11.One common way of measuring income inequality is to rank all households by income, from lowest to highest, and then to divide all households into five groups with equal numbers of people, known as quintiles.

Select one:

a.True

b.False

12.

equation: _____________= (change in total utility) / (change in quantity)

Select one:

a.Maximize utility

b.Budget constraint

c.Marginal utility

13.

The positive externalities to education typically include better health outcomes for the population, lower levels of crime, a cleaner environment and a more stable, democratic government.

Select one:

a.True

b.False

14.

The typical response to higher prices is that a person chooses to consume less of the product with the higher price.

Select one:

a.True

b.False

15.

______________is taking income from those with higher incomes and providing income to those with lower incomes.

Select one:

a.Earned income tax credit (EITC)

b.Redistribution

c.Perfect elasticity

16.

A market exchange that affects a third party who is outside or "external" to the exchange is .

Select one:

a.Negative externality

b.Positive externality

c.Externality

17.

Traditional consumer theory ignores people's state of mind or feelings, which can influence behavior.

Select one:

a.True

b.False

18.

What is another name for externality?

Select one:

a.Normal goods

b.Spillover

c.Pollution emissions

19.

nvestigating how given dollar amounts can mean different things to individuals depending on the situation is behavioral economics.

Select one:

a.True

b.False

20.

Income inequality is when one group receives a disproportionate share of total income or wealth than others.

Select one:

a.True

b.False