6 Resources and the Distribution of Inequality Online Quiz Questions

True

False

The household has high wealth but low income because it has valuable assets.

The household has high income but low wealth because it earns a lot now but has little savings and substantial debt.

The household has high income and high wealth because income and wealth always rise together.

The household has low income and high wealth because wealth measures money received over a period.

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False

The median must rise more than the mean because it is the arithmetic average.

Both the median and mean must rise by the same amount.

The mean may rise substantially while the median changes little, because a very high value can pull up the mean.

The mean must fall because adding an unusually high value lowers an average.

Inequality is simply the sum of individual choices, so institutions have no meaningful role.

Institutions and public policies can shape how resources translate into outcomes.

Public policies affect wealth but cannot influence educational or occupational opportunities.

Institutions matter only after people have already entered high-paying jobs.

A family helps pay for a child's education.

A family's resources guarantee that a child will achieve a particular outcome.

Parents share knowledge about schools and work.

A family uses its social connections to help someone learn about opportunities.

Specify whether income is pretax cash income or income after taxes and credits.

Account for household size when comparing household income.

Assume that household income automatically accounts for differences in household size.

Adjust comparisons across years for inflation.

Use the same wealth definition even if it leaves unclear which assets and debts are included.

This could reflect absolute improvement without showing that relative mobility is strong.

This proves relative mobility is strong because educational attainment increased.

This proves nobody experienced absolute improvement because family background still matters.

This shows that absolute and relative mobility mean the same thing.

A person receives wages from a job.

A person earns rent from a property they own.

A person receives a one-time paycheck for work completed.

A person gets a promotion that increases their salary.

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False

They pass on only money or property, since less tangible advantages cannot affect opportunity.

They ensure that children will enter the same occupation as their parents.

They may pass on knowledge, expectations, and contacts that help children navigate school and work.

They remove the influence of schools and employers from children’s later opportunities.

Education can expand access to occupations, yet unequal resources can shape who has educational opportunities.

Education eliminates the effects of family resources on later opportunities.

Education only reflects earlier inequality and cannot contribute to mobility.

Educational opportunity is equal whenever students have similar academic ability.

The median includes only the highest-income families, while the mean includes only the lowest-income families.

Very high values can influence the mean more than the median, so the two measures can move in different directions.

The mean measures the midpoint, while the median is the arithmetic average.

The two measures must move in the same direction, so the reported changes cannot both be correct.