1. The Lorenz curve shows
a. that income is unevenly distributed
b. that income is normally distributed
c. how income is distributed
d. that income is distributed according to talent and abilities
2. An income distribution in which all households receive exactly the same income is referred to as a(n)
a. just distribution of income
b. proportional distribution of income
c. equal distribution of income
d. equitable distribution of income
3. Studies of income mobility show
a. many lower-income households remain in the lowest quintile over time
b. a welfare trap exists over time
c. many of the lower-income households climb to middle-income and even to upper-income classes over time
d. those in the highest-income quintile stay there permanently
4. Channeling people according to sex or race into particular occupations tends to
a. lower the wage rate in these occupations
b. increase the wage rate in these occupations
c. reduce income inequality among occupations
d. affect employment opportunities, but not wage rates
5. Household wealth refers to
a. human capital
b. the flow assets
c. net worth
d. the flow of income