Third Midterm Spring 2007

Third Midterm Spring 2007 - Multiple Choice. Choose the...

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Unformatted text preview: Multiple Choice. Choose the best answer. Use the following diagram to answer questions 1-6. A i 4 47 H Experience (Years) 1. The earnings foregone as a result of obtaining a university education is represented by area: ' a. F b. E + F c. A + B X B e. A 7 2. The additional earnings associated with a university education are represented by area: a. B . b. B + F K E d. F e. A 3. The life-time earnings of a high school graduate are represented. by area: ' a. B ' _ X B + F _c. F + E 7 ' d. B + F + E e. A + B + F _ 4. in order forthe individuals to consider investing in a university education: area E must exceed area A + B area A + B must exceed area E area E must exceed area B area B must exceed area E area E must exceed area. A + B + F x99 e9) 5. if the non-monetam benefits of an education were taken into consideration, then: a. areas A, B, and E would decrease b. areas A, B, and E would increase c. areas A and B would increase d area F would decrease X area E would increase 6. The cost of tuition, books, and fees incurred during a university education is _ represented by area; a. E . b. A + B c. F x’ A e. B 7. It may be particularly or esgecially difficult to place a dollar value on: the increased earnings an individual receives as a result of a university education the foregone earnings an individual gives up in order to receive a university university education - the cost of tuition, books, and fees incurred while getting a university education a. b. educaflon X the enhanced value of ieisure that an individual receives as a result of a d. e; all of the above 7 8. W t is the best examgle of the indirect costs of a university education? foregone earnings from attending school instead of working b. books, lab fees, and other such items c. transportation expenses such as the upkeep on your automobile d. tuition e. room and board 9. State ta_x aggrogriations to gublic universities: have been increasing on a per student basis are increasing as a percentage of state budgets benefit mainly low—income students d. benefit students of all income levels equally X mainly benefit middle- and high-income students 10. The rinci ai source of funds for grivate universities is: K. tuition ' 9U?” b. income from their endmeents c. safes _ d. research grants from the federal government e. state and federal aid 11. The theory of investment in human capital indicates that high-school graduates shouid a. not go to university but invest what they would have spent on education in the stock market b. go to university whatever the effects on earnings and costs in the short-run c. only go to a university if they receive financial aid X go to university if the increased earnings from a university education are greater than the sum of the direct and indirect costs of a university education e. go to university if the increased earnings from a university education are greater than the direct costs of university education 12-. Joe is a student at Great Big University. His tuition is $15,000 a year. He spends $2,300 per year on books and supplies, and $800 per year on university fees. He would be able to earn $25,000 by working if he were not in school, but he can only work part- time while in school, so his earnings are only $9,000. What are Joe’s opportunity ggsts for a year of university? a. $43,100 X $34,100 0. $27,100 d. $18,100 e. $16,000 13. The maior government subsidy to students at gublic universities is: a. Peli grants b. Stafford loans ' K State appropriations d. the Hope tax credit e. ' the Lifetime Learning tax credit .14. For the University of Arizona class of 2006, starting salaries were highest for which of the following majors? _ Accounting Management information Systems Business Economics Computer Science . _ Engineering x19 .65» 15. Which of the following is grimarily used to rationalize subsidies to university students? subsidies ensure low-income students greater access to higher education university graduates are less likely to engage in criminal behavior a university education may increase the value of one’s leisure time children of university graduates may experience greater levels ofinteliectual development _ university graduates report being in better health than high schooi graduates SD sleek 16. Federal money awarded to university students on the basis of need is known as a(n): a. 529 plan A b. tuition subsidy c. guaranteed student loan X Peil grant e. appropriation Use the following information to answer question 17. Earnings Per Year A e Hi h School Colle e Graduate 25—34 $26,000 $38,000 35-44 29,000 48,000 45-54 33,500 55,000 55-64 36,000 64,500 17. What is the tgtgl lifetime earnings differential? a. $68,000 ' b. $80,945 0. $680,000 d. $711,000 X $810,000 18. in the quintile distribution of income, the term "quintile" represents: a. 5 percent of the income receivers ‘ b. 10 percent of the income receivers . c. - 15 percent of the income receivers 20 percent of the income receivers "e. 25 percent of the income receivers 19. The lowest guintile of families in the income distribution system in the U8. receives about . _ a. 1 percent of the total income b. 2 percent of the total income X 4 percent of the total income . 6 percent of the total income ' e. 8 percent of the total income 20. if the top quintile (fifth) of all families receives 50 percent of total income and the lowest quintile receives about 4 percent of total income, we can conclude that: ‘ the resulting Lorenz curve will be a 45—degree straight line the Lorenz curve for this country would be representative of Mexico the middle quintile must receive 46 percent of all income government must be subsidizing the top quintile the top quintile receives just over twelve times as much income as the lowest quintile 0.691 XL- 21. 22. 23. 24. 25. The share of income going to the highest 20 percent of income receivers is: AV e. 99 nearly 75 percent in the United States lower in the United States than in some South American countries such as Mexico, Guatemala, and Brazil lower today in the United States than in 1969 remarkably similar over a wide range of nations, including those which are rich - and those which are poor almost the same for Canada and the United States Th Lorenz curve shows the: Sup-PP". degree of inequality in the distribution of income progressiveness of the Federal tax system degree of discrimination against blacks and other minorities percentage of the population that is below the poverty line degree of inequality in the distribution of wealth The Gini ratio of income inequality ranges between: a. b. c. e. 0 and 10,000 1 and 10 -'l and +1 0 and “i 0 and 5 People’s incomes are relatively low when they are young, reacha peak in middle age, and then decline. This fact helps explain: 5? c. d. e. the wide variations of Gini ratios among nations why the lifetime distribution of income is more equal than the distribution in any given year the equality-efficiency tradeoff why the lifetime distribution of income is less equal than the distribution in any given year none of the above _ Some economists have criticized standard government figures on income inequality, _ arguing that these data: a. b. c X e. exclude families whose earnings arise in the public sector conceal the strong trend toward greater equaiity in family sizes conceai the growth of poverty due to a growing number of discouraged workers overstate the degree of income inequaiity by failing to include non—cash transfers as income inciude earnings from stocks and bonds as well as wages and salaries ' 26. 27. 28. 29. 30. Each of the following contributes to income inequality except: a. differences in ability and training ' b. differences in types of job K government transfer payments . differences in wealth ownership e. differences in the number of income earners in households Wealth in the United States is: a. distributed in a way that reduces the degree of income inequality more unequally distributed than is income 0. less unequally distributed than is income d. distributed in a way that has no effect on income inequality e. comprised only of financial assets The term "growing income inequality” implies that the: a. poor are getting poorer in both a relative and an absolute sense b. Lorenz curve is shifting toward the diagonal ' - c. diagonal is shifting toward the Lorenz curve , d. the lowest quintile of income receivers are having their wages and salaries reduced in absolute dollars _ X top quintile of income receivers is getting relatively more of the total income than before and the bottom quintile is getting relatively less The US income maintenance program consists of two kinds of programs. They are: a. the minimum wage law and Social Security b. antidiscrimination law and education and training programs X social insurance and public assistance or welfare d. progressive income taxes and transfer payments e. cash and non-cash welfare programs For which of the following income-maintenance programs is aggregate spending the r atest?- %. Social Security . Medicare c. d. e. unemployment compensation TANF Medicaid Use the following to answer questions 31-33. Answer the next question(s) on the basis of the following information about the hypothetical economy of Braione. All figures are in millions. Not in the iaborforce 45 Unemployed 7 Total population 145 Employed 95 ' Discouraged workers 3 31. Refer to the above information. The labor force in Braione is: a. 95 million X 102 million 0. 105 million d. 145 million e. 98 million 32. Refer to the above information. The unemployment @ in Braione is approximately: a. 2.5 percent b. 3.2 percent c. 5.4 percent X 6.9 percent e. 7.5 percent 33. Refer to the above information. lfthe natural rate of unemployment in Braione is 5 percent, then: a. structural unemployment is approximately 3 percent b. frictional unemployment is approximately 2 percent K cyclical unemployment is approximately 2 percent d. hidden unemployment is approximately 5 percent e. there is no cyclical unemployment 34. The United States' economy is considered to be at fu_ii employment when: a. 90 percent of the total population is employed b. 90 percent of the iaborforces is employed c. everyone is getting overtime work d.. 100 percent of the labor force is employed about 4 percent of the labor force is unemployed he laborforce include-s: _ X employed workers and persons who are officially unemployed b c d e _l 35. employed workers, but excludes persons who are officially unemployed full—time workers, but excludes part-time workers permanent employees, but excludes temporary employees - everyone 16 years or age and over 36. Anne Kasperson works in her own home as a full-time wife and mother,. Officially, she rs: a. unemployed b. employed ){l not in the laborforce d. in the labor force e. none of the above 37. If the unemployment fie, is g percent and the natural fit; of unemployment is 53 - percent, then the: _ a. frictional unemployment rate is 5 percent b. cyclical unemployment rate and the frictional unemployment rate together are 5 percent c. the natural rate of unemployment is equal to the cyclical rate of unemployment d. natural rate of unemployment will eventually increase X cyclical unemployment rate is 4 percent 38. Official unemployment statistics: Understate unemployment because individuals receiving unemployment a. ' compensation are counted as employed. X understate unemployment because discouraged workers are not counted as unemployed c. include cyclical and structural unemployment, but not frictional unemployment d. overstate unemployment because workers who are .involuntarily working part- time are counted as being employed ‘ e. overstate unemployment since most unemployed workers are working for cash in the underground economy 39.- Part-time workers are Counted as: a. unemployed and therefore the official unemployment rate may overstate the level of unemployment ' b. unemployed and therefore the official unemployment rate mayunderstate the level of unemployment 0. fully employed and therefore the official unemployment rate may overstate the level of unemployment _ X fully employed and therefore the official unemployment rate may understate the level of unemployment e. one-half of a full-time worker 40. in recent decades, during periods of full employment in the U.S., the: burden of unemployment is quite evenly distributed among males and females. blacks and whites, and young and old workers unemployment rate for teenagers is similar to the rate for the labor force as a unemployment rate for women has been considerably lower than that for men a. b. whole % unemployment rate for blacks has been about twice the rate for whites d. e. Hispanics have had the highest unemployment rates 4’1. Suppose there are 5 million unemployed workers seeking jobs. After a period of time, ‘1 million of them become discouraged over their job prospects and cease to look for work. As a result of this, the official unemployment rate would: a. increase in the short run but eventually decline over a period of years b. increase ' ' c. impossible to tell d. be unchanged X decline 42. Adrianna has lost herjob in a Massachusetts textile plant because of imgort competition. She intends to take a short course in electronics and move to California where she anticipates that a new job will be available. We can say that Adrianna is ex eriencing: . structural unemployment b. cyclical unemployment c. secular unemployment d. frictional unemployment e. seasonal unemployment 43. Which-of the following is correct? a. Unemployment rates for black and white workers are approximately the same. X, The unemployment rates of men and women workers are now roughly the same. c Teenagers experience approximately the same unemployment rates as do adults. - d. Laborers are less vulnerable to unemployment than are professional workers e. Blacks, Hispanics and Native Americans all have similar unemployment rates 44. A university graduate using the summer following graduation to search for a job would best be Classified as: a. not officially a member of the labor force . b. a part of structural unemployment c. a part of cyclical unemployment % a part of frictional unemployment e. a discouraged worker 45. Which of the following constitute the unemployment occurring at the natural rajg of unemgloyment? a. frictional and cyclical unemployment b. cyclical and structural unemployment X, structural and frictional unemployment d frictional, structural, and cyclical unemployment e. cyclical unemployment only 46. Suppose there are ‘10 million part-time workers and 90 million full-time workers in an economy. Five million of the part-time workers switch to full-time work. As a result:- the official unemployment rate will fall ' the official unemployment rate will rise the economy will be considered to be at full employment the'siz‘e of the labor force will increase ' the official unemployment rate will remain unchanged Xena?) _ Use the following to answer questions 47-50. Percent of income Percent of families 4?. Refer to the above diagram where curves (a) through (e) are for five different countries. income is equally distributed in: a. none of the countries shown country b country 0 country d b. c.' d. , X country a 48. Refer to the above diagram where curves (a) through (e) are for five different countries. ' T e Gini ratio is lowest in country: 49. Refer to the following diagram where curves (a) through (e) are for five different countries. Of the countries listed below, income is most unegually distributed in country: ' 50. Refer to the above diagram where curves (a) through (e) are for five different countries. The Gini ratio is: a. zero in country (e) and 1 in country (a) b. greater in country (b) than in country (c) X zero in country (a) and 1 in country (e) d. 0.5in countrye e. higher in country (a) then in country (e) ...
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This note was uploaded on 04/30/2008 for the course INDV 103 taught by Professor Mcbrearty during the Spring '08 term at University of Arizona- Tucson.

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Third Midterm Spring 2007 - Multiple Choice. Choose the...

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