Deck 9: The Fading Dream: Economic Crisis and the New Inequality Elliottcurrie, Robert Dunn, and David Fogarty

Question 1

Baker identifies several deliberate policy choices that have created greater income inequality in the U.S. than ever before. Select one of these policies and discuss its impact on inequality.

Answer 1

not answered

Question 2

The share of the private sector workforce that is unionized rose from 8 percent in 1980 to 20 percent in 2005.

Answer 2

False

Question 3

The European Union EU) has generated jobs more rapidly that the U.S. since 2000.

Answer 3

True

Question 4

Which of the following best explains the high cost of health care in the U.S.?

A) The U.S. does not have universal coverage.
B) Per person health care costs are the same across income groups.
C) The U.S. has a relatively young demographic structure.
D) The real value of the minimum wage has decline in recent years.

Question 5

Which U.S. President brought in military air traffic controllers to replace striking civilian air traffic controllers, many of whom permanently lost their jobs as a result?

A) Reagan
B) Carter
C) Clinton
D) George H.W. Bush

Question 6

The United States has an "open border" immigration policy that enables immigrant workers who lack legal authority to work in many less-skilled jobs, such as custodians, restaurant works, and construction, without concern for deportation.

Question 7

What impact have union policies had on the private sector workforce since 1980? How have unions attempted to force corporations to recognize them?

Question 8

Private health insurance companies in the U.S. incur administrative costs that amount to an average of percent of the benefits they pay out.

A) 33
B) 20
C) 15
D) 5

Question 9

What impact have public policies had on American's incomes, according to Baker?

A) Americans in all income brackets have benefitted equally.
B) Low-wage workers' incomes are beginning to "catch up" to those of middle income workers/
C) The redistribution of wealth is causing rising equality in income.
D) The richest Americans have become richer, while low-income Americans' incomes have fallen.

Question 10

Some policy analysts argue that increasing income inequality in the U.S. is due to globalization and technology, while Baker argues that deliberate policy choices are to blame. Which argument do you find more convincing? Why?

Question 11

According to Baker, the Federal Reserve Board focuses mainly on controlling inflation, which depends on keeping unemployment high enough.

Question 12

The practice of hiring replacement workers to take the jobs of workers on strike was very rare until 1981 when striking civilian air traffic controllers where replaced with military air traffic controllers.

Question 13

Which of the following best describes the impact of the Federal Reserve Board raising interest rates?

A) controls inflation
B) employment falls among middle- and low-wage workers
C) increases in the share of the private sector workforce that is unionized
D) a and b above