Test Bank Microeconomics Canada in the Global Environment 12th Edition By Michael Parkin, Robin Bade

TEST BANK
All Chapters 1-18, 100% Original
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All Chapters Arranged Reverse: 18-1




Microeconomics
Canada in the Global
Environment
Twelfth Edition
Michael Parkin
Robin Bade

,Microeconomics: Canada in the Global Environment, 12e (Parkin)
Chapter 18 Economic Inequality

18.1 Measuring Economic Inequality

1) Which of the following variables does Statistics Canada use to provide measures of
economic inequality?
A) market income only
B) market income and after-tax income only
C) after-tax income only
D) total market and after-tax income only
E) market income, total income, and after-tax income
Answer: E
Diff: 1 Type: MC
Topic: Measuring Economic Inequality

2) What is market income?
Market income equals the wages
A) interest, rent, and profit earned in factor markets after paying income taxes.
B) interest, and profit earned in factor markets before paying income taxes.
C) interest, and rent earned in factor markets before paying income taxes.
D) interest, rent, and profit earned in factor markets before paying income taxes.
E) rent, and profit earned in factor markets before paying income taxes.
Answer: D
Diff: 1 Type: MC
Topic: Measuring Economic Inequality

3) Which of the following calculations equals total income?
A) market income minus payments to firms by governments
B) market income plus cash payments to households by governments
C) the wages, interest, rent, and profit earned in factor markets before paying income taxes
D) the wages, interest, rent, and profit earned in factor markets after paying income taxes
E) market income minus cash payments to households by governments
Answer: B
Diff: 1 Type: MC
Topic: Measuring Economic Inequality

4) Which of the following statements calculates after-tax income?
A) total income minus tax payments by households to governments
B) total income minus tax payments by households to firms
C) total income plus tax payments by households to governments
D) market income plus cash payments to households by governments
E) market income minus tax payments by households to governments
Answer: A
Diff: 1 Type: MC
Topic: Measuring Economic Inequality


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,5) In 2020, what was the median household income in Canada?
A) $20,000
B) $29,999
C) $66,800
D) $80,600
E) $50,700
Answer: C
Diff: 2 Type: MC
Topic: Measuring Economic Inequality

6) In 2020, what was the mean household income in Canada?
A) $80,600
B) $56,000
C) $29,999
D) $30,000
E) $66,800
Answer: A
Diff: 2 Type: MC
Topic: Measuring Economic Inequality

7) In 2020, what percentage of households received the mode income in Canada?
A) 7.2 percent
B) 13.0 percent
C) 10.6 percent
D) 50 percent
E) 20 percent
Answer: C
Diff: 2 Type: MC
Topic: Measuring Economic Inequality

8) In 2020, what was the mode income received by 10.6 percent of households in Canada?
It was between
A) $18,500 and $21,999.
B) $15,000 and $19,999.
C) $20,000 and $29,999.
D) $16,000 and $22,500.
E) $18,000 and $24,999.
Answer: C
Diff: 2 Type: MC
Topic: Measuring Economic Inequality




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, 9) Which of the following curves looks like income distribution in Canada?
A) a bell-shaped curve
B) a positively skewed curve
C) a negatively skewed curve
D) a straight line
E) an unfair bell-shaped curve
Answer: B
Diff: 2 Type: MC
Topic: Measuring Economic Inequality

10) In 2020, the poorest 20 percent of Canadian households received what percentage of the
nation's after-tax income?
A) 13.7 percent
B) 8.5 percent
C) 20.2 percent
D) 17.8 percent
E) 23.2 percent
Answer: B
Diff: 2 Type: MC
Topic: Measuring Economic Inequality

11) In 2020, the 20 percent of Canadian households with the highest incomes received what
percentage of the total after-tax income?
A) 20 percent
B) 23.3 percent
C) 71 percent
D) 36.6 percent
E) 61.3 percent
Answer: D
Diff: 2 Type: MC
Topic: Measuring Economic Inequality

12) What is an income Lorenz curve?
A) A curve that graphs the cumulative percentage of income against the cumulative percentage
of households.
B) A curve that measures the income among households ranked from the poorest to the richest.
C) A curve that measures the income among households ranked from the richest to the poorest.
D) A curve that measures the factor prices earned by the rich compared with the poor.
E) A straight line that compares incomes across households.
Answer: A
Diff: 1 Type: MC
Topic: Measuring Economic Inequality




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