FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 15: Income, Inequality, and Poverty

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 21

Multiple Choice

Review LaterAdd Note

Review Later

If households in the lowest income-earning bracket are doing relatively well compared to those in the highest income-earning bracket, the inequality ratio will:

A) fall.
B) initially grow but then fall.
C) grow.
D) initially fall but then grow.
E) be unaffected.

F) A) and E)
G) None of the above

Correct Answer

verified

Show Answer

Question 22

Essay

Review LaterAdd Note

Review Later

How do government programs affect the distribution of income in the United States?

Correct Answer

verified

Government programs are generally design...

View Answer

Show Answer

Question 23

Essay

Review LaterAdd Note

Why is it problematic to compare the income inequality ratio over a lengthy period of time but more valid to make such a comparison over a shorter period of time?

Calculate the inequality ratio from the following information: $\begin{array}{lr}&\text { Level of Mean income }\\\text { Bottom quintile } & \$ 500 \\\text { Second quintile } & \$ 1,500 \\\text { Middle quintile } & \$ 2,000 \\\text { Fouth quintile } & \$ 20,000 \\\text { Top quintile } & \$ 40,000\end{array}$

What theory would justify a job advertisement that reads: "Help Wanted! Looking for a person willing to stay with the firm for a long time. Excellent pay"?

What theory would suggest that an employee should receive a wage higher than the equilibrium wage rate?

Using the concept of the samaritan's dilemma, explain why it might be advisable to place a limit on the time that one can receive government help.

I expect that my wages will increase over time. What theory justifies this expectation?

What are some of the causes of income inequality in the United States?

What role does bargaining power in a unionized workplace have on the wage in comparison to the wage in a non-unionized workplace?

What theory can explain why a CEO might earn so much more than other managers with similar experience and education at the same company?

How does the level of income inequality in the United States compare to that in other countries?

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?

Why might an employer be reluctant to pay for an employee to get a master's degree when the knowledge could be used by that employee to work for another employer?

The cost of education at an Ivy League university is over $50,000 per year. At a community college, the cost of education is only a few thousand dollars per year. What economic theory could justify enrolling in an Ivy League school?

Approximately what percentage of income is earned by the richest 20% of households in the United States?

What theory would suggest that learning material on your own generates the same benefits as those achieved by formally attending classes and receiving a degree?

Use the accompanying table, which represents the distribution of income in the countries of Mateer and Coppock, to answer questions. $\begin{array} { l }\text { Mateer }&\text { Coppock }\\20 \text { residents total }&20 \text { resilents total }\\10 \text { residents earn } \$ 100,000 \text { each }&10 \text { resilents eamn } \$ 75,000 \text { each }\\10 \text { residents earn } \$ 10,000 \text { each }&10 \text { resilents eamn } \$ 25,000 \text { each }\\\end{array}$ -What is the degree of income inequality in Mateer?

Why is it that economists believe the level of inequality in less-developed countries is overstated?

If your daughter were to inform you that she wanted to be a bank teller and you were concerned about her ability to pay her bills, what economic theory could you use to convince her to become an engineer instead?