Chapter 19. Marginal Productivity and the “1%”

EIA Activity: Marginal Productivity and the “1%”

1. Question

   Use Link 1 to answer the following questions. True or False: The upper-50s is the median age of both the 1% and 0.1%.

   A.

   True.

   B.

   False.

2. Question

   True or False: In order for a thirty-year-old earning $135,000 in 2010 to stay in the top percentile, they would need to raise their salary by $80,000 by age 35, and then raise their salary again by an additional $70,000 before turning 45.

   A.

   False.

   B.

   True.

3. Question

   True or False: Since 1983, the gap between the top 1% and the 0.1% has grown at every age level.

   A.

   False.

   B.

   True.

4. Question

   Which of the following is true for women?

   A.

   Women are 49% of the bottom 99%.

   B.

   Women are 11% of the top 1%.

   C.

   Women are 9% of the top 0.1%.

   D.

   All of the above

5. Question

   Use Link 2 to answer the following question. How much estimated household income would one need to earn in Washington, D.C. in order for one to be in the top 1% of the income distribution?

   A.

   $309,000

   B.

   $342,000

   C.

   $688,000

   D.

   $455,000

6. Question

   What amount of annual income do you expect to earn after you graduate from college? Discuss.

   Your response will be graded by your instructor.

   What amount of annual income do you expect to earn after you graduate from college? Discuss.

7. Question

   What amount of annual income would allow you to live a comfortable lifestyle? Discuss.

   Your response will be graded by your instructor.

   What amount of annual income would allow you to live a comfortable lifestyle? Discuss.

• Point per question: 1pts for short answer 1pts for multiple choice
• number of attempts on quiz as a whole: 1 or unlimited?
• set which score reports to Gradebook: first, most recent, highest, or average
• Randomize answers (for multiple choice questions only)? Yes or no