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Question 39 2 pts
A labor union tends to ________ because it has market power.

have less influence
hire more labor
drive up wages

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Question 40 2 pts
Economist use the ________ method to study income distribution in an economy.

dividing a whole group into fourths, or quads
redistribution of wealth through taxes
dividing a whole group into fifths, or quintiles
wealth redistribution program

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Question 41 2 pts
A Lorenz curve graphs the ________ received by everyone up to a certain quintile.

normative shares of income
cumulative shares of income
unequal distribution over time

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Question 42 2 pts
Which of the following is NOT a potential source of income inequality ________.

decreased influence of unions
decreased demand for high-skilled workers
wage disparity

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Question 43 2 pts
The poverty line is determined by ________.

the level of income needed to cover basic needs
annual estimates based on a sampling of U.S. middle- and high-income households
surveys completed on the elderly

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Question 44 2 pts
A government has decided to phase out its antipoverty program support payments more slowly to help the near-poor become self-sufficient. One criticism about this policy is likely to be

that antipoverty programs shift wealth from the rich to the poor.
that the near-poor will not be required to pay back benefits.
that the near-poor may still lack skills for menial jobs.
that this antipoverty program costs the government more money.

Answer 1

39) option C) drive up wages

Labor union tends to increase wages

40) option C)

The whole population is divided in quintiles & then income distribution is found

41) option C)

Lorenz curve graphs the cumulative share of income against cumulative share of population & then gini coefficient of income inequality is measured

42) option B)

As demand for high skill workers fall, so income inequality will decrease

43) option A)

Poverty line is calculated by finding the minimum level of income to survive

44) option c)