Question_Doc13_15Dec_5th

Question_Doc13_15Dec_5th

Question

1)The productivity standard for the
distribution of income can be thought of as A) rewarding people according to
their ability to produce useful goods.

B) benefiting only the least
productive worker. C) proving that egalitarians are correct.

D) rewarding only the wealthy.

2)One productivity standard for
income distribution stated in the text is

A)income distribution should be
based on contribution to society’s total output.

B)tax payments are higher for higher
income people.

C)poor people pay too much in taxes.

D)the poor should contribute more to
society.

3)The contributive standard (merit
standard) for distributing income implies that A) income should be distributed
equally.

B) income should be distributed
according to need.

C) income should be distributed
according to the marginal productivity of workers.

D) a transfer should be contributed
to an individual above his or her contribution to net output.

4)The contributive standard of
income distribution is met by

A)setting wages according to
marginal productivity.

B)having a highly progressive income
tax.

C)having the government determine
all wages.

D)using local committees to
determine the needs of families in the area.

5)The egalitarian principle of
income refers to A) each person being paid differently.

B) each person receiving the same
income. C) each person receiving tax breaks.

D) each person working the same
number of hours.

6)”To each exactly the
same” refers to

A)the productivity standard.

B)the free market doctrine.

C)the egalitarian principle.

D)the Lorenz curve.

7)A major problem with using the
egalitarian principle to distribute income is that A) it would eliminate the
incentives that rewards provide in an economic system. B) it is difficult to
know when an equal distribution of income has been achieved. C) it would not be
fair to the wealthy.

D) there exist no mechanisms to
carry out such a scheme.

8)If income were distributed
according to the egalitarian principle of “to each exactly the same,”
then one problem would be that

A) there would be little or no
incentive for individuals to take risky, hazardous, or unpleasant jobs.

B) individuals would have an excess
desire to invest in their own human capital. C) too many individuals would want
to take risky jobs.

D) productivity levels would
probably become too high.

9)The productivity standard says

A)that everyone should have exactly
the same income.

B)that
the age-earnings cycle should determine income.

C)that people should be compensated
on the basis of what they produce.

D)that people should be compensated
on the basis of their need.

10) The egalitarian principle refers
to:

A)”To each according to her
need.

B)”To each exactly the
same.

C)”To each according to her
productivity.

D)”To each according to his
ability.

11)The merit standard refers to: A)
“To each according to her need.” B) “To each exactly the
same.

C) “To each according to her
productivity.” D) “To each according to his ability.

12)The egalitarian principle says

A)that everyone should have exactly
the same income.

B)that
the age-earnings cycle should determine income.

C)that people should be compensated
on the basis of what they produce.

D)that people should be compensated
on the basis of their need.

13)The belief that everyone should
have exactly the same amount of income is A) merit standard.

B) comparable-worth doctrine.
C) egalitarian principle.

D) Lorenz principle.

14)If we were to pay everyone
exactly the same income

A)there would be a large amount of
economic growth.

B)there would be no incentive to
invest in human capital.

C)more people would seek an
education.

D)productivity would increase.

15)Which of the following is
considered a contributive standard for the distribution of income? A) rewarding
workers according to their productivity

B) rewarding workers according to
their needs

C) rewarding workers according to
the number of their dependents D) all of the above

16)If an employer pays employees
according to the volume of business revenue they individually generate, then
the employer is applying the

A) productivity standard. B) merit
standard.

C) contributive standard. D) all of
the above

17)Merit is judged by one’s ability
to produce

A)what is considered useful by
society.

B)what is considered valuable by
society.

C)what is considered beneficial to
society.

D)all of the above

18) We measure a person’s productive
contribution in a market system by

A)the marginal factor cost theory of
the firm.

B)the profit maximization theory of
the firm.

C)the marginal revenue product
theory of wage determination.

D)the egalitarian theory of wage
determination.

19)Which of the distributive
standards does NOT involve a value judgment? A) Productivity standard

B) Egalitarian standard C) Merit
standard

D) All of the standards involve
value judgments.

20)Which of the following is NOT a
normative standard for income distribution? A) the productivity standard

B) the egalitarian principle

C) rewarding people according to
merit

D) All of the above are normative
standards.

21)If you believe that a worker
should be paid on the basis of what he or she produced, you believe in

A) the egalitarian principle. B) the
productivity standard. C) the benefits standard.

D) the comparative worth principle.

22)If you believe that all workers
should be paid the same, you believe in the

A)egalitarian principle.

B)productivity standard.

C)benefits standard.

D)comparative worth principle.

23)The idea that the Lorenz curve
should be along the 45 degree line is consistent with A) the productivity
standard.

B) the egalitarian principle. C) the
conservative principle. D) none of the above.

24)Which of the following is NOT
correct regarding the theories of income distribution? A) Dealing with how
income ought to be distributed is a normative issue.

B) The productivity standard for the
distribution of income is stated “to each according to what they
produce.

C) The egalitarian principle of
income distribution is “to each exactly the same.” D) Dealing with
how income should be distributed is a positive economic issue.

25)”To each according to what
he or she produces” describes the ________ theory of income determination.

A) productivity B) egalitarian C)
equity

D) needs

26)A person’s productive
contribution in a capitalist society is measured by determining the A) market
value of the individual’s output.

B) comparable output of other
workers in similar jobs. C) total number of goods produced by the individual.
D) index of occupational values.

27)Explain the two theories of
desired income distribution: the egalitarian principle and the productivity
standard.

28)Compare and contrast the two
normative standards to income distribution discussed in the text: The
productivity standard and the egalitarian principle.

30.4 Poverty and Attempts to
Eliminate It

1)The lowest percentage of the U.S.
population in poverty is found when using which measurement of household
resources?

A) Private income only

B) Private income plus cash benefits

C) Private income with cash
and in-kind benefits

D) Private income with Social
Security payments subtracted

2)The Social Security system is
financed by

A)a tax on individual retirement
accounts.

B)a payroll tax paid only by
employers.

C)a payroll tax paid by both employers
and employees.

D)a tax on luxury goods.

3)The Social Security system is a(n)
A) ad valorem system.

B) ability to pay system. C)
progressive tax system. D)pay-as-you-go system.

4)The government finances Social
Security through A) excise taxes.

B) payroll taxes.

C) the sale of goods and services.
D) state taxes.

5)Which of the following statements
is correct?

A)The Social Security program
funnels transfers from retired individuals to the youngest children
of low-income families.

B)Social Security is an entitlement
which is available to everyone, including those who have not contributed to the
fund during their active work years.

C)Social Security benefits are
received by people who had contributed to the fund during their active work
years.

D)As a public transfer payment,
Social Security benefit is available only to the poor.

6) The Social Security Fund is
designed as

A)a pay-as-you-go system.

B)an investment portfolio that
individual contributors can make periodic payments into.

C)an account that allows periodic
withdrawals by contributors.

D)an individual account with a
federal reserve bank.

7)Social Security is a pure transfer
program because A) it transfers funds from current workers to the poor.

B) the government transfers funds
from middle-income workers to welfare recipients. C) current payroll
taxes are used to pay the eligible retirees.

D) the government subsidizes the
medical bill of the poor.

8)Since Social Security is
a pay-as-you-go program, the funds for the people retiring today A) come
from those of us working today and in the future.

B) come from the Federal Reserve. C)
come from import taxes.

D) come from foreign sales of gold.

9)The original impetus for Social
Security was

A)to provide retirement fund for all
persons.

B)to prevent future depressions.

C)the result of social engineering
by politicians.

D)a proper response to the stock
market crash of 1929.

10) The official poverty level is
based on

A)total net worth.

B)pretax income, and includes cash
subsidies but does not include in-kind subsidies such as food stamps.

C)after-tax income, and
includes both cash and in-kind government subsidies.

D)wages and salaries, plus any unreported amounts of income
from the underground economy.

Question_Doc13_15Dec_5th


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Preview: B11)The xxxxx standard xxxxxx to: A) xxx each according xx her xxxx x B) xxx each exactly xxx same “C) xxx each xxxxxxxxx xx her xxxxxxxxxxxx ” D) xxx each according xx his xxxxxxx x Answer: xxxxxxx egalitarian principle xxxxxxxxxx everyone should xxxx exactly xxx xxxx income xxxxxx the age-earnings cycle should xxxxxxxxx income C)that xxxxxx should xx xxxxxxxxxxx on xxx basis of xxxx they produce xxxxxx people xxxxxx xx compensated xx the basis xx their need xxxxxxx A13)The xxxxxx xxxx everyone xxxxxx have exactly xxx same amount xx income xx xx merit xxxxxxxx B) comparable-worth doctrine C) xxxxxxxxxxx principle D) xxxxxx principle xxxxxxx xxxxxx we xxxx to pay xxxxxxxx exactly the xxxx incomeA)there xxxxx xx a xxxxx amount of xxxxxxxx growth B)there xxxxx be xx xxxxxxxxx to xxxxxx in human xxxxxxx C)more people xxxxx seek xx xxxxxxxxx D)productivity xxxxx increase Answer: xxxxxxxxx of the xxxxxxxxx is xxxxxxxxxx x contributive xxxxxxxx for the xxxxxxxxxxxx of income? xx rewarding xxxxxxx xxxxxxxxx to xxxxx productivityB) rewarding xxxxxxx according to xxxxx needsC) xxxxxxxxx xxxxxxx according xx the number xx their dependents xx all xx xxx aboveAnswer: x 16)If an xxxxxxxx pays employees xxxxxxxxx to xxx xxxxxx of xxxxxxxx revenue they xxxxxxxxxxxx generate, then xxx employer xx xxxxxxxx theA) xxxxxxxxxxxx standard B) xxxxx standard C) xxxxxxxxxxxx standard xx xxx of xxx above Answer: xxxxxxxxx is judged xx one’s xxxxxxx xx produceA)what xx considered useful xx society B)what xx considered xxxxxxxx xx society xxxxxx is considered xxxxxxxxxx to society xxxxx of xxx xxxxxxxxxxxx D18) xx measure a xxxxxxxx productive contribution xx a xxxxxx xxxxxx byA)the xxxxxxxx factor cost xxxxxx of the xxxx B)the xxxxxx xxxxxxxxxxxx theory xx the firm xxxxx marginal revenue xxxxxxx theory xx xxxx determination xxxxx egalitarian theory xx wage determination xxxxxxx C19)Which xx xxx distributive xxxxxxxxx does NOT xxxxxxx a value xxxxxxxxx A) xxxxxxxxxxxx xxxxxxxxxx Egalitarian xxxxxxxx C) Merit xxxxxxxxxx All of xxx standards xxxxxxx xxxxx judgments xxxxxxx D20)Which of xxx following is xxx a xxxxxxxxx xxxxxxxx for xxxxxx distribution?