Question

True or False?

1. When comparing average wages for black and white men in the United States, wages paid to black men have been about 20 percent less than those paid to white men.

2. David and Nate work for two different companies, but each performs the same job working on a loading dock. David, however, earns a higher salary than his friend Nate The difference in salary could illustrate union wages if David’s annual salary is covered by a collective bargaining agreement and Nate’s is not.

3. John Rawls, who developed the way of thinking called liberalism, argued that government policies should be aimed at maximizing the sum of utility of everyone in society.

4. One example of labor-market discrimination is that a firm may be less likely to interview a job candidate whose resume clearly indicates he is not a good fit for the job.

5. Critics argue that a disadvantage of the Earned Income Tax Credit is that it does not effectively target the working poor because many recipients are the teenage children of middle-income families.

6. Critics argue that a disadvantage of minimum-wage laws is that they do not effectively target the working poor because many minimum-wage workers are the teenage children of middle-income families.

7. Suppose the government implemented a negative income tax and used the following formula to compute a family’s tax liability:

Taxes owed = (1/4 of income) - $14,000

Refer to this scenario, A family earning $40,000 before taxes will owe tax.

Answer 1