, race, and ethnic origin.E) C) and D)
F) None of the above

Question 4

Refer to the table. The decline in percentage of income received from before taxes and transfers to after taxes and transfers is greatest for the

Accepted Answer

A)  second 20 percent of households.
B)  third 20 percent of households.
C)  fourth 20 percent of households.
D)  highest 20 percent of households.E) A) and D)
F) B) and C)

Question 5

Government programs that pay benefits to those who are unable to earn income because of permanent disabilities or to those who have very low incomes and dependent children are called

Accepted Answer

A)  public assistance programs.
B)  social insurance programs.
C)  affirmative action programs.
D)  dependent programs.E) A) and D)
F) B) and D)

Question 6

In the taste-for-discrimination model, a prejudiced employer who prefers white workers and who has a discrimination coefficient of $3/hour would still hire African-Americans if the market wage rate were $22/hour for white workers and $20/hour for African Americans.

Accepted Answer

A) True 
 B)False

Question 7

Define labor market discrimination.

Accepted Answer

Labor market discrimination is defined a...

Question 8

Suppose the market wage rate for whites is $18 an hour and the monetary value a prejudiced employer attaches to the disutility of hiring African Americans is $3. This employer will be indifferent between hiring African Americans and whites only when the African-American wage rate is

Accepted Answer

A)  $3.
B)  $12.
C)  $15.
D)  $21.E) A) and D)
F) None of the above

Question 9

The Gini ratio of income inequality ranges between

Accepted Answer

A)  0 and 10,000.
B)  1 and 10.
C)  −1 and +1.
D)  0 and 1.E) A) and B)
F) None of the above

Question 10

In the United States,

Accepted Answer

A)  taxes decrease, but transfers increase, income inequality.
B)  taxes increase, but transfers reduce, income inequality.
C)  both taxes and transfers decrease income inequality.
D)  both taxes and transfers increase income inequality.E) C) and D)
F) A) and B)

Question 11

The degree of inequality in the distribution of income in an economy is depicted in a(n)

Accepted Answer

A)  Lorenz curve.
B)  Phillips curve.
C)  Engels curve.
D)  indifference curve.E) C) and D)
F) B) and C)

Question 12

Which one of the following would increase income inequality as measured by official census data and the quintile distribution?

Accepted Answer

A)  a doubling of Social Security retirement benefits
B)  elimination of the SNAP program
C)  elimination of the TANF program
D)  reduced divorce ratesE) None of the above
F) A) and B)

Question 13

The unemployment compensation social insurance program is a

Accepted Answer

A)  purely federal government program.
B)  purely state-level government program.
C)  federal-state program.
D)  local government program.E) B) and C)
F) C) and D)

Question 14

Social insurance programs partially replace income that has been lost due to the following, except

Accepted Answer

A)  retirement.
B)  disabilities.
C)  temporary unemployment.
D)  resignation from a job.E) B) and C)
F) None of the above

Question 15

An implication of the taste-for-discrimination model is that

Accepted Answer

A)  discrimination can lower a firm's production costs.
B)  discrimination will move a firm along its declining average total cost curve.
C)  other things equal, nondiscriminating firms will have lower production costs than discriminating firms.
D)  other things equal, discriminating firms will have lower production costs than nondiscriminating firms.E) A) and D)
F) B) and D)

Question 16

A reduction in the collective discrimination coefficients of employers will increase the wage rate of those discriminated against but reduce their employment.

Accepted Answer

A) True 
 B)False

Question 17

In 2017, a household with an annual income of $80,000 would find itself in the

Accepted Answer

A)  second quintile of the household income distribution.
B)  third quintile of the household income distribution.
C)  fourth quintile of the household income distribution.
D)  fifth (highest) quintile of the household income distribution.E) A) and C)
F) A) and D)

Question 18

Suppose the members of population A, consisting of Al, Bob, Curt, Doris, and Ellie, receive annual incomes of $4,000, $3,200, $2,400, $1,800, and $1,200, respectively. The members of population B, consisting of Fred, George, Holly, Irma, and Joan, receive incomes of $4,000, $3,000, $1,250, $950, and $800, respectively. We

Accepted Answer

A)  can say that the income of population B is more equally distributed than that of population A.
B)  can say that the income of population B is less equally distributed than that of population A.
C)  cannot make a meaningful comparison of the income distributions of populations A and B.
D)  can say that the richest quintile of population A receives 40 percent of total income.E) B) and D)
F) A) and B)

Question 19

Which of the following statements is correct?

Accepted Answer

A)  The Social Security Act requires all employers to insure their workers against industrial accidents and diseases.
B)  An increase in the degree of income inequality means that the income level of the poor is falling while the income level of the rich is rising.
C)  Over 90 percent of the workers in the United States are currently covered by Social Security.
D)  About one-fifth of our population is now classified as living in poverty.E) All of the above
F) B) and C)

Question 20

If income inequality is increasing, it means that the income levels of the poor are falling while the income levels of the rich are rising.

Accepted Answer

A) True 
 B)False

Exam 23: Income Inequality, Poverty, and Discrimination

Statistical discrimination refers to

Correct Answer
verified

Define labor market discrimination.

Correct Answer
verified
Labor market discrimination is defined a...
View Answer

An implication of the taste-for-discrimination model is that

Correct Answer
verified

Which of the following statements is correct?

Correct Answer
verified

If income inequality is increasing, it means that the income levels of the poor are falling while the income levels of the rich are rising.

Correct Answer
verified

Government programs that pay benefits to those who are unable to earn income because of permanent disabilities or to those who have very low incomes and dependent children are called

Correct Answer
verified

The degree of inequality in the distribution of income in an economy is depicted in a(n)

Correct Answer
verified

The Gini ratio, or Gini coefficient, is a measure of the

Correct Answer
verified

Refer to the table. The decline in percentage of income received from before taxes and transfers to after taxes and transfers is greatest for the

Correct Answer
verified

In the taste-for-discrimination model, a prejudiced employer who prefers white workers and who has a discrimination coefficient of $3/hour would still hire African-Americans if the market wage rate were $22/hour for white workers and $20/hour for African Americans.

Correct Answer
verified

A reduction in the collective discrimination coefficients of employers will increase the wage rate of those discriminated against but reduce their employment.

Correct Answer
verified

What are social insurance programs? Discuss the main programs used in the United States.

Correct Answer
verified
Social insurance programs are programs t...
View Answer

Correct Answer
verified

Suppose the market wage rate for whites is $18 an hour and the monetary value a prejudiced employer attaches to the disutility of hiring African Americans is $3. This employer will be indifferent between hiring African Americans and whites only when the African-American wage rate is

Correct Answer
verified

Social insurance programs partially replace income that has been lost due to the following, except

Correct Answer
verified

The unemployment compensation social insurance program is a

Correct Answer
verified

Which one of the following would increase income inequality as measured by official census data and the quintile distribution?

Correct Answer
verified

The Gini ratio of income inequality ranges between

Correct Answer
verified

In the United States,

Correct Answer
verified

In 2017, a household with an annual income of $80,000 would find itself in the

Correct Answer
verified

Exam 23: Income Inequality, Poverty, and Discrimination

Statistical discrimination refers to

Correct AnswerverifiedShow Answer

Define labor market discrimination.

Correct AnswerverifiedLabor market discrimination is defined a...View AnswerShow Answer

An implication of the taste-for-discrimination model is that

Correct AnswerverifiedShow Answer

Which of the following statements is correct?

Correct AnswerverifiedShow Answer

If income inequality is increasing, it means that the income levels of the poor are falling while the income levels of the rich are rising.

Correct AnswerverifiedShow Answer

Government programs that pay benefits to those who are unable to earn income because of permanent disabilities or to those who have very low incomes and dependent children are called

Correct AnswerverifiedShow Answer

The degree of inequality in the distribution of income in an economy is depicted in a(n)

Correct AnswerverifiedShow Answer

The Gini ratio, or Gini coefficient, is a measure of the

Correct AnswerverifiedShow Answer

Refer to the table. The decline in percentage of income received from before taxes and transfers to after taxes and transfers is greatest for the

Correct AnswerverifiedShow Answer

In the taste-for-discrimination model, a prejudiced employer who prefers white workers and who has a discrimination coefficient of $3/hour would still hire African-Americans if the market wage rate were $22/hour for white workers and $20/hour for African Americans.

Correct AnswerverifiedShow Answer

A reduction in the collective discrimination coefficients of employers will increase the wage rate of those discriminated against but reduce their employment.

Correct AnswerverifiedShow Answer

What are social insurance programs? Discuss the main programs used in the United States.

Correct AnswerverifiedSocial insurance programs are programs t...View AnswerShow Answer

Correct AnswerverifiedShow Answer

Suppose the market wage rate for whites is $18 an hour and the monetary value a prejudiced employer attaches to the disutility of hiring African Americans is $3. This employer will be indifferent between hiring African Americans and whites only when the African-American wage rate is

Correct AnswerverifiedShow Answer

Social insurance programs partially replace income that has been lost due to the following, except

Correct AnswerverifiedShow Answer

The unemployment compensation social insurance program is a

Correct AnswerverifiedShow Answer

Which one of the following would increase income inequality as measured by official census data and the quintile distribution?

Correct AnswerverifiedShow Answer

The Gini ratio of income inequality ranges between

Correct AnswerverifiedShow Answer

In the United States,

Correct AnswerverifiedShow Answer

In 2017, a household with an annual income of $80,000 would find itself in the

Correct AnswerverifiedShow Answer

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Correct Answer
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Labor market discrimination is defined a...
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Social insurance programs are programs t...
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