Question 1

When certain groups or classes are relegated to a narrow range of jobs in the economy,it is called

Accepted Answer

A)   occupational hazard.
B)   occupational formulation.
C)   occupational narrowing.
D)   occupational crowding.
E)   funneling.F) A) and C)
G) C) and E)

Question 2

Why do some economists believe that income inequality and poverty statistics might overstate the income inequality problem of poverty?

Accepted Answer

These statistics do not include in-kind ...

Question 3

What theory suggests that learning material on your own would not generate the same benefits as those achieved by formally attending classes and receiving a degree?

Accepted Answer

A)   human capital
B)   signal
C)   compensating differentials
D)   winner-take-all
E)   efficiency wageF) C) and D)
G) A) and E)

Question 4

Why might occupational crowding persist in certain industries,despite educational parity and an elimination of discrimination?

Accepted Answer

A)   New forms of discrimination always emerge to suppress certain groups of individuals.
B)   Wages are not high enough in other industries to attract those in more crowded occupations.
C)   Colleges and universities usher gender and minority groups toward certain fields of study,perpetuating the crowding problem.
D)   Workers don't view occupational crowding as a problem,preventing any incentive for mobility.
E)   Personal preferences for certain types of jobs means that some groups will always have higher representation in those industries.F) B) and E)
G) None of the above

Question 5

The minimum wage is an ineffective antipoverty measure for all EXCEPT which of the following reasons?

Accepted Answer

A)   The wage ceiling created by minimum wage laws falls below the equilibrium price,producing a shortage of labor.
B)   The wage mandated by law often exceeds the value created by low-skill workers,resulting in a move away from labor-intensive processes.
C)   The wage floor created by minimum wage laws lies above the equilibrium price,producing a surplus of labor.
D)   Increased wages can force small businesses,who are less able to adapt to changes in costs,to close their operations,reducing the total quantity of jobs.
E)   An increase in wages may cause employees to lose working hours,resulting in a net change in pay that is negative.F) D) and E)
G) C) and D)

Question 6

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

Accepted Answer

Government programs are generally design...

Question 7

Based on research into wage discrimination,economists believe

Accepted Answer

A)   it was a common problem of the past that has since disappeared.
B)   broader factors beyond bias play the major roles.
C)   women actually earn more over their lifetimes than men.
D)   it has intensified since the passage of the Equal Pay Act of 1963.
E)   it is only caused by racial and gender bias.F) A) and B)
G) B) and E)

Question 8

In some less developed economies,property rights aren't guaranteed and bribing public officials is often necessary to engage in commerce.In this system,economists would point to ________ as an obstacle to greater income equality.

Accepted Answer

A)   discrimination
B)   instability
C)   anarchy
D)   wealth
E)   corruptionF) D) and E)
G) A) and B)

Question 9

________ are composed of markets in which goods or services are traded illegally.

Accepted Answer

A)   Illegitimate operations
B)   Underground economies
C)   Government-monitored transactions
D)   In-cash transfers
E)   Under-the-table economiesF) None of the above
G) B) and D)

Question 10

As a male nurse,Gregory often complains about the low pay he receives despite the fact that he has a significant amount of education.What economic theory explains his suppressed wage?

Accepted Answer

A)   compensating differential
B)   human capital
C)   winner-take-all
D)   occupational crowding
E)   efficiency wageF) A) and B)
G) B) and E)

Question 11

The Lorenz curve is especially helpful for seeing how income inequality

Accepted Answer

A)   varies in each country.
B)   has changed over time.
C)   reflects the different causational factors.
D)   always decreases in developed economies.
E)   can be resolved through public policy.F) B) and C)
G) A) and E)

Question 12

Government programs that subsidize housing or Internet access are an example of

Accepted Answer

A)   underground economies.
B)   in-kind transfers.
C)   disposable income.
D)   in-cash transfers.
E)   income supplements.F) C) and D)
G) C) and E)

Question 13

As a college student,Bethany realizes that she has become an expert at playing video games.If Bethany saw a commercial on TV seeking applications for video game testers (her dream job) ,she would expect the job to pay

Accepted Answer

A)   low wages because of the efficiency wage principle.
B)   low wages because of occupational crowding.
C)   high wages because of compensating differentials.
D)   low wages because of compensating differentials.
E)   high wages because of the in-kind transfers.F) A) and E)
G) D) and E)

Question 14

Why has poverty been a long-term problem in the United States? What might explain why poverty has been such a persistent problem over time? What can policy makers do to reduce poverty?

Accepted Answer

Poverty has been a persistent problem in...

Question 15

Income mobility represents the ________ of a worker to ________.

Accepted Answer

A)   inability; move to a job.
B)   inability; be trained and earn less.
C)   inability; be trained and earn more.
D)   ability; move to a job where he or she can earn the most.
E)   ability; move up or down the economic ladder.F) D) and E)
G) A) and B)

Question 16

Of the five factors that lead to income inequality,over which one does an individual actually have direct control?

Accepted Answer

A)   privileged background
B)   discrimination
C)   widespread corruption
D)   ability
E)   training and educationF) D) and E)
G) A) and B)

Question 17

All of the following contribute to wage discrimination,EXCEPT

Accepted Answer

A)   race.
B)   in-kind transfers.
C)   differences in human capital.
D)   sex.
E)   age.F) B) and C)
G) C) and D)

Question 18

How has the samaritan's dilemma informed the creation of the earned income tax credit? Be sure to define the samaritan's dilemma in your answer.

Accepted Answer

The samaritan's dilemma occurs when an a...

Question 19

Someone might expect a fast-food job to pay a wage higher than the minimum wage because it

Accepted Answer

A)   is boring and an efficiency wage is offered to reduce turnover.
B)   is safe.
C)   doesn't require a lot of education.
D)   is not unionized.
E)   is exciting and fast-paced.F) D) and E)
G) A) and C)

Question 20

Economists say that official poverty statistics do not accurately measure the true rate of poverty because the data fails to include

Accepted Answer

A)   income earned from investments.
B)   income earned by the elderly.
C)   income earned by teenagers.
D)   in-kind transfers.
E)   single-parent households.F) A) and C)
G) All of the above

Exam 15: Income,inequality,and Poverty

When certain groups or classes are relegated to a narrow range of jobs in the economy,it is called

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedGovernment programs are generally design...View AnswerShow Answer

In some less developed economies,property rights aren't guaranteed and bribing public officials is often necessary to engage in commerce.In this system,economists would point to ________ as an obstacle to greater income equality.

Correct AnswerverifiedShow Answer

Income mobility represents the ________ of a worker to ________.

Correct AnswerverifiedShow Answer

Government programs that subsidize housing or Internet access are an example of

Correct AnswerverifiedShow Answer

All of the following contribute to wage discrimination,EXCEPT

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Based on research into wage discrimination,economists believe

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Economists say that official poverty statistics do not accurately measure the true rate of poverty because the data fails to include

Correct AnswerverifiedShow Answer

Why do some economists believe that income inequality and poverty statistics might overstate the income inequality problem of poverty?

Correct AnswerverifiedThese statistics do not include in-kind ...View AnswerShow Answer

Why has poverty been a long-term problem in the United States? What might explain why poverty has been such a persistent problem over time? What can policy makers do to reduce poverty?

Correct AnswerverifiedPoverty has been a persistent problem in...View AnswerShow Answer

The minimum wage is an ineffective antipoverty measure for all EXCEPT which of the following reasons?

Correct AnswerverifiedShow Answer

As a college student,Bethany realizes that she has become an expert at playing video games.If Bethany saw a commercial on TV seeking applications for video game testers (her dream job) ,she would expect the job to pay

Correct AnswerverifiedShow Answer

The Lorenz curve is especially helpful for seeing how income inequality

Correct AnswerverifiedShow Answer

Why might occupational crowding persist in certain industries,despite educational parity and an elimination of discrimination?

Correct AnswerverifiedShow Answer

Someone might expect a fast-food job to pay a wage higher than the minimum wage because it

Correct AnswerverifiedShow Answer

Of the five factors that lead to income inequality,over which one does an individual actually have direct control?

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How has the samaritan's dilemma informed the creation of the earned income tax credit? Be sure to define the samaritan's dilemma in your answer.

Correct AnswerverifiedThe samaritan's dilemma occurs when an a...View AnswerShow Answer

________ are composed of markets in which goods or services are traded illegally.

Correct AnswerverifiedShow Answer

As a male nurse,Gregory often complains about the low pay he receives despite the fact that he has a significant amount of education.What economic theory explains his suppressed wage?

Correct AnswerverifiedShow Answer

What theory suggests that learning material on your own would not generate the same benefits as those achieved by formally attending classes and receiving a degree?

Correct AnswerverifiedShow Answer

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Government programs are generally design...
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Income mobility represents the of a worker to .

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These statistics do not include in-kind ...
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Poverty has been a persistent problem in...
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The samaritan's dilemma occurs when an a...
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