ECON 2302 Week 5 Quiz 10

ECON 2302 Week 5 Quiz 10 | Assignment Help | Central Texas College

•             Question 1

                If the government decided that each family needs a minimum income of $25,000 and promised to make up the difference between whatever a family earned and $25,000, which of the following is correct?                                   

Answers:             a.

The government is effectively taxing every dollar earned up to $25,000 at a rate of 100%.

                b.

This program would reduce the incentive to work to earn any wage up to $25,000.

                c.

If workers are discouraged from working due to this program, they will miss any on-the-job training that would have otherwise occurred, limiting their ability to improve their skills.

                 d.

All of the above are correct.

•             Question 2

                Liberalism is founded on a premise that behind a "veil of ignorance,"                                     

Answers:             a.

everyone’s income should be equal.

                b.

society should maximize the sum of individual utilities.

                c.

justice cannot be agreed upon.

                 d.

everyone would agree to "just" rules to reallocate income.

•             Question 3

                “Equality of opportunities is more important than equality of incomes.” This statement would be most likely attributed to which political philosophy?                                              

Answers:             a.

welfarism

                 b.

libertarianism

                c.

liberalism

                d.

utilitarianism

•             Question 4

                Scenario 20-6

Zooey is a single mother of two young children whose husband died in a tragic car accident. She earns $20,000 per year working as a cashier at a grocery store. The government uses a negative income tax system in which

Taxes owed = (1/4 of income) - $15,000.

Refer to Scenario 20-6. How much does Zooey owe or receive from the government?                                   

Answers:             a.

She receives $10,000.

                b.

She owes $10,000.

                c.

She owes $5,000

                d.

She receives $15,000.

•             Question 5

                "An extra dollar of income gives more additional satisfaction to a poor person than to a rich person." This is an important assumption of which political philosophy?                                      

Answers:             a.

republicanism

                b.

liberalism

                 c.

utilitarianism

                d.

libertarianism

•             Question 6

                The invisible hand of the marketplace acts to allocate resources                                               

Answers:             a.

efficiently but does not necessarily ensure that resources are allocated fairly.

                b.

fairly but does not necessarily ensure that resources are allocated efficiently.

                c.

neither fairly nor efficiently.

                d.

both fairly and efficiently.

•             Question 7

                “The government should choose policies deemed to be just, as evaluated by an impartial observer behind a ‘veil of ignorance.’” This statement is most closely associated with which political philosophy?                                  

Answers:             a.

utilitarianism

                 b.

liberalism

                c.

welfarism

                d.

libertarianism

•             Question 8

                A disadvantage associated with an Earned Income Tax Credit (EITC) program to reduce poverty is that it                                               

Answers:             a.

encourages illegitimate births because single women with children receive higher payments.

                 b.

does not help the poor who are unemployed.

                c.

rewards laziness because it provides payments to those with low incomes regardless of their work effort.

                d.

creates unemployment by increasing the wage paid to unskilled workers above the equilibrium wage.

•             Question 9

                An example of a transitory change in income is the                                         

Answers:             a.

annual cost of living adjustment to your salary.

                b.

increase in income that results from a job promotion linked to your education.

                 c.

increase in income of California orange growers that results from an orange-killing frost in Florida.

                d.

All of the above are correct.

•             Question 10

                Economic mobility in the United States is                                             

Answers:             a.

uncommon. Over 50 percent of poor families remain poor for 8 or more years.

                b.

common. Fewer than 1 percent of poor families remain poor for 8 or more years.

                 c.

common. Fewer than 3 percent of poor families remain poor for 8 or more years.

                d.

uncommon. Over 75 percent of poor families remain poor for 8 or more years.