Assignment:
1. The top 20% of households in the US were responsible for what percentage of money income in 2017? (state your answer as a percentage; for example, 0.45 = 45, 0.007 = 0.7)
2. The bottom 20% of households in the US were responsible for what percentage of money income in 2017? (state your answer as a percentage; for example, 0.45 = 45, 0.007 = 0.7)
3. The top 40% of households in the US were responsible for what percentage of money income in 2017? (state your answer as a percentage; for example, 0.45 = 45, 0.007 = 0.7)
4. Income is composed of
A earned income, money stored as gold, and taxes
B earned income, property income, and transfer payments
C earned income, foreign currency holdings, and bonds
D transfer payments, earned income, and baseball tickets
5. In 2017, US total personal income was
A $10.4 billion
B $3.2 billion
C $2.85 billion
D $16.4 billion
6. Transfer payments accounted for what percentage of total personal income in 2017?
A 63%
B 19%
C 17%
D 37%
7. Which region of the US had the highest median income in 2017?
A Midwest
B Northeast
C South
D West
8. Which age group had the lowest median income in 2017?
A 15-24 years
B 25-34 years
C 35-44 years
D 45-54 years
E 55-64 years
9. The trend of female-to-male earnings ratio is
A rising
B falling
10. Suppose incomes for 5 different segments of the population are 1, 2, 4, 40, and 53, respectively. Use the online calculator at shlegeris.com/gini to find the Gini coefficient, and enter your answer here.
11. Which of the following is not an assumption of the theory of perfect competition?
A There are many sellers and many buyers, none of which is large in relation to total sales or purchases.
B Buyers and sellers have all relevant information with respect to prices, product quality, and sources of supply.
C Each firm produces and sells a differentiated product.
D There is easy entry and exit.
12. Perfectly competitive firms are price takers for all of the following reasons except that
A each firm is quite small relative to the total market supply.
B barriers to exit force firms to sell at the market price.
C the product is homogeneous.
D buyers and sellers have all the necessary information about prices, etc.
13. The demand curve for a perfectly competitive firm
A is downward sloping.
B is upward sloping.
C is perfectly horizontal.
D is perfectly vertical.
E may be downward or upward sloping, depending upon the type of product offered for sale.
14. The profit-maximizing perfectly competitive firm will seek to produce output such that
A average variable cost is at a minimum.
B average total cost is at a minimum.
C average fixed cost is at a minimum.
D marginal cost equals marginal revenue.
15. For a perfectly competitive firm,
A the marginal revenue curve and the demand curve are the same.
B the marginal revenue curve and the marginal cost curve are the same.
C the supply curve and the marginal revenue curve are the same.
D the demand curve and the marginal cost curve are the same.
E none of the above
16. Refer to the exhibit. The dollar amounts that go in blanks A and B are, respectively,
|
Price
|
Quantity Sold
|
Marginal Revenue
|
|
$14
|
100
|
|
|
$14
|
101
|
A
|
|
$14
|
102
|
B
|
|
$14
|
103
|
C
|
|
$14
|
104
|
D
|
A $1 and $14.
B $14 and $14
C $0.139 and $0.137.
D $14 and $7.
17. If MR > MC, then
A the firm is producing too much of the good to be maximizing profits.
B the firm can increase its profits or minimize its losses by increasing output.
C profits will be at their maximum.
D the firm is necessarily incurring losses.
18. True or false: the demand curve for a perfectly competitive firm is downward sloping.
A True
B False
19. For a perfectly competitive firm,
A P=MR
B P>MR
C P
D none of the above
20. Marginal revenue is
A the change in total revenue divided by the change in quantity.
B the change in price divided by total cost.
C half of the tax rate.
D incalculable.
Attachment:- Distribution of Income and Poverty.rar