Question 1

Suppose society consists of four individuals: Andy,Bill,Carl,and David.Andy has $20,000 of income,Bill has $40,000 of income,Carl has $60,000 of income,and David has $80,000 of income.A utilitarian would argue that

Accepted Answer

A)   taking $1 from Bill and giving it to Carl would increase society's total utility.
B)   taking $1 from Carl and giving it to Andy would increase society's total utility.
C)   taking $1 from Carl and giving it to David would increase society's total utility.
D)   taking $1 from Bill and giving it to David would increase society's total utility.E) B) and C)
F) A) and B)

Question 2

Table 20-5
  
*A Gini coefficient is a commonly used measure of income inequality, with values between 0 and 1 (0 corresponds to perfect equality whereby everyone has exactly the same income, and 1 corresponds to perfect inequality where one person has all the income, while everyone else has zero income) .
Source: The World Bank
-Refer to Table 20-5.Which country has the most unequal income distribution?

Accepted Answer

A)   Latvia
B)   Italy
C)   France
D)   SwedenE) A) and B)
F) A) and C)

Question 3

About four out of five millionaires in the United States earned their money rather than inherited it.

Accepted Answer

A) True 
 B)False

Question 4

According to libertarians,the government should redistribute income from rich individuals to poor individuals to achieve a more equal distribution of income.

Accepted Answer

A) True 
 B)False

Question 5

Suppose that Jamal is moving to a state where personal incomes are distributed randomly.If Jamal believes in liberalism,he would prefer

Accepted Answer

A)   an income distribution that is relatively equal.
B)   that everyone has the same work opportunities and market-determined wage rates.
C)   that private property be transformed to government property to safeguard people's incomes.
D)   less economic assistance to the poor because it distorts the price system.E) A) and B)
F) C) and D)

Question 6

The poverty line in the country of Inequalia is $7,800.The distribution of income for Inequalia is as follows: 
The poverty rate in Inequalia is

Accepted Answer

A)   7.8 percent.
B)   between 10 percent and 25 percent.
C)   between 25 percent and 50 percent.
D)   39 percent.E) A) and B)
F) A) and C)

Question 7

If society chose to maximize total utility rather than minimum utility,

Accepted Answer

A)   society would achieve perfect income equality.
B)   society would achieve the maximin objective.
C)   its justice would be more utilitarian than Rawlsian.
D)   its justice would be more Rawlsian than utilitarian.E) All of the above
F) A) and B)

Question 8

Liberalism aims to raise the welfare of the worst-off person in society.This rule is called the

Accepted Answer

A)   minimax regret criterion.
B)   conservative approach.
C)   Nozick criterion.
D)   maximin criterion.E) All of the above
F) B) and D)

Question 9

Table 20-5
  
*A Gini coefficient is a commonly used measure of income inequality, with values between 0 and 1 (0 corresponds to perfect equality whereby everyone has exactly the same income, and 1 corresponds to perfect inequality where one person has all the income, while everyone else has zero income) .
Source: The World Bank
-Refer to Table 20-5.Which country has the most equal income distribution?

Accepted Answer

A)   Latvia
B)   Italy
C)   France
D)   SwedenE) C) and D)
F) A) and D)

Question 10

Which of the following explains the rise in income inequality in the United States from 1970 to 2008?

Accepted Answer

A)   An increase in minimum wages.
B)   An increase in the demand for skilled labor.
C)   An increase in the demand for unskilled labor.
D)   Reduced international trade with low-wage countries.E) All of the above
F) None of the above

Question 11

The economic life cycle describes how young people usually have higher savings rates than middle-aged people.

Accepted Answer

A) True 
 B)False

Question 12

The income distribution in the United States shows that the income share of the top fifth of all families is

Accepted Answer

A)   over 50 percent.
B)   around 25 percent.
C)   more than 10 times the income of the bottom fifth.
D)   not much different from the income of the top 5 percent.E) None of the above
F) C) and D)

Question 13

In general,which of the following would libertarians argue is more important than equal outcomes?

Accepted Answer

A)   equal opportunities
B)   equal incomes
C)   providing a social safety net
D)   offering the opportunity to purchase social insuranceE) A) and C)
F) None of the above

Question 14

Unemployment insurance benefits is a type of

Accepted Answer

A)   in-kind transfer.
B)   negative income tax payment.
C)   property income.
D)   welfare payment.E) A) and C)
F) B) and C)

Exam 20: Income Inequality and Poverty.

The poverty line in the country of Inequalia is $7,800.The distribution of income for Inequalia is as follows: The poverty rate in Inequalia is

Correct Answer
verified

If society chose to maximize total utility rather than minimum utility,

Correct Answer
verified

Suppose that Jamal is moving to a state where personal incomes are distributed randomly.If Jamal believes in liberalism,he would prefer

Correct Answer
verified

Correct Answer
verified

The income distribution in the United States shows that the income share of the top fifth of all families is

Correct Answer
verified

Unemployment insurance benefits is a type of

Correct Answer
verified

Which of the following explains the rise in income inequality in the United States from 1970 to 2008?

Correct Answer
verified

Liberalism aims to raise the welfare of the worst-off person in society.This rule is called the

Correct Answer
verified

According to libertarians,the government should redistribute income from rich individuals to poor individuals to achieve a more equal distribution of income.

Correct Answer
verified

Correct Answer
verified

In general,which of the following would libertarians argue is more important than equal outcomes?

Correct Answer
verified

About four out of five millionaires in the United States earned their money rather than inherited it.

Correct Answer
verified

Suppose society consists of four individuals: Andy,Bill,Carl,and David.Andy has $20,000 of income,Bill has $40,000 of income,Carl has $60,000 of income,and David has $80,000 of income.A utilitarian would argue that

Correct Answer
verified

The economic life cycle describes how young people usually have higher savings rates than middle-aged people.

Correct Answer
verified

Exam 20: Income Inequality and Poverty.

The poverty line in the country of Inequalia is $7,800.The distribution of income for Inequalia is as follows: The poverty rate in Inequalia is

Correct AnswerverifiedShow Answer

If society chose to maximize total utility rather than minimum utility,

Correct AnswerverifiedShow Answer

Suppose that Jamal is moving to a state where personal incomes are distributed randomly.If Jamal believes in liberalism,he would prefer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The income distribution in the United States shows that the income share of the top fifth of all families is

Correct AnswerverifiedShow Answer

Unemployment insurance benefits is a type of

Correct AnswerverifiedShow Answer

Which of the following explains the rise in income inequality in the United States from 1970 to 2008?

Correct AnswerverifiedShow Answer

Liberalism aims to raise the welfare of the worst-off person in society.This rule is called the

Correct AnswerverifiedShow Answer

According to libertarians,the government should redistribute income from rich individuals to poor individuals to achieve a more equal distribution of income.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

In general,which of the following would libertarians argue is more important than equal outcomes?

Correct AnswerverifiedShow Answer

About four out of five millionaires in the United States earned their money rather than inherited it.

Correct AnswerverifiedShow Answer

Suppose society consists of four individuals: Andy,Bill,Carl,and David.Andy has $20,000 of income,Bill has $40,000 of income,Carl has $60,000 of income,and David has $80,000 of income.A utilitarian would argue that

Correct AnswerverifiedShow Answer

The economic life cycle describes how young people usually have higher savings rates than middle-aged people.

Correct AnswerverifiedShow Answer

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