Question

（1）

Wage discrimination occurs when people are paid different salaries based upon:

​education.

​working condition.

experience.

national origin.

responsibility.

(2)

Table 32

The following table shows the distribution of income in Widgetapolis.

Quintile Annual Family Income
Top Quintile (20%)	$110,000 and above
Second Quintile (20%)	$82,000 to $109,999
Third Quintile (20%)	$60,000 to $81,999
Fourth Quintile (20%)	$39,000 to $59,999
Bottom Quintile (20%)	Under $39,000

Refer to Table 32. If the poverty line were $46,141, what would be the poverty rate?

Group of answer choices

less than 20%

between 20% and 40%

between 40% and 60%

between 60% and 80%

(3)

Table 25

Quantity of Number of Bracelets	Labor Per Week
0	0
1	200
2	360
3	480
4	560
5	600

Refer to Table 25. The table shows the number of bracelets that can be assembled per week by various numbers of workers. If the price per bracelet in a perfectly competitive product market is $8, how many workers would the firm employ if the weekly wage rate is $600?

1

2

3

4

5

(4)

Table 26

Days of Labor Units of Output
0	0
1	10
2	16
3	20
4	23
5	25
6	26

Refer to Table 26. Suppose that the firm pays its workers $50 per day. Each unit of output sells for $20. How many days of labor should the firm hire?

3

4

5

6

(5)

Suppose that technological progress increases the productivity of teachers, and the demand for teachers increases. Which of the following accurately describes the labor market for teachers after the technological change? Equilibrium wages will

rise, and the equilibrium quantity of teachers employed will fall.

rise, and the equilibrium quantity of teachers employed will rise.

fall, and the equilibrium quantity of teachers employed will fall.

fall, and the equilibrium quantity of teachers employed will rise.

(6)

Table 31

Income Inequality in 2018 in the Chabottant Island by Race

The values in the table reflect the percentages of pre-tax-and-transfer income.

Race Bottom Fifth	Asian 3.0%	Black 3.5	Hispanic 2.7	White 3.6
Second Fifth	8.90%	9	7.9	8.8
Middle Fifth	15.30%	14.7	14.2	14.9
Fourth Fifth	24.50%	23.3	23.6	23.4
Top Fifth	48.30%	49.4	51.6	49.3
Top 5%	19%	20.6	21.4	21

Refer to Table 31. According to the information in the table, which race had the most income inequality in 2018?

Asian

Black

Hispanic

White

(7)Table 30

Country Gini Coefficient
Sweden	0.24
France	0.275
Italy	0.319
United Kingdom	0.334
Portugal	0.395
Latvia	0.377

Refer to Table 30. Which of the following statements is correct?

Portugal has a more unequal distribution of income than United Kingdom.

France has a more unequal distribution of income than Italy.

Sweden has the most unequal distribution of income.

United Kingdom has a more equal distribution of income than France.

Answer 1

Q1) option 4)

National origin,

Wage discrimination doesn't occur on basis of worker talent or productivity

.

2) option 2)

Bottom Quantile is below poverty line

While some people of fourth Quantile, also have income less than poverty line level

So overall poverty rate less than 40% but above 20%

.

3) option 4) 4

At eqm, MRPL = wage = 600

P*MPL >= 600

MPL> = 600/8 = 75

So at L = 4 , MPL = 80 ,

At L = 5, MPL = 60

.

4) option 2) 4

VMPL >= wage. = 50

MPL >= (50/20) = 2.5

At L = 4, MPL = 3

At L = 5, MPL = 2

5) option 2)

Labor demand curve shifts right, supply curve unchanged,

So wage rises, eqm Quantity hired also rises

6) option 3)

Hispanic

7) option 1)

Higher values of G imply higher income inequality

So G of Portugal is higher than G of UK, so income distribution is more unequal in Portugal