Indices of income distribution measure ?

Related Mcqs:

1. 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.

2. 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

3. The functional distribution of income shows how national income is divided between ?

   A. employees
   B. the population
   C. the factors of production
   D. the working population

4. The World Bank’s GNP per capita classification for low income middle income and high income countries respectively is ?

   A. less than $900, $900-$9000 and more than $9000
   B. less than $5000, $5000-$15000 and more than $15000
   C. less than $100, $100-$1000 and more than $1000
   D. less than $5000, $5000-$150000 and more than $150000

5. A tax for which high income taxpayers pay a smaller fraction of their income than do low income taxpayers is known as ?

   A. a proportional tax
   B. a regressive tax
   C. an equitable tax
   D. a progressive tax

6. If the income tax rate changes from 30% to 40% on income over Rs30,000 and a person’s income is Rs 31,000 then her marginal tax rate is ?

   A. 30%
   B. 10%
   C. 70%
   D. 40%

7. Sala-i-Martin interpolates income distribution by ?

   A. quientiles
   B. percentiles
   C. simulation
   D. relative ratio measures

8. We measure national income by this method ?

   A. Expenditure method
   B. Income method
   C. Product method
   D. All of the above

9. Which is most likely to cause a more even distribution of income ?

   A. An increase in indirect taxes
   B. An increase in managers salaries
   C. An increase in progressive taxation
   D. An increase in the rate of inflation

10. Polish economist Oskar Lange’s model of decentralized ______ combined the advantages of market allocation with more uniform income distribution by dividing the returns from social ownership of nonhuman productive resources among the whole population ?

    A. market socialism
    B. capitalism
    C. mixed economy
    D. monopoly