财政学英文测试题：TBChap012

1、Chapter 12Income Redistribution: Conceptual Issues Multiple Choice Questions 1.An in-kind transfer is a  A. transfer made by people to be kind to others.B. transfer of wealth.C. transfer of goods and services instead of cash.D. system of clearing checks by loc

2、al banks. 2.For the additive social welfare function to yield results, we must assume  A. individuals have identical utility functions.B. individuals' utility functions have diminishing marginal utility of income.C. the total amount of income available is fixed.D.&#

3、160;all of these answer options are correct. 3.The poverty rate in the United States has _ over the last 30 years.  A. remained the sameB. increasedC. decreasedD. not been accurately measured 4.Generally, official poverty measures ignore  A. the

4、 impact of taxes.B. the value of in-kind transfers.C. the value of medical expenses that are paid by the government.D. all of these answer options are correct. 5.The group comprising the highest percentage of the poor is  A. the disabled.B. elderly.C. mal

5、e heads of households.D. children. 6.The United States' official measure of poverty is measured by  A. only cash income.B. cash income and capital gains.C. only in-kind income.D. the imputed value of rent payments. 7.Taking into account the utility of

6、 all persons in society is referred to as  A. an utilitarian social welfare function.B. equalizing social welfare function.C. an in-kind transfer.D. a Pareto equilibrium. 8.A notion that supports the idea that some items should be distributed equally to all is know

7、n as  A. Pareto efficiency.B. the Hoover Principle.C. poverty gap closing.D. commodity egalitarianism. 9.The middle class in the United States has _ since the late 1960s.  A. stayed the sameB. decreasedC. increased a great deal but then dec

8、linedD. increased slightly 10.The _ of whites in poverty in the U.S. is greater than that of blacks and Hispanics.  A. percentageB. total numberC. fractionD. none of these answer options are correct. 11.In a public goods context, it is difficult to measur

9、e its impact on real income because  A. public goods are generally free to the public.B. they make up a small percentage of total GDP.C. people do not reveal how they value public goods.D. inflation decreases the value of the good. 12.The poverty line in the United

10、 States  A. last changed in 1980.B. never changes.C. changes with the level of inflation and family size.D. changes with the minimum wage. 13.Maximizing the utility of the person with the minimum utility is known as  A. the minimax criterion.B. 

11、the maximin criterion.C. the Hicks-Kaldor criterion.D. the Corlett-Hague Rule. 14.An additive social welfare function would  A. add the incomes of the lowest ten percent of income earners.B. subtract out the utility functions of all people who are unemployed.C.

12、0;sum all individual utilities.D. maximize the utility of the person with the minimum utility. 15.Changing the price of good Y will  A. only affect the demand for that good.B. have effects across some markets.C. keep prices down in all markets.D. have no effec

13、t. 16.Giving poor people food instead of cash for food  A. is an in-kind transfer.B. will benefit some more than others, depending on their utility function.C. is politically popular.D. all of these answer options are correct. 17.An imaginary situation in whic

14、h people have no knowledge of what their place in society is to be is?  A. first positionB. start positionC. original positionD. pole position 18.Giving in-kind transfers will ensure that people get proper amounts of nutrition.  A. TrueB. FalseC

15、. Uncertain 19.Ignoring taxes when making redistributive decisions has no impact on equity.  A. TrueB. FalseC. Uncertain 20.A redistribution is Pareto efficient if no one is made worse off afterward.  A. TrueB. FalseC. Uncertain 2

16、1.Social welfare functions require that a society has at least three people living in it.  A. TrueB. FalseC. Uncertain 22.Income is the only factor used to measure a person's wealth.  A. TrueB. FalseC. Uncertain 23.Ethics play a key rol

17、e in income redistribution.  A. TrueB. FalseC. Uncertain 24.Poverty is relative and not absolute.  A. TrueB. FalseC. Uncertain 25.Refer to the table below. Relative to their starting position, people in the fourth-fifth of the income distri

18、bution have seen the greatest decrease in their share of income.    A. TrueB. FalseC. Uncertain 26.The poverty rate in the United States has decreased by more than 50% over the last 40 years.  A. TrueB. FalseC. Uncertain 27.Measur

19、es of income before intervention are calculated on an annual rather than a lifetime basis.  A. TrueB. FalseC. Uncertain  Essay Questions 28.Suppose there are only two people, Mr. Mullinax and Ms. Fleming, who must split a fixed income of $500. For Mr. Mullinax

20、, the marginal utility of income is MUm = 600 - 2Im, while for Ms. Fleming, marginal utility is MUf = 600 - 3If, where Im and If are the amounts of income to Mr. Mullinax and Ms. Fleming, respectively.(A) What is the optimal distribution of income if the social welfare function is additive?(B) What

21、is the optimal distribution if society values only the utility of Ms. Fleming? What if the reverse is true? Comment on your answer.(C) Finally, comment on how your answers change if the marginal utility of income for both Mr. Mullinax and Ms. Fleming is constant such that Mum = 250 = MUf. (This one

22、is subtle.)      29.Suppose that in a certain society $10,000 is the official cut-off of income for the poor. This means that any person making less than $10,000 is considered poor. Suppose further that there are three people in this society: Randy, Marlon, and Tito, wi

23、th incomes of $9,900, $9,900, and $5,000, respectively.A) How many people are in poverty?B) How much income would it take, on average, to lift every poor person out of poverty?C) What if some policy caused $200 to be taken from Tito and given to Randy. How many people are in poverty now? How much in

24、come would it take, on average, to lift every poor person out of poverty?      30.Suppose Lefty has utility characterized by the equation: Ul = 3I1/2, where I is income. In addition, Righty has utility characterized by the equation: Ur = 4I1/2, where I is income.(A) If

25、each had $100,000, which one would have the higher level of utility?(B) Illustrate Lefty's and Right's utility functions.(C) What equal amount of income could we give to both that would also give them the same level of utility?      31.How would poverty be affec

26、ted in the United States if the measure were changed to a more comprehensive one that included the value of in-kind transfers, medical services, and taxes?      32.State whether you agree with the following statement and why: "It doesn't make sense to give poor

27、 people cash since they'll spend it on cigarettes and lottery tickets instead of needed items."      33.How would you feel about a policy that would raise someone else's income without lowering yours? Are you any worse off?     

28、0;34.If the least wealthy person in a society has millions of dollars, should we still consider that person poor?      Chapter 12 Income Redistribution: Conceptual Issues Answer Key Multiple Choice Questions 1.An in-kind transfer is a  A. transf

29、er made by people to be kind to others.B. transfer of wealth.C. transfer of goods and services instead of cash.D. system of clearing checks by local banks. AACSB: Reflective ThinkingAccessibility: Keyboard NavigationBlooms: RememberDifficulty: 1 EasyTopic: Distribution of Income&

30、#160;2.For the additive social welfare function to yield results, we must assume  A. individuals have identical utility functions.B. individuals' utility functions have diminishing marginal utility of income.C. the total amount of income available is fixed.D. all of

31、 these answer options are correct. AACSB: Reflective ThinkingAccessibility: Keyboard NavigationBlooms: RememberDifficulty: 1 EasyTopic: Rationales for Income Redistribution 3.The poverty rate in the United States has _ over the last 30 years.  A. remained the sameB. inc

32、reasedC. decreasedD. not been accurately measured AACSB: Reflective ThinkingAccessibility: Keyboard NavigationBlooms: RememberDifficulty: 1 EasyTopic: Distribution of Income 4.Generally, official poverty measures ignore  A. the impact of taxes.B. the value of

33、in-kind transfers.C. the value of medical expenses that are paid by the government.D. all of these answer options are correct. AACSB: Reflective ThinkingAccessibility: Keyboard NavigationBlooms: UnderstandDifficulty: 2 MediumTopic: Distribution of Income 5.The group comprising th

34、e highest percentage of the poor is  A. the disabled.B. elderly.C. male heads of households.D. children. AACSB: Reflective ThinkingAccessibility: Keyboard NavigationBlooms: RememberDifficulty: 1 EasyTopic: Distribution of Income 6.The United States' offici

35、al measure of poverty is measured by  A. only cash income.B. cash income and capital gains.C. only in-kind income.D. the imputed value of rent payments. AACSB: Reflective ThinkingAccessibility: Keyboard NavigationBlooms: RememberDifficulty: 1 EasyTopic: Distributio

36、n of Income 7.Taking into account the utility of all persons in society is referred to as  A. an utilitarian social welfare function.B. equalizing social welfare function.C. an in-kind transfer.D. a Pareto equilibrium. AACSB: Reflective ThinkingAccessibility:

37、Keyboard NavigationBlooms: RememberDifficulty: 1 EasyTopic: Rationales for Income Redistribution 8.A notion that supports the idea that some items should be distributed equally to all is known as  A. Pareto efficiency.B. the Hoover Principle.C. poverty gap closing.D.

38、60;commodity egalitarianism. AACSB: Reflective ThinkingAccessibility: Keyboard NavigationBlooms: RememberDifficulty: 1 EasyTopic: Rationales for Income Redistribution 9.The middle class in the United States has _ since the late 1960s.  A. stayed the sameB. decreasedC.&#

39、160;increased a great deal but then declinedD. increased slightly AACSB: Reflective ThinkingAccessibility: Keyboard NavigationBlooms: RememberDifficulty: 1 EasyTopic: Distribution of Income 10.The _ of whites in poverty in the U.S. is greater than that of blacks and Hispanics. &#

40、160;A. percentageB. total numberC. fractionD. none of these answer options are correct. AACSB: Reflective ThinkingAccessibility: Keyboard NavigationBlooms: RememberDifficulty: 1 EasyTopic: Distribution of Income 11.In a public goods context, it is difficult to measure i

41、ts impact on real income because  A. public goods are generally free to the public.B. they make up a small percentage of total GDP.C. people do not reveal how they value public goods.D. inflation decreases the value of the good. AACSB: Reflective ThinkingAccessibil

42、ity: Keyboard NavigationBlooms: UnderstandDifficulty: 2 MediumTopic: Expenditure Incidence 12.The poverty line in the United States  A. last changed in 1980.B. never changes.C. changes with the level of inflation and family size.D. changes with the minimum wage.

43、60;AACSB: Reflective ThinkingAccessibility: Keyboard NavigationBlooms: RememberDifficulty: 1 EasyTopic: Distribution of Income 13.Maximizing the utility of the person with the minimum utility is known as  A. the minimax criterion.B. the maximin criterion.C. the Hicks-Ka

44、ldor criterion.D. the Corlett-Hague Rule. AACSB: Reflective ThinkingAccessibility: Keyboard NavigationBlooms: RememberDifficulty: 1 EasyTopic: Rationales for Income Redistribution 14.An additive social welfare function would  A. add the incomes of the lowest ten percent

45、 of income earners.B. subtract out the utility functions of all people who are unemployed.C. sum all individual utilities.D. maximize the utility of the person with the minimum utility. AACSB: Reflective ThinkingAccessibility: Keyboard NavigationBlooms: UnderstandDifficulty: 2 Me

46、diumTopic: Rationales for Income Redistribution 15.Changing the price of good Y will  A. only affect the demand for that good.B. have effects across some markets.C. keep prices down in all markets.D. have no effect. AACSB: Reflective ThinkingAccessibility: Key

47、board NavigationBlooms: UnderstandDifficulty: 1 EasyTopic: Expenditure Incidence 16.Giving poor people food instead of cash for food  A. is an in-kind transfer.B. will benefit some more than others, depending on their utility function.C. is politically popular.D. a

48、ll of these answer options are correct. AACSB: Reflective ThinkingAccessibility: Keyboard NavigationBlooms: UnderstandDifficulty: 2 MediumTopic: Expenditure Incidence 17.An imaginary situation in which people have no knowledge of what their place in society is to be is?  A. 

49、first positionB. start positionC. original positionD. pole position AACSB: Reflective ThinkingAccessibility: Keyboard NavigationBlooms: RememberDifficulty: 1 EasyTopic: Rationales for Income Redistribution 18.Giving in-kind transfers will ensure that people get proper amount

50、s of nutrition.  A. TrueB. FalseC. Uncertain AACSB: Reflective ThinkingAccessibility: Keyboard NavigationBlooms: UnderstandDifficulty: 2 MediumTopic: Distribution of Income 19.Ignoring taxes when making redistributive decisions has no impact on equity.  A

51、. TrueB. FalseC. Uncertain AACSB: Reflective ThinkingAccessibility: Keyboard NavigationBlooms: UnderstandDifficulty: 2 MediumTopic: Distribution of Income 20.A redistribution is Pareto efficient if no one is made worse off afterward.  A. TrueB. FalseC.

52、60;Uncertain AACSB: Reflective ThinkingAccessibility: Keyboard NavigationBlooms: UnderstandDifficulty: 2 MediumTopic: Rationales for Income Redistribution 21.Social welfare functions require that a society has at least three people living in it.  A. TrueB. FalseC. 

53、Uncertain AACSB: Reflective ThinkingAccessibility: Keyboard NavigationBlooms: RememberDifficulty: 1 EasyTopic: Rationales for Income Redistribution 22.Income is the only factor used to measure a person's wealth.  A. TrueB. FalseC. Uncertain AACSB: Reflecti

54、ve ThinkingAccessibility: Keyboard NavigationBlooms: RememberDifficulty: 1 EasyTopic: Rationales for Income Redistribution 23.Ethics play a key role in income redistribution.  A. TrueB. FalseC. Uncertain AACSB: Reflective ThinkingAccessibility: Keyboard NavigationB

55、looms: RememberDifficulty: 1 EasyTopic: Rationales for Income Redistribution 24.Poverty is relative and not absolute.  A. TrueB. FalseC. Uncertain AACSB: Reflective ThinkingAccessibility: Keyboard NavigationBlooms: RememberDifficulty: 1 EasyTopic: Rationales for In

56、come Redistribution 25.Refer to the table below. Relative to their starting position, people in the fourth-fifth of the income distribution have seen the greatest decrease in their share of income.    A. TrueB. FalseC. Uncertain AACSB: Reflective Thinking

57、Blooms: UnderstandDifficulty: 2 MediumTopic: Distribution of Income 26.The poverty rate in the United States has decreased by more than 50% over the last 40 years.  A. TrueB. FalseC. Uncertain AACSB: Reflective ThinkingAccessibility: Keyboard NavigationBlooms: Reme

58、mberDifficulty: 1 EasyTopic: Distribution of Income 27.Measures of income before intervention are calculated on an annual rather than a lifetime basis.  A. TrueB. FalseC. Uncertain AACSB: Reflective ThinkingAccessibility: Keyboard NavigationBlooms: RememberDifficul

59、ty: 1 EasyTopic: Distribution of Income  Essay Questions 28.Suppose there are only two people, Mr. Mullinax and Ms. Fleming, who must split a fixed income of $500. For Mr. Mullinax, the marginal utility of income is MUm = 600 - 2Im, while for Ms. Fleming, marginal utility is MUf = 600 - 3If, where Im and If are the amounts of income to Mr. Mullinax and Ms. Fleming, respectively.(A) What is the optimal distribution of income if the social w