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2. Economic Inequality 20 CLICKER QUESTIONS

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4. © 2013 Pearson CHECKPOINT 20.1 A.20 B.100 C.80 D.40 E.60 Question 1 In the figure, the richest 20 percent of households receive ____ percent of total income.

5. © 2013 Pearson CHECKPOINT 20.1 A.income is equally distributed B.wealth is equally distributed C.income is equally distributed, but wealth is unequally distributed because of inheritances D.both wealth and income are unequally distributed E.both wealth and income are equally distributed Question 2 In the United States, ______.

6. © 2013 Pearson CHECKPOINT 20.1 A.overstates the degree of lifetime inequality B.understates the degree of lifetime inequality C.cannot change from one year to the next D.is about the same as the amount of lifetime inequality E.cannot be compared to the amount of lifetime inequality Question 3 The inequality of annual market income ________.

7. © 2013 Pearson CHECKPOINT 20.2 A.equilibrium wage differential B.cost of acquiring a skill C.value of marginal product of skill D.willingness of high-skilled workers to take a job E.value that high-skilled workers place on leisure Question 4 At any given employment level, the gap between the wage rates that firms are willing to pay low-skilled and high-skilled workers measures the ______.

8. © 2013 Pearson CHECKPOINT 20.2 A.lowers the value of marginal product of high-skilled labor B.increases the willingness of firms to hire high-skilled labor C.decreases the supply of high-skilled labor D.raises the equilibrium wage rate paid to low-skilled labor E.lowers the equilibrium wage differential between high- skilled and low-skilled labor Question 5 An increase in the cost of acquiring a skill _______.

9. © 2013 Pearson CHECKPOINT 20.2 A.$14 an hour; $10 an hour B.$16 an hour; $14 an hour C.$14 an hour; $10 an hour D.$16 an hour; 10 an hour E.$16 an hour; $8 an hour Question 6 The figure shows supply and demand curves for high-skilled and low-skilled labor. The wage rate paid high-skilled workers is ____, and the wage rate paid low-skilled workers is ____.

10. © 2013 Pearson CHECKPOINT 20.2 A.arise from education and on-the-job training B.lead to difference in the value of marginal product of labor C.lead to a greater supply of high-skilled workers than low- skilled workers D.Options A and B are correct. E.Options A, B, and C are correct. Question 7 Differences in skills ________.

11. © 2013 Pearson CHECKPOINT 20.3 A.progressive income B.proportional income C.regressive income D.flat-rate income E.sales Question 8 Using taxes as a redistribution method, a ________ tax provides the greatest amount of redistribution from people who earn high incomes to people who earn low incomes.

12. © 2013 Pearson CHECKPOINT 20.3 A.Social Security programs, unemployment compensation, and welfare programs B.food stamps, unemployment compensation, and agricultural price supports C.student loans, rent control, and welfare programs D.corporate bailouts, minimum wages, and affirmative action laws E.minimum wages, food stamps, and student loans Question 9 The three major types of income maintenance programs are ______.

13. © 2013 Pearson CHECKPOINT 20.3 A.$16,000 B.$22,000 C.$26,000 D.$24,000 E.$10,000 Question 10 With a negative income tax scheme that has a $10,000 guaranteed minimum income and a 25 percent tax rate, a household that has earned income of $16,000 has a total income of _______.