quiz 7 chapter 7 - Self-Test Questions Chapter 7 Name:_...

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Self-Test Questions Chapter 7 Name:______________________________________________________________ (please print) 1. The statement, "measures of the distribution of income are based on money income" relates to which problem in measuring inequality? a. in-kind transfers b. economic life cycle c. transitory versus permanent income d. economic mobility 2. When the government taxes income as part of a redistribution program a. the poor pay higher taxes. b. the rich always benefit more than the poor. c. incentives for the poor to work are enhanced. d. incentives to earn income are diminished. 3. As a result of the trade-off between income equality and incentives to work, an optimal redistribution policy a. can never be funded through taxes on wage income. b. must always achieve a full egalitarian society. c. is only consistent with transfers to the middle class. d. always falls short of a full egalitarian society. 4. For most government programs that are designed to help the poor,
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quiz 7 chapter 7 - Self-Test Questions Chapter 7 Name:_...

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