The Lorenz curve is a way of illustrating the distribution of income.
a. True
b. False
QUESTION 2A stock market crash that reduces the value of an individual's trust fund would tend to
a. increase her supply of labor if the substitution effect outweighs the income effect
b. decrease her supply of labor if the substitution effect outweighs the income effect
c. have no impact on her labor supply decision
d. increase her supply of labor
e. decrease her supply of labor
QUESTION 3One effect of the work requirements of welfare reform has been
a. to make the demand curve for welfare upward sloping
b. to lower the price of welfare to recipients
c. to make the supply curve of welfare upward sloping
d. to reduce the amount of hassle involved with going on welfare
e. to raise the price of welfare to the recipients
QUESTION 4Which of the following could not contribute to differences in wage rates across markets?
a. differences in training and education requirements
b. job discrimination
c. differences in risk
d. problems of labor mobility
e. distribution of a new national help-wanted newspaper
QUESTION 5As welfare rolls declined during the late 1990s and early 2000s,
a. states with aggressive work requirements found that their federal grants also declined
b. states with aggressive work requirements were rewarded with larger federal grants
c. few welfare recipients were able to find jobs
d. there was a significant increase in welfare spending per recipient
e. states cut back on their provision of services such as job placement and child care
QUESTION 6Which of the following could explain a decrease in the demand for labor in a particular job?
a. additional training that increases the productivity of each unit of labor in this market
b. an increase in the amount of risk associated with this job
c. a decrease in the amount of risk associated with this job
d. an improvement in the working conditions associated with this job
e. a decrease in the productivity of each unit of labor in this market
QUESTION 7On average throughout the United States,
a. almost all individuals leaving welfare had jobs
b. day-care shortages arose as individuals left welfare for work
c. only about half the individuals leaving welfare had jobs
d. former welfare recipients who are now working find that they no longer qualify for food stamps, child care, or Medicaid
e. welfare rolls remained stable during the late 1990s and early twenty-first century.
QUESTION 8Which of the following could explain an increase in the equilibrium wage rate for a particular job?
a. a decrease in the amount of training needed to perform this job
b. an increase in the amount of risk associated with this job
c. a decrease in the amount of risk associated with this job
d. an improvement in the working conditions associated with this job
e. increased migration of workers to this geographic location
QUESTION 9Most people on welfare
a. are not U.S. citizens
b. are poorly educated and have few job skills
c. do not qualify for food stamps, child care, or Medicaid
d. have jobs
e. are below the age of 16
Quick Reply
