Question 1

What factors explain why high-skilled workers are paid more than low-skilled workers?

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Question 2

Of age, marital status, family size, education, and race, which is the single biggest factor affecting the household income distribution?

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Question 3

What is the difference between market income and money income? Which is more equally distributed?

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Question 4

At any wage rate, the quantity of welders willing to work is less than the quantity of tomato pickers. Why?

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Question 5

What is the Gini ratio?

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Question 6

Is the poverty rate the lowest among Hispanic households, black households, or white households?

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Question 7

-The above table shows the distribution of income in two imaginary countries, Alpha and Beta.
a) What does the table tell you about the second 20 percent group in each country?
b) Calculate the cumulative percentage for both countries.
c) Interpret the cumulative percentage for the third 20 percent group in both countries.

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-The above table shows the distribution of...

Question 8

What is meant by the term "assortative mating" and how does it affect the distribution of wealth?

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Question 9

What factors make inheritances a source of increased economic inequality?

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Question 10

-The above table shows the distribution of income in two imaginary countries, Alpha and Beta.
a) In the figure above, draw the Lorenz curves for Alpha and Beta.
b) Compare the distribution of income in Alpha with that in Beta. Which distribution is more unequal?
c) What would be the distribution of income in a country with perfect income equality?

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-The above table shows the...

Question 11

How does the demand for high-skilled workers compare to the demand for low-skilled workers? Why does this difference exist?

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Question 12

Explain how redistributing income creates a deadweight loss.

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Question 13

Describe the effect education and training have on outcomes in the labor market.

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Question 14

Some economists argue that discrimination based on race and sex cannot lead to persistent wage differentials. What is their argument?

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Question 15

A government redistribution of income program is proposed with the aim of making the income distribution the same as the 45° line in a Lorenz curve diagram. What implications does the idea of the "big tradeoff" have for the program?

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Question 16

What is "human capital"? How is it important in the determination of a worker's wage rate?

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Question 17

"Over the past two decades, the distribution of income in the United States has become more equal." Is the previous statement or in? Briefly explain your answer.

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Question 18

What are the three ways that the government redistributes income in the United States? Briefly discuss each.

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Question 19

How has income inequality changed in recent years? What factors account for the changes?

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Question 20

With respect to income redistribution programs, what is meant by "The Big Tradeoff," and what causes it?

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Quiz 19: Economic Inequality