A. The return to any factor of production that is in fixed supply
B. The profit earned by the owner of any housing unit.
C. The amount paid each year by a tenant for an apartment
D. Any profit earned by stockholders when they sell their stock
A. The ratio of the percentage of total income received by the top 20% of families to the percentage of total income received by by the bottom 20% of families
B. The most common way of representing the income distribution graphically
C. A commonly used measure of the degree of inequality in an income distribution
D. A commonly used measure of the degree of inequity in an income distribution
A. All the income is received by the top 20% of the income distribution
B. Income is distributed equally
C. The income is split equally between the top 20% and the rest of the distribution.
D. One family has all the income and every one else has nothing.
A. Benefits are reduced at such a high rate when recipients earn more income that there is little or no incentive to work once one is receiving benefits.
B. In order to be eligible for benefits a recipient cannot have a job
C. They make recipients more comfortable than most middle-class citizens.
D. Anti-poverty programs attract naturally lazy people to begin with.
A. A situation in which those receiving state benefits may be almost no better off if they choose to work more to earn more income for themselves and their families because doing so will mean they have to pay back the benefits they have previously receive
B. A situation in which workers are unable to find jobs.
C. A situation in which those receiving state benefits may be almost no better off if they choose to work more to earn more because doing so will reduce the amount of benefit income to which they are entitled and increase the amount to tax
D. A situation in which those receiving state benefits are discriminated against by employers and so find it more difficult to find jobs.
A. Output demand
B. Indirect demand
C. Derived demand
D. The value of the marginal product of auto workers.
A. Transitory income is a good measure of the distribution of living standards
B. None of these answers
C. Permanent income is a good measure of the distribution of living standards.
D. Life-cycle income is a good measure of the distribution of living standards.
A. Maximize the total utility of society
B. Maximize the well-being of the worst-off person in society
C. Minimize the difference between the rich and poor
D. Maximize the economic freedom of individuals by minimizing government interference in private decision making
A. Redistributing income from rich to poor because this is what the members of society would choose to do if they were behind a veil of ignorance
B. Redistributing income from rich to poor because due to the diminishing marginal utility of income, taking a pound from the rich reduces their utility by less than the gain in utility generated by giving a pound to the poor
C. Allowing each individual to maximize their own utility without interference from the government
RedIstributing income from rich to poor because this would maximize the well-being of the worst-off person in society
A. Such redistribution would mean that those who worked hard were no better off than those who were lazy and this would be unfair.
B. Such redistribution would not maximize the total income of all members of society
C. Such redistribution would remove the incentive to work hard, so society’s total income would fall, and so the least well off person would be worse off than they could be under a system in which there was some inequality income.
D. Such redistribution would amount to confiscation of honestly earned income from higher earners and so would be unjust.