Question 1

How does an increase in the cost to acquire a skill affect the vertical distance between the supply curves of high-skilled and low-skilled workers?

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Question 2

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 3

-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 4

-The above table shows the distribution of income in two imaginary countries,Alpha and Beta.
a.In the figure below,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 distribution of...

Question 5

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

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Question 6

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 7

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

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Question 8

How is human capital acquired?

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Question 9

Describe the characteristics of the typical lowest income household in the United States and the characteristics of the typical richest household in the United States.

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Question 10

What is "human capital" and why is it considered an investment?

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Question 11

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

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Question 12

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 13

-The table above gives the average income received by each 20 percent group of households.Complete the table by finding the percentage of income earned by each group and the cumulative percentage of income.Label the figure below and then plot the Lorenz curve.

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-The table above gives the average income...

Question 14

What are three programs that redistribute income in the United States by making direct payments to people? Who benefits from each program?

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Question 15

What do the Lorenz curves for wealth and income in the United States look like? Which is closer to the line of equality?

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Question 16

Fully explain why it is a good idea for young people who are considering dropping out of high school to stay in school if the U.S.government pursues more liberal immigration policies over the next 20 years.

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Question 17

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

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Question 18

-The table above gives cumulative percent of income received by each 20 percent group of households.Label the figure below and then plot the Lorenz curves.In which nation is income more equally distributed?

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-The table above gives cumulative percent of...

Question 19

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

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Question 20

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

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Quiz 20: Economic Inequality