This quiz works best with JavaScript enabled. Home > Income > Distribution > Income Distribution – Quiz 1 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Income Distribution Quiz 1 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A problem of universal benefits is A) Disincentive to work. B) Poverty trap. C) It is regressive. D) Free Rider problem. Show Answer Correct Answer: D) Free Rider problem. 2. In most places, the rich will always get richer and the poor will always get poorer. A) True. B) False. C) Not stated. D) None of above. Show Answer Correct Answer: C) Not stated. 3. Which of the following does not explain why wealth is unevenly distributed: A) Property ownership. B) Different levels of wages. C) Entrepreneurship/ enterprise. D) Taxes on inheritance. Show Answer Correct Answer: D) Taxes on inheritance. 4. People living below a certain income threshold or unable to afford certain basic goods & serv A) Absolute poverty. B) Relative poverty. C) Neither 1 nor 2. D) None of above. Show Answer Correct Answer: A) Absolute poverty. 5. Which of the following factors of production gives the reward profit? A) Land. B) Labour. C) Capital. D) Enterprise. Show Answer Correct Answer: D) Enterprise. 6. What is the Gini Index? A) Space between the Lorenz Curve and perfect equality. B) The Gini Coefficent translated to be out of 100. C) The Gini Coefficent multiplied by the Lorenz Curve. D) None of above. Show Answer Correct Answer: A) Space between the Lorenz Curve and perfect equality. 7. A social insurance system that provides benefits to Americans who are sick, retired or disabled. A) Social Security. B) Abilities. C) Medicare. D) Taxes. Show Answer Correct Answer: A) Social Security. 8. What does the Lorenz Curve illustrate? A) Inequality. B) Perfect equality. C) Almost perfect equality. D) None of above. Show Answer Correct Answer: A) Inequality. 9. Uneven distribution of income can be due to: A) Different Abilities. B) Differences in age and experience. C) Diffferences in gender. D) All the above. Show Answer Correct Answer: D) All the above. 10. A mechanism which means people are forced to stay poor and they cannot escape from poverty. A) Income inequality. B) Underdevelopment. C) Poverty trap. D) All of the above. Show Answer Correct Answer: C) Poverty trap. 11. Which does not cause income inequality? A) Improved education provision. B) Poor skills and training. C) Age. D) Increased unemployment. Show Answer Correct Answer: A) Improved education provision. 12. The term used for gathering consumer preferences for products and services A) Survey. B) Market Research. C) Questionnaire. D) Google Search. Show Answer Correct Answer: B) Market Research. 13. The average tax rate increases when income increases. A) Regressive income tax. B) Proportional income tax. C) Progressive income tax. D) Negative Income tax. Show Answer Correct Answer: C) Progressive income tax. 14. It is better to have a Gini Coefficent closer to ..... A) 0. B) 100%. C) 10. D) 1. Show Answer Correct Answer: A) 0. 15. The poor in rich countries are not grateful that they are better off than the poor in really poor countries. A) True. B) False. C) Not stated. D) None of above. Show Answer Correct Answer: C) Not stated. 16. Fairness, or an acceptable distribution of income and wealth in society A) Efficiency. B) Equality. C) Equity. D) All of the above. Show Answer Correct Answer: C) Equity. 17. Wages will be higher for individuals who A) Are low skilled. B) Work in industries where there is excess supply of staff. C) Have high levels of skills. D) Work in industries where there is low demand for their skills. Show Answer Correct Answer: C) Have high levels of skills. 18. Wealth A) Is the value of an individual's annual income. B) Is likely to fall due to inheritance. C) Is rising in the South of the UK due to rising property prices. D) Will rise as people's income falls. Show Answer Correct Answer: C) Is rising in the South of the UK due to rising property prices. 19. A numerical measure of inequality A) Lorenz curve. B) Gini Coefficient. C) Negative income tax. D) All of the above. Show Answer Correct Answer: B) Gini Coefficient. 20. Income earned from ownership of property A) Wealth. B) Wages. C) Taxes. D) Rent. Show Answer Correct Answer: D) Rent. Next →Related QuizzesIncome QuizzesIncome Distribution Quiz 2Income Distribution Quiz 3 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books