MCQs of Economics – Income Inequality

Because in-kind transfers are not accounted for in standard measures of income distribution the standard measures of income distribution

Permanent income is

A period of unemployment due to recession will:

Because people’s income vary other the life cycle and because there are transitory shocks to people’s incomes the standard measures of income distribution

If people can borrow and lend to perfectly smooth out their lifetime living standards then

Mariam earns more than Seamus and she came by her income fairly and honestly which of the following political philosophies would argue against the redistribution of income from Mariam to Seamus?

The maximin criterion suggested by Rawls’s theory of justice means that the government should aim to:

Rank utilitarianism liberalism, and libertarianism in sequence from the political philosophy that would redistribute income the greatest to the one that would redistribute income the least.

Utilitarianism suggests that the government should choose policies that maximize the total utility of everyone in society by

Rawls’s suggestion that policy should be directed at maximizing the welfare of the least well off person in society is derived from

Rawls’s miximin criterion does not mean that there should be redistribution so as to equalise everyone’s incomes in society because

An increase in the minimum wage will cause a relatively large increase in unemployment among

Current anti-poverty programs discourage work because

The greatest advantage of a negative income tax is that it

The poverty trap refers to

Constrained choice is relevant for households:

The idea that the demand for car workers stems from the demand for cars is:

Assuming leisure is a normal good, if the income effect is greater than the substitution effect a wage increase:

The substitution effect of higher wages suggests that as the wage rate increases:

Assuming that leisure is a normal good. if an individual’s labour supply curve is backward bending then the:

If the income effect is smaller than the substitution effect, higher net wages will:

As the wage rate per hour increases, the opportunity cost of leisure

Differences in wages that result from differences in working conditions are known as:

New technology in the form of computer spreadsheets has increased the productivity of accountants. This will cause

The marginal product of variable input is best described as:

In a competitive labour market firms will hire labour up to the point where the marginal revenue product of labour equals:

The marginal revenue product of labour is:

The formula for the marginal revenue product of labour (L is for labour, X is the product) is:

If output price is constant, the marginal revenue product of labour curve will have the same shape as the:

An unemployed salesperson has been offered a job paying Rs500 a week. He turns that job down and continues to search for another job that pays more. The cost of this continued search is

Unemployment benefits may increase the unemployment rate because unemployment benefits.

If labour market discrimination crowds women into a limited number of occupations so that the number of occupations available to men increases, then:

The stock of knowledge, skills and talents that people possess is called:

The term ‘rent’ as it is used by economists. refers to

Supply of land in a given use:

If income were distributed equally the lorenz curve would be:

The Gini coefficient is:

A Gini coefficient of zero means that the:

A Gini coefficient of one means that:

The measure or value upon which a tax is levied is the:

Horizontal equity holds that:

Vertical equity holds that

The total amount of tax you pay divided by your total income is the:

The marginal tax rate is:

A tax whose burden is the same proportion of income for all households is:

A progressive income tax means that those with a higher income pay

A tax whose burden expressed as a percentage of income, falls as income increases is a:

Tax incidence is the:

Tax shifting:

Where a tax can be shifted the incidence depends on:

An example of an indirect tax is:

VAT is a good example of which kind of tax?

Housing Benefit is a good example of:

The Benazir Benefit income Scheme is a good example of:

In Pakistan the term the poverty trap is used to describe the fact that: