Question 1

Affirmative action programs,

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Question 2

In the Santa Rita silver mines in Arizona in 1870, Mexican miners received about $12 per month while "American" miners received $70.Although the wages of both groups tended to rise over time, the gap persisted until at least 1910.Mexican and American miners did the same work and were equally productive.Economists call this pay differential

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Question 3

Economists favor a negative income tax because they believe

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Economists believe that a negative income tax is more efficient than the existing welfare system because it provides better work incentives. They argue that the current welfare programs have excessively high work disincentives, which result in less total work. They do not favor it simply because it will create more jobs for economists to monitor the program. Therefore, option A is incorrect. Option D is not entirely correct as option B is false.

Question 4

Assume that a company has several male workers who do not give their full cooperation to female supervisors making them less effective as supervisors.Economists would refer to this type of situation as ____.

Accepted Answer

This situation is an example of discrimination by fellow workers, where the male workers are actively undermining the effectiveness of their female supervisors. Statistical discrimination refers to making assumptions about an individual based on group averages, discrimination by employers refers to discriminatory practices in hiring and promotion, and non-discrimination refers to treating all individuals equally without regard to their gender, race, or other personal characteristics.

Question 5

Which of the following taxes tend to make income distribution in the United States more equal?

Accepted Answer

Personal income taxes are progressive, meaning that higher-income individuals pay a higher percentage of their income in taxes than lower-income individuals. This can help to make income distribution more equal. Sales taxes (A) and payroll taxes (C) are regressive, meaning that lower-income individuals pay a higher percentage of their income in taxes than higher-income individuals, and therefore tend to make income distribution less equal.

Question 6

A free market system tends to

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In a free market system, individuals are rewarded based on their level of productivity and success in the market. This means that those who are successful and productive tend to earn more income, leading to a relatively unequal distribution of income. While some people may earn less than they are worth, there is no guarantee that everyone will receive exactly what they are worth in a free market system.

Question 7

The public assistance program that economists believe can promote economic equality at the least cost in economic efficiency is

Accepted Answer

Economists believe that a negative income tax (NIT) is the public assistance program that can promote economic equality at the least cost in economic efficiency. This is because a NIT provides a guaranteed minimum income to all individuals, including those who are not working, which can help level the playing field and reduce poverty without creating disincentives for people to work or causing market distortions. Additionally, a NIT can be administered relatively efficiently and can be targeted to those who need it most.

Question 8

A man may be preferred to a woman by an employer who will make a substantial investment in the training of the employee because

Accepted Answer

This is because women tend to have more interruptions in their career due to family responsibilities, such as maternity leave and caring for children. Therefore, an employer may be more hesitant to invest in training a female employee who may not be able to commit to the job long-term. This is not to say that it is fair or justified, but it is a common reason why a man may be preferred over a woman for certain positions. The other choices are not valid reasons for preferring a male employee.

Question 9

Critics of affirmative action programs argue that they

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Question 10

Economic discrimination and prejudice

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Economic discrimination and prejudice often occur together. Prejudice and bias can lead to economic discrimination, where certain groups are excluded from economic opportunities based on factors such as race, gender, age, or religion. In statistical discrimination, discrimination is based on generalizations or stereotypes about a particular group, which can be driven by prejudice or bias. Therefore, while economic discrimination and prejudice may not be synonymous or mutually exclusive, they often go hand in hand.

Question 11

A tax is more likely to promote economic equality if it is

Accepted Answer

A progressive tax system imposes a higher tax rate on those with higher incomes, which can help redistribute wealth and promote economic equality. Regressive taxes, on the other hand, disproportionately affect low-income earners, while proportional taxes may not take into account the ability of individuals to pay. Indirect taxes are levied on goods and services rather than individuals and may also have regressive effects.

Question 12

In the United States, the distribution of income after the income tax is ____ the distribution of income before the income tax.

Accepted Answer

The income tax system in the United States is progressive, meaning that higher-income individuals pay a higher percentage of their income in taxes than lower-income individuals. This helps to redistribute income and narrow the gap between the rich and poor, making the distribution of income slightly more equal than before the income tax is applied. However, this effect is not significant enough to make the distribution of income "greatly" more equal than before the income tax.

Question 13

Who would receive payments from the government under a negative income tax system?

Accepted Answer

Only people with incomes below a certain level would receive payments from the government under a negative income tax system. The purpose of the system is to provide support for those in poverty or with low incomes.

Question 14

Affirmative action programs are intended to combat

Accepted Answer

Affirmative action programs are specifically designed to counter discriminatory practices by employers, including those based on race, gender, ethnicity, or other protected characteristics. While these programs may also have an impact on issues like poverty and economic inequality, their primary purpose is to address ongoing discrimination and promote greater diversity and inclusion in the workforce. They are not aimed at addressing concerns related to "comparable worth" systems of compensation, which focus on issues of pay equity between different job roles or categories.

Question 15

Many economists believe that

Accepted Answer

Many economists believe that replacing the current welfare system with a negative income tax would increase both economic efficiency and economic equality. The negative income tax would provide a guaranteed income floor to those who are struggling, encouraging work and incentivizing productivity. Furthermore, it simplifies the current complicated welfare system, reducing administrative costs and potentially lowering taxes. Therefore, a negative income tax system would likely lead to more economic equality without reducing overall economic efficiency.

Question 16

With a negative income tax, the larger the difference between the break-even income level and the guaranteed level,

Accepted Answer

A larger difference between the break-even income level and the guaranteed level creates a greater incentive for individuals to work because they can earn additional income without losing benefits at a faster rate. This can lead to increased labor force participation and productivity.

Question 17

The economic theory of discrimination suggests that the practice of apartheid in South Africa should have

Accepted Answer

The economic theory of discrimination suggests that discrimination based on race, ethnicity, or gender leads to inefficient resource allocation, reducing the economic welfare of both the discriminators and the victims. The practice of apartheid in South Africa aimed to systematically marginalize and suppress the non-white population, including blacks, coloreds, and Indians, from the political, social, and economic mainstream. As a result, the apartheid regime created a dual economy, where the whites enjoyed disproportionately high incomes and standards of living, and the non-whites were confined to low-skilled, low-paying jobs, inadequate education, and poor public services. This unequal distribution of resources and opportunities led to widespread poverty, inequality, and social unrest. Therefore, it is reasonable to assume that the economic condition of both the whites and non-whites in South Africa was worsened by apartheid, especially in the long run.

Question 18

Tax loopholes serve to

Accepted Answer

Tax loopholes often benefit the wealthy and allow them to avoid paying their fair share of income taxes, thereby reducing the progressivity of the income tax system. This ultimately leads to a greater burden on middle-class and lower-income earners. Loopholes can also disincentivize work and investment for those who are unable to take advantage of them.

Question 19

The basic idea behind a negative income tax is to

Accepted Answer

The basic idea behind a negative income tax is to help the poor without destroying their incentives to work. This is achieved by providing financial assistance to those who earn below a certain income level, while gradually reducing the amount of assistance as their income increases. This encourages recipients to work and earn more, as they can keep a larger portion of their earnings without losing the assistance entirely. Unlike traditional welfare programs, which can create a disincentive to work, a negative income tax is designed to support work and self-sufficiency.

Question 20

If labor markets are competitive, discriminating employers

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Quiz 21: Poverty, Inequality, and Discrimination