income inequality MCQs – Page 3

Practise focused income inequality questions with marked answers for exam preparation and subject revision.

income inequality Mcqs

41. In Pakistan the term the poverty trap is used to describe the fact that ?
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A. the Pakistan benefit system makes being poor vary degrading

B. if poor people earn more their benefits fall, making them no better off.

C. poor people are excluded from most leisure and social activities

D. in the Pakistan poor people are heavily taxed

42. Tax shifting ?
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A. occurs when taxes cause prices to increase but wages to fall.

B. occurs when households can alter their behaviour and do something to avoid paying tax

C. is the way in which a tax is structured

D. is the ultimate distribution of a taxs burden

43. 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 ?
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A. none of these answers

B. all of these answers

C. libertarianism

D. utilitarianism

44. The Benazir Benefit income Scheme is a good example of ?
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A. a universal (social insurance based) benefit

B. a benefit in kind.

C. none of the above

D. a means tested cash benefit

45. The marginal tax rate is ?
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A. your total income divided by the total amount of tax you pay.

B. the additional tax you pay divided by your total income

C. the tax rate you pay on any additional income that you earn.

D. the total amount of tax you pay divided by your total income

46. A progressive income tax means that those with a higher income pay ?
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A. the same percentage of their income in taxes as low income people all the taxes in the economy.

B. all the taxes in the economy

C. a lower percentage of their income in taxes than low income people

D. a higher percentage of their income in taxes then low income people

47. The greatest advantage of a negative income tax is that it ?
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A. reduces the cost to the government of fighting poverty

B. would not provide benefits to lazy people

C. generates a smaller disincentive to work than most alternative anti-poverty policies.

D. ensures that the poor actually receive what the government thinks they need does all these answers.

48. Constrained choice is relevant for households ?
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A. making spending decision but not labour-supply decision.

B. making both spending and labour-supply decisions

C. considered to be poor but not for those who are considered to be rich

D. making labour-supply decisions but not spending decisions.

49. The stock of knowledge, skills and talents that people possess is called ?
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A. training investment

B. human capital

C. skill capital

D. skill-building investment

50. The marginal revenue product of labour is ?
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A. the additional revenue a firm earns by employing on additional unit of labour

B. the additional revenue the firm makes by selling one unit of labour.

C. the additional profit a firms earns by employing one additional unit of labour

D. the marginal product of capital times the price of labour.

51. 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?
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A. utilitarianism, liberalism, libertarianism

B. libertarianism liberalism, utilarianism

C. liberalism, libertarianism, utilitarianism

D. All three political philosophies argue for similar degree of income redistribution

E. libertariansim, utilitarianism, libertarianism

52. A Gini coefficient of zero means that the ?
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A. all the income is received by the top 20% of the income distribution

B. one person has all the income and every one else has nothing

C. the income is split equally between the top 20% and the rest of the distribution

D. income is equally distributed

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