Question_Doc13_15Dec_2nd

Question # 00005660 Posted By: smartwriter Updated on: 12/22/2013 01:49 PM Due on: 12/31/2013
Subject Business Topic General Business Tutorials:
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41)Changes in the Lorenz curve since 1929 in the United States indicate that A) the distribution of income today is identical to what it was in 1929.

B) the distribution of income is slightly less equal today than in 1929. C) the distribution of income is slightly more equal today than in 1929.

D) the distribution of income is much more equal today than it was in 1929.

42)All of the following are criticisms of the Lorenz curve EXCEPT

A)The Lorenz curve does not include in-kind transfers.

B)The Lorenz curve does not account for age differences.

C)The Lorenz curve does not account for differences in the sizes of families.

D)The Lorenz curve does not account for differences in education levels.

43) Income in kind is defined as

A)income received in the form of a paycheck.

B)payment for services in the form of cash.

C)tips.

D)income received in the form of goods and services.

44) Income in the form of goods and services is

A)known as money income.

B)known as income in kind.

C)not considered income by economists.

D)not part of wealth.

45)All of the following are income in kind EXCEPT A) government provided housing.

B) government provided education. C) tips received by a waitress.

D) goods produced in the home.

46)All of the following are income in kind EXCEPT A) income received from family members.

B) services produced in the home.

C) government provided food stamps. D) government provided medical aid.

47)Which of the following is not a true statement about the Lorenz curve? A) The Lorenz curve includes both money income and income in kind.

B) The Lorenz curve does not include unreported income obtained from the underground economy.

C) The Lorenz curve does not consider different sizes of households.

D) The Lorenz curve does not consider age differences among wage earners.

48)Compared to the distribution of money income, the distribution of wealth is

A)about the same.

B)much more equal.

C)much less equal.

D)a little more equal.

49)The return on wealth (both human and nonhuman) is A) a stock variable.

B) income.

C) measured in the form of bonds.

D) a stock or flow variable depending upon whether the wealth is in the form of bonds or other financial assets.

50)Which of the following statements is true about income and wealth?

A)Income is a flow measure and wealth is a stock measure.

B)Income is a stock measure and wealth is a flow measure.

C)Both income and wealth are flow measures.

D)Both income and wealth are stock measures.

51)Wealth is measured as A) only tangible objects.

B) only buildings, machinery, land, cars, stocks and bonds. C) only nonhuman wealth.

D) nonhuman and human wealth.

52)When comparing the distribution of wealth to the distribution of income, it can be noted that A) the distributions are about the same.

B) the measurement of income is much less accurate than the measurement of wealth. C) the measurement of wealth is much less accurate than the measurement of income. D) wealth does not generate income.

53)All of the following would show a more equal distribution than the distribution of money income EXCEPT

A) total income.

B) after-tax income. C) wealth.

D) lifetime earnings.

54)The common measure of wealth used in calculating the distribution of wealth includes A) workers' claims on the Social Security system.

B) workers' claims on private pension funds. C) financial assets.

D) human capital.

55)The richest 10 percent of U.S. houses hold more than two-thirds of all wealth. The problem with this statement is that

A) it does not consider an individual's current income. B) it does not consider private and public pension plans. C) it is based entirely on nonhuman wealth.

D) it is based entirely on human wealth.

http://share.pdfonline.com/20426466572d4b2b979acb7c6456033c/chapter30_images/chapter3017x1.jpg

56)Each of the curves plotted in the graph shown in the above figure is known as a A) Laffer curve.

B) Phillips curve. C) Keynesian curve. D) Lorenz curve.

57)In the above figure, the curve that represents the most income inequality is

A)a.

B)b.

C)c.

D)d.

58)In the above figure, the curve that represents the most income equality is A) a.

B) b. C) c. D) d.

59)In the above figure, the curve that represents the second most income equality is A) a.

B) b. C) c. D) d.

60)All of the following are criticisms of the Lorenz curve analysis EXCEPT

A)income-in-kind is not figured in.

B)the inequality gap is not an issue that economists study.

C)different sizes of households are ignored.

D)it does not take into consideration lifetime earnings.

61) Which of the following statements regarding the Lorenz curve is FALSE?

A)A Lorenz curve is a geometric representation of the distribution of income.

B)A Lorenz curve that is perfectly straight represents complete income equality.

C)The less bowed is a Lorenz curve, the less equally income is distributed.

D)The more bowed is a Lorenz curve, the more unequally income is distributed.

.

62) If a nation's Lorenz curve lies on the 45 degree line of income equality, then

A)more of the nation's income is received by the lowest 20 percent of families than by the highest 20 percent.

B)income is unequally distributed.

C)more of the nation's income is received by the highest 20 percent of families than by the lowest percent.

D)the income received by each 20 percent of families is 20 percent of the total income.

63)Income-in-kind is A) money income.

B) received in the form of goods and services. C) income in dollars.

D) used to buy goods and services.

64)Income is considered to be a

A)nontaxable stream of funds.

B)flow.

C)stock.

D)resource.

65) Wealth is considered to be a

A)nontaxable stream of funds.

B)flow.

C)stock.

D)resource.

.

66) The Lorenz curve shows

A)how poverty rates change over time.

B)the percentage of population below the poverty line.

C)the degree of inequality in the income distribution.

D)the ratio of cash income to payments-in-kind.

67)The most widely used measure of income inequality is A) the Bureau of Labor Statistics' cost-of-living index.

B) the Laffer curve. C) the Lorenz curve.

D) the Gemini coefficient.

68)A Lorenz curve measures the ________ on the horizontal axis. A) cumulative percentage of family income

B) cumulative percentage of family wealth C) cumulative percentage of families

D) demand of families on welfare

69)A Lorenz curve measures the ________ on the vertical axis. A) cumulative percentage of money income

B) cumulative percentage of family wealth C) cumulative percentage of families

D) demand of families on welfare

http://share.pdfonline.com/20426466572d4b2b979acb7c6456033c/chapter30_images/chapter3021x1.jpg

70) The Lorenz curve is criticized for all of the following EXCEPT

A)that it excludes transfers-in-kind income.

B)that it does not account for the size differences of households.

C)that it does not account for age differences of households.

D)that it does not account for the impact of trade on the standard of living.

71)Use the above figure. Refer to the above diagram where curves (a) through (d) are for four different countries. Income is equally distributed in

A) Country A. B) Country B. C) Country C. D) Country D.

72)Use the above figure. Refer to the above diagram where curves (a) through (d) are for four different countries. Income is most unequally distributed in

A) Country A. B) Country B. C) Country C. D) Country D.

http://share.pdfonline.com/20426466572d4b2b979acb7c6456033c/chapter30_images/chapter3022x1.jpg

73)Use the above figure. Refer to the above diagram where curves (a) through (d) are for four different countries. Income is third most unequally distributed in

A) Country A. B) Country B. C) Country C. D) Country D.

74)Use the above table. What percentage of income is received by the richest 20% of the population?

A) 33.33 percent B) 16.67 percent C) 11.11 percent D) 40.00 percent

75)Use the above table. What percentage of income is received by the poorest 60% of the population?

A) 27.78 percent B) 33.33 percent C) 44.44 percent D) 55.56 percent

76)Use the above table. What percentage of income is received by the poorest 20% of the population?

A) 20 percent B) 13.3 percent C) 11.1 percent D) 7.0 percent

77)Use the information in the above table. The top 40 percent of the population earn

A)66.7 percent of the income.

B)55.5 percent of the income.

C)50.0 percent of the income.

D)44.4 percent of the income.

78)Use the information in the above table. If Income was evenly distributed, each person would receive

A) $9,000. B) $2,500. C) $1,800. D) $1,000.

79)The distribution of money income can be represented graphically using

A)supply and demand diagrams.

B)a Lorenz curve.

C)a Keynesian curve.

D)a Distribution curve.

.

80) A diagonal straight line on a Lorenz curve represents

A)a perfectly unequal distribution of income (one person has everything).

B)a perfectly equal distribution of income.

C)a high level of inequality in the distribution of income.

D)an oblique distribution of income.

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  1. Tutorial # 00005454 Posted By: smartwriter Posted on: 12/22/2013 01:50 PM
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    of families on welfare Answer: C 69)A Lorenz curve measures ...
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