Chapter 19 Preliminary Quiz
Efficiency vs. Equality: The Big Tradeoff

Multiple Choice Questions:

Enter your answer to each of the questions in the blank to the left of the question. Be sure to use lowercase letters only!

	1. The total receipts or cash earned by a person or household during a given time period is called: a. personal income b. wealth c. disposable personal income d. none of the above
	2. Disposable personal income is: a. attainable only in the absence of externalities. b. wealth minus taxes. c. personal income minus taxes. d. personal income minus wealth.
	3. Which of the following consists of the dollar value of financial and tangible assets, minus the amount of money owed to banks and other creditors? a. disposable personal income b. marginal income c. wealth d. none of the above
	4. The Lorenz curve: a. shows the difference between the supply and demand curves at all prices. b. shows the levels of income and wealth inequality in an economy. c. shows the level of imports and exports in an economy. d. none of the above.
	5. Income inequality is highest in which of the following countries: a. Sweden b. Great Britain c. United States d. Brazil
	6. Which of the following accurately describes poverty in the United States in recent years? a. Single-parent families headed by women are an increasingly large share of the poor population. b. About one-third of African-American, Hispanic, and Native American families have below-standard incomes. c. One of the biggest factors contributing to current trends in poverty in the United States is the increasing gap between the earnings of highly educated and skilled workers and those of unskilled and less-educated workers. d. All of the above.
	7. An economy in which government overrides market forces to protect individuals and to guarantee citizens a minimum standard of living is called a: a. subsistence state. b. social state. c. communist state. d. welfare state.
	8. Which of the following is a subsidized health program for those over 65 years of age? a. Social security b. Medicare c. WIC d. Medicaid
	9. A negative income tax: a. will provide subsidies to low income families. b. charge rich individuals a lower marginal tax rate than the tax rate paid by poor individuals. c. both a and b d. neither a nor b
	10. Nationalized health care would: a. be the same as Medicare. b. provide health care to all individuals on an equal basis. c. involve more HMO's and less government. d. none of the above.