Question 1

A Lorenz curve showing the current distribution of pre-tax income in Canada is not an entirely accurate depiction of Canadian income distribution because

Accepted Answer

The answer of A Lorenz curve showing the current distribution...

Question 2

When studying income distribution,the Classical economists were primarily concerned with the distribution of income among

Accepted Answer

Classical economists focused on the distribution of income among the three main classes in society: workers, capitalists, and landowners.

Question 3

A Lorenz curve shows the

Accepted Answer

A Lorenz curve is a graphical representation of the distribution of income across households in a country. It shows the cumulative share of income earned by different percentiles of the population, ranked from lowest to highest income. The closer the Lorenz curve is to the diagonal line (the line of perfect equality), the more equal the distribution of income. The further the Lorenz curve is from the diagonal line, the greater the degree of inequality. Therefore, a Lorenz curve shows the degree of inequality across households in the distribution of income.

Question 4

Median family income (pre-tax)in Canada in 2012 was closest to

Accepted Answer

The answer of Median family income (pre-tax)in Canada in 2012...

Question 5

FIGURE 14-7
-Refer to Figure 14-7.Which point shows that 100% of families earn 100% of the income?

Accepted Answer

The answer of  FIGURE 14-7
-Refer to Figure 14-7.Which point...

Question 6

Researchers are trying to identify the causes of rising income inequality in various economies.Important forces that are almost certainly contributing are:
1)globalization
2)rising rates of personal income tax
3)skill-biased technological change

Accepted Answer

Globalization has led to the outsourcing of jobs to countries with lower labor costs, leading to increased competition for jobs and lower wages for workers in developed countries. This has contributed to rising income inequality. Skill-biased technological change has increased the demand for highly skilled workers, leading to higher wages for those with specialized skills and education, and lower wages for workers in less-skilled jobs. This too has contributed to rising income inequality. There is no evidence to suggest that rising rates of personal income tax have contributed to rising income inequality.

Question 7

An important unanswered question about the role of unions in developed economies is whether the presence of unions affects long-run productivity.There is some evidence to suggest that the presence of a union

Accepted Answer

The answer of An important unanswered question about the role...

Question 8

If Canada's Lorenz curve began changing such that it bends further from the diagonal line and becomes more curved,this would be an indication that

Accepted Answer

A more curved Lorenz curve indicates a greater degree of income inequality, meaning that the distribution of income in Canada is becoming more unequal.

Question 9

FIGURE 14-7
-Refer to Figure 14-7.Which point shows that 20% of families earn almost 40% of total income?

Accepted Answer

The answer of  FIGURE 14-7
-Refer to Figure 14-7.Which point...

Question 10

The diagonal line on a Lorenz curve diagram represents

Accepted Answer

The diagonal line on a Lorenz curve diagram represents where the Lorenz curve would be if there were complete income equality. Therefore, choice E is the correct answer. Choices A, B, C, and D are all incorrect because they do not accurately describe the diagonal line on a Lorenz curve diagram.

Question 11

The "functional distribution of income" refers to the distribution of income

Accepted Answer

The functional distribution of income refers to the distribution of income among the major factors of production, such as wages for labor, rent for land, interest for capital, and profits for entrepreneurship. It is not related to social classes, industrial nations, government or economic sectors.

Question 12

FIGURE 14-7
-Refer to Figure 14-7.Which point shows that the bottom 60% of families earn just under 40% of total income?

Accepted Answer

The answer of  FIGURE 14-7
-Refer to Figure 14-7.Which point...

Question 13

FIGURE 14-7
-Refer to Figure 14-7.The diagonal line in the diagram

Accepted Answer

The diagonal line in the diagram shows where the Lorenz curve would be if there were complete income equality. The Lorenz curve is a graphical representation of the distribution of income in a society, and by comparing it to the diagonal line, we can see how unequal the distribution of income is in reality.

Question 14

Suppose all Canadians earned equal incomes.In this case,Canada's Lorenz curve would be

Accepted Answer

The answer of Suppose all Canadians earned equal incomes.In this...

Question 15

One of the most unionized industries in Canada is

Accepted Answer

Education is one of the most unionized industries in Canada, with a high percentage of teachers, support staff, and professors represented by unions. In fact, approximately 70% of public school teachers in Canada are unionized.

Question 16

The "size distribution of income" refers to the distribution of income

Accepted Answer

The "size distribution of income" refers to the distribution of income among different individuals without reference to the source of the income. It's about how income is distributed among the population regardless of where it comes from.

Question 17

FIGURE 14-7
-Refer to Figure 14-7.On the Lorenz curve shown in the diagram,

Accepted Answer

The answer of  FIGURE 14-7
-Refer to Figure 14-7.On the...

Question 18

Much attention is being paid to the issue of rising income inequality.A serious aspect of this issue,especially in the United States and the United Kingdom ,is that even though average per capita income has been growing,

Accepted Answer

This choice correctly identifies that the majority of income growth is going to the highest earners, contributing to rising income inequality. The other choices either do not accurately reflect the issue or are not supported by the text.

Question 19

In a Lorenz curve diagram,the size of the area between the Lorenz curve and the diagonal line represents

Accepted Answer

The area between the Lorenz curve and the diagonal line represents the degree of inequality in the distribution of income. A smaller area implies closer income equality, while a larger area implies greater income inequality. Therefore, option A is the correct answer.

Quiz 14: Labour Markets and Income Inequality

A Lorenz curve showing the current distribution of pre-tax income in Canada is not an entirely accurate depiction of Canadian income distribution because

When studying income distribution,the Classical economists were primarily concerned with the distribution of income among

A Lorenz curve shows the

Median family income (pre-tax) in Canada in 2012 was closest to

FIGURE 14-7 -Refer to Figure 14-7.Which point shows that 100% of families earn 100% of the income?

Researchers are trying to identify the causes of rising income inequality in various economies.Important forces that are almost certainly contributing are: 1) globalization 2) rising rates of personal income tax 3) skill-biased technological change

An important unanswered question about the role of unions in developed economies is whether the presence of unions affects long-run productivity.There is some evidence to suggest that the presence of a union

If Canada's Lorenz curve began changing such that it bends further from the diagonal line and becomes more curved,this would be an indication that

FIGURE 14-7 -Refer to Figure 14-7.Which point shows that 20% of families earn almost 40% of total income?

The diagonal line on a Lorenz curve diagram represents

The "functional distribution of income" refers to the distribution of income

FIGURE 14-7 -Refer to Figure 14-7.Which point shows that the bottom 60% of families earn just under 40% of total income?

FIGURE 14-7 -Refer to Figure 14-7.The diagonal line in the diagram

Suppose all Canadians earned equal incomes.In this case,Canada's Lorenz curve would be

One of the most unionized industries in Canada is

The "size distribution of income" refers to the distribution of income

FIGURE 14-7 -Refer to Figure 14-7.On the Lorenz curve shown in the diagram,

Much attention is being paid to the issue of rising income inequality.A serious aspect of this issue,especially in the United States and the United Kingdom ,is that even though average per capita income has been growing,

In a Lorenz curve diagram,the size of the area between the Lorenz curve and the diagonal line represents