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[Solved]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... [Show More] 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 [Show Less]

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