Search
.Management Sciences
Category: Income Inequality
The marginal revenue product of labour is ?
A. the marginal product of capital times the price of labour.
B. the additional revenue a firm earns by employing on additional unit of labour
C. the additional profit a firms earns by employing one additional unit of labour
D. the additional revenue the firm makes by selling one unit of labour.
Because people’s income vary other the life cycle and because there are transitory shocks to people’s incomes the standard measures of income distribution ?
A. exaggerate the inequality of living standards
B. could exaggerate or understate the inequality of living standards depending on whether the transitory shocks are positive or negative
C. understate the inequality of living standards
D. accurately represent the true inequality of living standards
The stock of knowledge, skills and talents that people possess is called ?
A. training investment
B. skill capital
C. skill-building investment
D. human capital
Assuming leisure is a normal good, if the income effect is greater than the substitution effect a wage increase ?
A. will have no effect on labour supply
B. will decreases labour supply
C. could cause either an increases or a decrease in labour supply
D. will increase labour supply.
Housing Benefit is a good example of ?
A. a means tested cash benefit
B. a universal (social insurance based) benefit
C. a benefit in kind
D. none of the above
Because in-kind transfers are not accounted for in standard measures of income distribution the standard measures of income distribution ?
A. accurately represent the true inequality of living standards
B. understate the inequality of living standards
C. exaggerate the inequality of living standards
D. could exaggerate of understate the inequality of living standards depending on whether the transfers are goods or services.
Constrained choice is relevant for households ?
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.
The maximin criterion suggested by Rawls’s theory of justice means that the government should aim to ?
A. Maximize the total utility of society
B. Maximize the well-being of the worst-off person in society
C. minimize the difference between the rich and poor
D. maximize the economic freedom of individuals by minimizing government interference in private decision making
E. minimize the well-being of the best-off person in society
The formula for the marginal revenue product of labour (L is for labour, X is the product) is ?
A. MPL + PX
B. (MPL) (PX)
C. PX/MPL
D. MPL/PX
Rawls’s miximin criterion does not mean that there should be redistribution so as to equalise everyone’s incomes in society because ?
A. Such redistribution would mean that those who worked hard were no better off than those who were lazy and this would be unfair.
B. such redistribution would not maximize the total income of all members of society
C. Such redistribution would remove the incentive to work hard, so society’s total income would fall, and so the least well off person would be worse off than they could be under a system in which there was some inequality income.
D. such redistribution would amount to confiscation of honestly earned income from higher earners and so would be unjust.
Recent Comments