Question 1

In the United States,the dramatic increase in government social spending since the mid-1960s has _____

Accepted Answer

While government social spending has increased since the mid-1960s, it has not greatly increased the money income share of the poorest fraction of the population. This means that while social programs may have helped alleviate poverty to some extent, they have not necessarily caused significant increases in income for the poorest individuals and families.

Question 2

A Lorenz curve shows the _____

Accepted Answer

A Lorenz curve shows the cumulative percentages of income received by cumulative percentages of households. It is often used to depict income inequality in a society by comparing the actual distribution of income to a perfectly equal distribution.

Question 3

According to census data households in the lowest,or poorest,fifth of the population received only _____ of the income in 1980,whereas households in the highest,or richest,fifth received _____of the income.

Accepted Answer

In 1980, households in the lowest fifth of the population received 4.3 percent of the income, while households in the highest fifth received 43.7 percent of the income.

Question 4

According to census data,approximately what percent of income in the United States did the third quintile of all households receive in 2015?

Accepted Answer

The third quintile, representing the middle-income households, typically receives a proportion of income that reflects the median distribution. In 2015, this was approximately 14.3 percent, indicating a distribution where the middle quintile does not hold a majority of the income, but more than the very lowest quintiles.

Question 5

Which of the following is not true about income quintiles in the United States?

Accepted Answer

The answer of Which of the following is not true...

Question 6

If the marginal productivity of labor was the sole determinant of household income in the United States,then _____

Accepted Answer

Even if the marginal productivity of labor is the sole determinant of household income, the distribution of income will still be unequal. This is because some households will have more productive workers than others, which will result in higher incomes. This means that there will be some households that are poor according to both the official and relative definitions of poverty. Therefore, there will still be a need for government programs to redistribute income.

Question 7

In a market economy,income depends mostly on _____

Accepted Answer

In a market economy, income depends mostly on earnings. This is because individuals earn income by providing goods and services in exchange for payment, and the amount they earn is determined by factors such as their skills, education, experience, and the market demand for their products or services. While inflation, economic growth, government policies, and household quintiles may all have some impact on income, earnings are the primary determinant.

Question 8

The share of the bottom fifth of the population in total income in the last two decades has _____

Accepted Answer

The share of the bottom fifth of the population in total income has decreased in the United States, largely due to the growth of single-parent households among other factors, which often results in lower household incomes.

Question 9

According to census data,approximately what percent of income in the United States did the highest quintile of all households receive in 2015?

Accepted Answer

In 2015, the highest quintile of all households in the United States received approximately 51.1 percent of the income, highlighting the significant income inequality present in the country.

Question 10

Census data on the income distribution among families in the United States from 1980 to 2015 show _____

Accepted Answer

Census data from 1980 to 2015 show that the share of income earned by the top fifth of families has been rising, while the share earned by the bottom fifth has been declining. This is indicative of an increasing income inequality gap in the United States.

Question 11

In the United States,most income comes from _____

Accepted Answer

The majority of income in the United States comes from providing labor resources, such as being employed and earning wages or salaries. While capital gains and owning stocks and bonds can contribute to income, they are not the primary sources. Illegal transactions are not considered income, and government transfer payments (such as welfare or unemployment benefits) make up a smaller portion of income for individuals.

Question 12

According to census data,approximately what percent of income in the United States did the second quintile of all households receive in 2015?

Accepted Answer

The second quintile of households, which represents the second 20% group from the bottom in terms of income distribution, typically receives a small portion of the total income. In the United States, income distribution is skewed, with the top quintile (or 20%) receiving a disproportionately large share. The second quintile would receive more than the lowest quintile but significantly less than the highest. 8.2 percent is a realistic figure for the share of total income received by the second quintile, reflecting the uneven distribution of income but indicating a share larger than the very bottom quintile.

Question 13

Identify the correct statement about the distribution of income in the United States in the last two decades.

Accepted Answer

The share of income of the highest fifth quintile has increased in the last two decades because of an increase in the number of double-income households. This is supported by data from the U.S. Census Bureau, which shows that the number of dual-earner households has increased over the past two decades, leading to an increase in household income for those in the top quintile.

Question 14

According to census data,approximately what percent of income in the United States did the fourth quintile of all households receive in 2015?

Accepted Answer

The fourth quintile, or the second highest income group, typically receives a significant portion of total income but not the majority. In 2015, this group received approximately 23.2 percent of total income in the United States, reflecting the distribution where the highest quintile usually has a much larger share, often around or over 50 percent.

Question 15

In a market economy,the level of earnings is primarily determined by _____

Accepted Answer

In a market economy, earnings are determined by productivity. The more productive an individual is, the greater their earning potential. This is because productivity is directly tied to the value created by an individual in the economy, which in turn determines the value of the goods or services they produce, and therefore their earnings potential.

Question 16

In a market economy,income depends mostly on _____

Accepted Answer

In a market economy, income is determined by the productivity of an individual. The more productive an individual is, the more income they can generate. This is because productivity is directly linked to the value an individual can create in the market, and the market rewards value creation with higher income.

Question 17

In the bottom fifth of the population only about ____ households has anybody working,and only about _____ has anybody working full time.

Accepted Answer

In the bottom fifth of the population, employment rates are significantly lower than in higher income brackets. Approximately one in three households in this segment has someone working, but only about one in seven of these households has someone working full-time. This reflects the challenges faced by the lowest income earners in securing stable, full-time employment.

Question 18

One of the main tools used by economists to measure the actual distribution of income in an economy is _____

Accepted Answer

The Lorenz curve is a graphical representation of the distribution of income in an economy, which plots the cumulative share of income against the cumulative share of the population. It is a commonly used tool by economists to measure income inequality and to determine the degree of concentration of income among different groups in the economy.

Question 19

If income were distributed solely according to marginal productivity,_____

Accepted Answer

If income were distributed solely according to marginal productivity, some individuals who are unable to contribute productively (due to various reasons such as disability, lack of skills, or jobs not requiring their specific skills) would not receive any income. This is because their marginal productivity would be zero or near zero, leading to no income allocation under this system.

Question 20

According to census data,approximately what percent of income in the United States did the second quintile of all households receive in 2015?

Accepted Answer

The second quintile of households, which represents the second 20% group from the bottom in terms of income distribution, typically receives a small portion of the total income. In the United States, income distribution is skewed, with the top quintile (or 20%) receiving a disproportionately large share. The second quintile would receive more than the lowest quintile but significantly less than the highest. 8.2 percent is a realistic figure for the share of total income received by the second quintile, reflecting the uneven distribution of income but indicating a share larger than the very bottom quintile.

Quiz 18: Poverty and Redistribution

In the United States,the dramatic increase in government social spending since the mid-1960s has _____

A Lorenz curve shows the _____

According to census data households in the lowest,or poorest,fifth of the population received only _ of the income in 1980,whereas households in the highest,or richest,fifth received _of the income.

According to census data,approximately what percent of income in the United States did the third quintile of all households receive in 2015?

Which of the following is not true about income quintiles in the United States?

If the marginal productivity of labor was the sole determinant of household income in the United States,then _____

In a market economy,income depends mostly on _____

The share of the bottom fifth of the population in total income in the last two decades has _____

According to census data,approximately what percent of income in the United States did the highest quintile of all households receive in 2015?

Census data on the income distribution among families in the United States from 1980 to 2015 show _____

In the United States,most income comes from _____

According to census data,approximately what percent of income in the United States did the second quintile of all households receive in 2015?

Identify the correct statement about the distribution of income in the United States in the last two decades.

According to census data,approximately what percent of income in the United States did the fourth quintile of all households receive in 2015?

In a market economy,the level of earnings is primarily determined by _____

In a market economy,income depends mostly on _____

In the bottom fifth of the population only about households has anybody working,and only about _ has anybody working full time.

One of the main tools used by economists to measure the actual distribution of income in an economy is _____

If income were distributed solely according to marginal productivity,_____

According to census data,approximately what percent of income in the United States did the second quintile of all households receive in 2015?