ECO 204 Week 5 Quiz

ECO 204 Week 5 Quiz

Week 5 Quiz

Score for this quiz: 9 out of 10

Question 1

1 / 1 pts

In a competitive labor market, the distribution of income is determined by __________.

the decision to invest or disinvest in human capital

socially determined standards of fairness

Correct!

the degree of labor productivity

the doctrine of comparable worth

Question 2

1 / 1 pts

What market is the largest part of the resource market?

land

entrepreneurship

capital

Correct!

labor

Question 3

0 / 1 pts

If a firm is a monopoly and a perfect competitor in the resource market, which of the following will occur?

The firm will decide the wage it pays its workers, which will affect workers’ wages in competitive industries.

Correct Answer

The firm will restrict output and therefore employ fewer workers than a competitive industry would.

The firm will hire the same quantity of workers as a competitive industry would and will pay them the same wage.

You Answered

The firm will hire fewer workers than a competitive industry would because it can exploit the workers.

The answer can be found in Chapter 12, Section 12.3, A Competitive Labor Market With a Monopolistic Product Market.

Question 4

1 / 1 pts

A Lorenz curve that is a 45-degree line implies that __________.

Correct!

household incomes have perfect equality in income distribution

transfer payments are perfectly unequal

transfer payments are perfectly equal

household incomes share consistent distribution inequality

Question 5

1 / 1 pts

In 1964, when official poverty standards were established in the United States, a typical family spent __________ of its income on food.

one fifth

one half

one fourth

Correct!

one third

Question 6

1 / 1 pts

What is the primary difference between welfare and workfare?

Welfare offers benefits to any adult who is willing to work someday.

Correct!

Workfare offers services and job training to able welfare recipients.

Workfare appeals to legally disabled welfare recipients.

Welfare appeals to both liberal and conservative politicians.

Question 7

1 / 1 pts

In public choice theory, what assumption is made regarding the private market?

The private market never fails; thus, there is no need for government intervention.

The private market and the government both encourage public interest rather than self-interest.

Correct!

The private market may fail, but the government may also fail in attempting to correct the problem.

The private market may fail, but government will always improve the outcome.

Question 8

1 / 1 pts

The commitment of scarce resources to capture returns created politically is called __________.

cost minimizing

Correct!

rent seeking

logrolling

profit maximizing

Question 9

1 / 1 pts

Which of the following scenarios is an example of logrolling?

Ned joins Avena to help write a finance reform bill for the state legislature.

Luis adds a rider to a health care bill to raise the age of dependents to be insured.

Correct!

Tanisha votes for Alejandro’s school construction if Alejandro votes for Tanisha’s farm subsidies.

Rebecca convinces her party to vote for funds to recruit more firefighters.

Question 10

1 / 1 pts

What is the term for the transfer of governmental activities to the nongovernmental sector?

asset depletion

logrolling

Correct!

privatization

incentivizing

Quiz Score: 9 out of 10