ex3Spring 08 - MULTIPLE CHOICE QUESTIONS (Show all your...

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Unformatted text preview: MULTIPLE CHOICE QUESTIONS (Show all your calculations below for questions requiring computations) , Use the following information to answer question 1. Earnings per Year A 6 Hi School Universit Graduate 25—34 $25,000 $35,000 35—44 28,000 40,000 45-54 30,000 47,000 5564 33,000 54,000 1. What is the total lifetime earnings differential? a. $60,000 b. $73,000 0. $540,000 21(- $600,000 6. $725,000- 2. The major government subsidy to students at public universities is: a. the Hope tax credit I). the Lifetime Learning credit , c, w , r Staffordrloansw X State appropriations e. Pell grants 3. The largest public assistance program in terms of 5 spent is: a. Medicare b. Supplemental Security Income (881) r c. OASDI d. food'stamps- X Medicaid r 4. The Q]; 20% of all families in the U.S. in 2006 received approximately distribution of annual money income among families. percent of the a. 10 b. 30 c. 45 X so 6. 75 5. Between l_2_2_9_ and All], as measured by the Lorenz curve, income inggualig in the U.S. a. increased sharply over the entire period I I). remain unchanged ‘ X decreaSed until about 1973, then started increasing again, although not to the level of 1929 ' (1. increased slightly- e. declined steadily u " Questions ‘6—10 refer to the following diagram, which shows the Lorenz curve for a hypothetical economy. Cumnlative percentage of money income Lorenz curve ' factual income distribution) 0 20"‘_4o. so- so mo Cumulative percentages ‘ ‘ oftamllies 6. According to this Lorenz curve, what percentage of total income is earned by the richest 29 percent of famiiies? a. 20 percent _ X 40 percent 0. 60 percent {1. 70 percent e. 85 percent 7. If this economy’s distribution of income becomes more (but not perfectly) m then the Lorenz curve will: move closer to the 45" line become more bowed outward lie above the 45° line flP-PP‘X disappear altogether not change 8. According to this Lorenz curve, what percentage of total income is earned by the second lowest guintile of families? ' a. 5 percent X 10 percent c. 15 percent (1. 20 percent 6. 30 percent this country’s distribution of income becomes less egual, then the Gini coefficient will: 9 If X increase - b. decrease c. not change d. disappear e. none of the above 10. 11. 12. 13. 14. 15. 16. According to this LOrenz curve, what percentage of total income is earned by the middle g9 e nt of families? § 15 percent b. 20 percent 0. 30 percent (1. 60 percent e. 70 percent Examples of welfare programs would n_ot include: a. TANF payments 1). food stamps c. the Earned Income Tax Credit Social Security e. Supplemental Security Income (881) In a Lorenz curve diagram, the §5_° line represents: perfect income inequality an extremely unequal distribution of income a negative income tax zero inflation perfect income equality X5199”? In the United States since ‘1970, the poverty rice for blacks has been about (roughly): a. 1-2 percentage points higher than the poverty rate for whites b. twice the poverty rate for whites X three times the poverty rate for whites (1. five times the poverty rate of whites e. lower than for HispaniCs Poverty rates in the U.S. are highest for which demographic group? a. blacks heads of houSeholds b. unmarried white males 0. young married couples X female heads of hou-sehoi e. the elderly ‘ As of 2006, roughly what percent of the U.S. population was living in pover_ty? a. 22% ' b. 15.3% X 12.7% d. l 1% e. 8.8% The official [_J.__S_._ poverty line is calculated as 3 times the annual cost of: a. public housing b. basic medical care c. rent, utilities and transportation (1. food, clothing and shelter X a minimally adequate diet 17. If a sizable number of workers were switched from part-time to full-time employment, then the— official unemploment £1:th would: a. rise b. fall X remain unchanged d. react unpredictany 18. Which of the following people would be classified as structurally unemployed? a. computer programmers who lost their jobs because of a recession in the economy ‘0. construction workers who are on temporary layoff after completion of a job c. loggers who lost their jobs because of harsh winter weather X textile workers who lost their jobs because of new foreign competition 19. The economy is filly employed when there is no: X cyclical unemployment b. structural unemployment c. frictional unemployment d. seasonal unemployment e. unemployment of any kind 20. In the United States, the unemploment page is roughly the gamufor: ' blacks and whites men and women c. whites (non-Hispanics) and Hispanics .d. - black females and white females e. those who have graduated from high school and those who have not X9: 21. Fully retired persons are officially classified as: a. unemployed I ' b. self—employed c. underernployed _;( not in the labor force e. near death 22. Some critics argue that the official civilian unemployment rate understates the true extent of a nation’s unemployppent. Which of the following groups is most often cited as evidence supporting Q11}, criticism? teachers and other seasonally employed workers A a. i discouraged workers who have given up their job searchin c drug dealers and others employed in the underground economy - (1 men and women who are in the military 23. Companies subject to the Workers Adjustment grid Retraining Notification Act (WARN) must, before laying off employees, give and provide: a. retraining of adversely affected employees b. 2_ weeks notice or pay in the lieu thereof 0. paid group insurance coverage for at least six months after such layoff X at least 60 days notice for a mass layoff (as defined in the Act) or plant closing e. out placement counseling . Use the following information to answer questions 24-27 ' Persons over 65 years of age not working and not seeking employment 200,000 Persons 16 years of age and older 900,000 Persons 16 years and older working part-time 80,000 Persons 16 years and older working full-time 525,000 Persons between 16 and 65 not working, but actively seeking employment 15,000 I Persons over 65 not working, but actively seeking employment 5,000 Homemakers , 35,000 Persons 16 years and older going to school full time (not working nor looking for work) 100,000 Persons 16 years and older who are institutionalized ' 50,000 Persons under 16 years of age 100,000 Mili ersonnel 5 000 24. Calculate the number of persons in the civilian labor force a. 525,000 b. 605,000 c. 620,000 X 625,000 _ e. 660,000 . 25 . Calculate the number of persons. who are unemployed a. 5,000 b. ' 15,000 )( 20,000 (1; 25,000 6. 55,000 26. Calculate the unemploment rate: a. 6% ' b. _ 3.4% c. 4% X 3.2% e. 2.1% 27. Cal ulate the approximate civilian lag fol-fl participation rate )2 74% ' . b. 70% c. 68% d. 65% e. 60% 28. Government subsidization of education can be justified: a. ' if there are few external benefits associated with education X in order to increase access for lower-income students c. if education enhances the earnings of individuals d. if individuals can easily borrow to finance their education 29. 30. 31. 32. 34. 35. _ x X Stu ies indicate that the subsidies received by university students tend to be distributed: disproportionately to high-income students disproportionately to low-income students b. 0. equally between high- and low-income students (1. equally between middle and low-income students Suppose private lenders are unwilling to lend money for purposes of paying for a higher education. As a result of this capital market failure, government should: a. subsidize loans b. provide grants _ c. guarantee loans at a rate somewhat below the market rate of interest guarantee loans at the market rate of interest Which of the following would NOT account for the increased income inmuality in the US. in recent years? immigration particularly illegal immigration the shift from goods production to service sector jobs declining union membership globalization, mergers, buyouts and acquisitions the progressive income tax a. b. c. d. The Temporary Assistance for Needy Families-Program, TANF, was to a. the earned income tax credit b. child care tax credits c. 381 X AFDC 6. food stamps According to the Temporary Assistance for Needy Families Program, (TANF), households are _ a. two b. four X five d. ten e. there is no limit Which of the following is NOT considered as a program that would reward workers for their wor efforts? and increase in the time fi'ame (# of years) for receiving TANF benefits b. raising the minimum wage c. providing wage subsidies d. expanding the earned income tax credit Each of the following would be considered a member of the civilian labor force except: 3. Jim who worked 18 hours as an unpaid employee in a family business b Teresa, a sixteen year old who works part~tirne at Fast Food Burger Emporium John who is not employed, would like to be, but is no longer seeking employment d. Mark who was previously employed full-time, but is now on strike Use the following table to answer question 36. Discouraged workers Homemakers Individuals working part—time Individuals working lull-time Individuals seeking employment Full-time college students 36. The number of people in the civilian labor force is: x 195,500 '0. 240,500 0. 277,500 (1. 307,500 30,000 45,000 25,000 155,000 15,500 37,000 37. Scott has worked atSwifi Industries for the past five years. A downturnin the economy has forced the company to layoff some of its work force. Scott is among those who loses his job during the cutbacks. Scott is currently experiencing: a. structural unemployment b. underemployment _ c. frictional unemployment X cyclical unemployment e. seasonal unemployment 38. Earl has worked on the assembly line at Rust Belt Industries for the past twenty years. He recently lost his job because Rust Belt has employed a new technology that requires less labor. Although there are numerous jobs listed in the paper, Earl still remains unemployed. Earl is most likely experiencing: X structural unemployment b cyclical unemployment c frictional unemployment d. temporary unemployment e seasonal unemployment .39. Gina recently moved to Tucson. She had a job offer, but did not accept it because-she wants a higher paying position with better benefits. Gina is most likely experiencing: structural unemployment a. X frictional unemployment c cyclical unemployment d e over employment opportunities , valley fever 40. When the overall level of economic activity declines, cyclical unemployment b. frictional unemployment c. structural unemployment (1. natural unemployment e. seasonal unemployment OCCUI’S. 41. The major source of revenue for private universities as_ g whole compared with public universities is: a. state government b sales and services K tuition and fees d. federal government e. endowment income 42. Which of the following statements is true? a. Income distribution in the United Sates has gotten progressively more unequal since 1929. ' b. The Lorenz curve indicates the degree of discrimination in an economy. X The Lorenz curve indicates the degree of income inequality in an economy. (:1 The richest 5 percent of Americans earn approximately half of the nation’s income. e. The Lorenz curve shows the degree of wealth inequality in an economy. 43. Individuals in households headed by females are more likely to _l_i_y_e E poverty because: a. family income generally falls as a result of divorce . b. it may be difficult for a mother particularly who has never been married to collect child support 0. females generally have had less education than males, and therefore may be able to 7 obtain only lower—paying jobs compared to males X all of the above 44. Which of the following would explain why discrimination is go; the major factor in determining poverty rates among various ethnic groups? a. females tend to be employed in lower paying occupations b. earning differentials between white males and others is smaller among individuals with less education K the single largest group of people in poverty is families headed by white males (1. 7 poverty rates persist even though earnings differentials have narrowed overtime e. none of the above - 45. In 2006, the median income for households (adjusted for inflation) in the United States was about: x $43,000 b. $57,000 0. $67,000 (1. $73,000 e. $45,000 46. Census data indicate that currently the t_op fifth of all families in the US. receive slightly more than times as much income as the bottom fifth. a. fifteen X twelve c. ten d. eight e six 47. 48. 49. 50. The Gini ratio: a. h. K measures the relative extent of poverty in a nation compares the income of persons, households, or families at the 90th percentile of the income'distribution to the income at the 10th percentile. is a numerical measure of the overall dispersion of income in a nation is found by dividing the entire area below and to the right of the diagonal in the Lorenz diagram by the area between the diagonal and Lorenz curve i erences in the amounts and quality of education and training: %'_‘ . combine with differences in mental, physical, and aesthetic talents to produce income b. c. d. inequality explain none of the income inequality in the United States explain nearly all of the income inequality in the United States have lessened in the United States in the past decade, sharply reducing income inequality Which of the following would likely reduce income inequality? more stringent requirements to obtain occupational licenses a. b. greater inequality in the distribution of wealth c. a reduction in social security benefits X a reduction in the number of high school dropouts e. lower income tax rates for all households Which is correct? Wealth is less equally distributed than income and therefore increases income inequality. b. Wealth is more equally distributed than income and therefore increases income inequality. 0. Wealth is less equally distributed than income and therefore decreases income inequality. d. Wealth is more equally distributed than income and therefore decreases income inequality. ' _ Wealth is a “flow” variable, which income is a “stock” variable. ...
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This note was uploaded on 04/07/2009 for the course INDV 002 taught by Professor Mcbrearty during the Spring '09 term at University of Arizona- Tucson.

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ex3Spring 08 - MULTIPLE CHOICE QUESTIONS (Show all your...

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