Question 1

Ms.Shanahan currently earns $100,000 a year,while her junior partner,Mr.Koslo,earns $55,000 a year.From the perspective of a utilitarian,if both of their incomes are subject to diminishing marginal utility,what will taking a dollar from Ms.Shanahan and giving it to Mr.Koslo do

Accepted Answer

A)  Ms.Shanahan's utility falls by less than Mr.Koslo's utility rises.
B)  Ms.Shanahan's utility falls by more than Mr.Koslo's utility rises.
C)  Mr.Koslo's utility falls by less than Ms.Shanahan's utility rises.
D)  Mr.Koslo's utility falls by more than Ms.Shanahan's utility rises.E) A) and B)
F) All of the above

Question 2

For which question does a measurement of the distribution of income NOT provide an answer

Accepted Answer

A)  How much inequality is there in our society?
B)  How many people live in poverty?
C)  How often do people receive raises?
D)  How is inequality measured?E) A) and B)
F) All of the above

Question 3

In Canada,what percent of total income are labour earnings

Accepted Answer

A)  55
B)  65
C)  75
D)  85E) All of the above
F) A) and D)

Question 4

According to libertarians,the government should take from some individuals and give to others in order to achieve a more equal distribution of income.

Accepted Answer

A) True 
 B)False

Question 5

There is a very strong correlation between the income of a father and the income of his son.

Accepted Answer

A) True 
 B)False

Question 6

What kind of income for a farmer would a hail storm affect

Accepted Answer

A)  permanent income
B)  economic life cycle income
C)  transitory income
D)  natural incomeE) None of the above
F) A) and B)

Question 7

What is the R-factor? How did the R-factor change from 1976 to 2011 in Canada?

Accepted Answer

The R-factor is the percentage differenc...

Question 8

What is the Gini coefficient? Measured by the Gini coefficient, what is the difference between market income and after-tax/transfer income in Canada?

Accepted Answer

The Gini coefficient is a widely used me...

Question 9

A Canadian family earning $57,500 would be in the middle fifth income group in 2011.

Accepted Answer

A) True 
 B)False

Question 10

According to libertarians,what should one be primarily concerned with when considering economic fairness

Accepted Answer

A)  the outcome of the system
B)  the process by which outcomes arise
C)  the maximin criterion
D)  maximizing total social utilityE) A) and B)
F) B) and C)

Question 11

In what way does the invisible hand of the marketplace act to allocate resources

Accepted Answer

A)  efficiently, but not necessarily ensuring fairness
B)  not only fairly but also efficiently
C)  fairly, but not necessarily ensuring efficiency
D)  not only efficiently but also equitablyE) B) and C)
F) A) and D)

Question 12

Based on Canadian income data from 2011,approximately how many times as much income as the bottom fifth did the middle fifth of all families receive

Accepted Answer

A)  7
B)  10
C)  12
D)  15E) A) and B)
F) All of the above

Question 13

Based on data from 2011,approximately what percentage of all income in Canada did the top fifth of all families receive

Accepted Answer

A)  32
B)  43
C)  52
D)  78E) None of the above
F) A) and B)

Question 14

Which political philosophy would be more closely associated with evaluating the process by which economic outcomes arise rather than the economic outcomes themselves

Accepted Answer

A)  utilitarianism
B)  liberalism
C)  libertarianism
D)  monetarismE) B) and C)
F) A) and D)

Question 15

In Canada,the poverty rate is a measure of the percentage of people whose income falls below what

Accepted Answer

A)  the high-income cutoff
B)  the low-income cutoff
C)  the median family of four income
D)  an absolute measure which is calculated annuallyE) A) and B)
F) A) and C)

Question 16

Which conclusion about equality of income in Canada is supported by cross-country comparisons of distribution of income

Accepted Answer

A)  Canada has relatively high equality among the developed countries but less equality than the developing countries.
B)  Canada has relatively high equality among the developed countries and also more equality than the developing countries.
C)  Canada has relatively high inequality among the developed countries and also less equality than the developing countries.
D)  Canada has relatively high inequality among the developed countries but has more equality than the developing countries.E) A) and C)
F) A) and B)

Question 17

In the parable of the leaky bucket,a fundamental problem with government redistribution programs is identified.As long as the government only has "leaky buckets" at its disposal,what can we conclude

Accepted Answer

A)  Affirmative action programs are doomed to failure.
B)  The government should not try to reach complete equality in income.
C)  Full egalitarian policies will always dominate competing policy options.
D)  Equality of economic opportunity is an unattainable goal.E) B) and C)
F) C) and D)

Question 18

What is the ongoing debate regarding the current EI system in Canada?

Accepted Answer

The ongoing debate regarding the current...

Question 19

Which argument is a libertarian likely to make

Accepted Answer

A)  Outcomes always dominate processes.
B)  Only individual members of society can earn income.
C)  Government has no role in the economy.
D)  Society is responsible for ensuring an equal distribution of income.E) A) and B)
F) C) and D)

Question 20

Using demand-supply analysis,show how the elasticity of demand of labour determines the magnitude of unemployment when an effective minimum wage is imposed.

Accepted Answer

Graph A shows a more inelastic demand fo...

Exam 20: Income Inequality and Poverty

According to libertarians,the government should take from some individuals and give to others in order to achieve a more equal distribution of income.

Correct AnswerverifiedShow Answer

Using demand-supply analysis,show how the elasticity of demand of labour determines the magnitude of unemployment when an effective minimum wage is imposed.

Correct AnswerverifiedGraph A shows a more inelastic demand fo...View AnswerShow Answer

What is the Gini coefficient? Measured by the Gini coefficient, what is the difference between market income and after-tax/transfer income in Canada?

Correct AnswerverifiedThe Gini coefficient is a widely used me...View AnswerShow Answer

What is the R-factor? How did the R-factor change from 1976 to 2011 in Canada?

Correct AnswerverifiedThe R-factor is the percentage differenc...View AnswerShow Answer

In Canada,the poverty rate is a measure of the percentage of people whose income falls below what

Correct AnswerverifiedShow Answer

A Canadian family earning $57,500 would be in the middle fifth income group in 2011.

Correct AnswerverifiedShow Answer

For which question does a measurement of the distribution of income NOT provide an answer

Correct AnswerverifiedShow Answer

Based on Canadian income data from 2011,approximately how many times as much income as the bottom fifth did the middle fifth of all families receive

Correct AnswerverifiedShow Answer

In Canada,what percent of total income are labour earnings

Correct AnswerverifiedShow Answer

Ms.Shanahan currently earns $100,000 a year,while her junior partner,Mr.Koslo,earns $55,000 a year.From the perspective of a utilitarian,if both of their incomes are subject to diminishing marginal utility,what will taking a dollar from Ms.Shanahan and giving it to Mr.Koslo do

Correct AnswerverifiedShow Answer

There is a very strong correlation between the income of a father and the income of his son.

Correct AnswerverifiedShow Answer

Based on data from 2011,approximately what percentage of all income in Canada did the top fifth of all families receive

Correct AnswerverifiedShow Answer

What is the ongoing debate regarding the current EI system in Canada?

Correct AnswerverifiedThe ongoing debate regarding the current...View AnswerShow Answer

Which argument is a libertarian likely to make

Correct AnswerverifiedShow Answer

In what way does the invisible hand of the marketplace act to allocate resources

Correct AnswerverifiedShow Answer

According to libertarians,what should one be primarily concerned with when considering economic fairness

Correct AnswerverifiedShow Answer

In the parable of the leaky bucket,a fundamental problem with government redistribution programs is identified.As long as the government only has "leaky buckets" at its disposal,what can we conclude

Correct AnswerverifiedShow Answer

Which political philosophy would be more closely associated with evaluating the process by which economic outcomes arise rather than the economic outcomes themselves

Correct AnswerverifiedShow Answer

Which conclusion about equality of income in Canada is supported by cross-country comparisons of distribution of income

Correct AnswerverifiedShow Answer

What kind of income for a farmer would a hail storm affect

Correct AnswerverifiedShow Answer

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Graph A shows a more inelastic demand fo...
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The Gini coefficient is a widely used me...
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The R-factor is the percentage differenc...
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Correct Answer
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The ongoing debate regarding the current...
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