Exam 18: Income Distribution and Poverty

Which of the following is not true about income quintiles?

The Lorenz curve shows the

The problem with allocating income according to productivity is that some people have difficulty earning income.

Census data on the income distribution among families in the United States in recent years show

Because more than half the federal welfare budget goes for health care, almost zero U.S.residents lacked health insurance in 2009.

If the marginal productivity of labor was the sole determinant of household income in the U.S., then

The U.S.Department of Agriculture defines the official poverty level as

Income assistance programs

Taxes and in-kind transfers make the distribution of income more unequal.

On average, college graduates earn significantly more income than those with less education and the disparity tends to widen into middle age.

Compared to the distribution of money income, the distribution of income that takes into consideration the effects of taxes and in-kind benefits

Which of the following accounts for approximately three-fourths of all welfare spending?

The purpose of social insurance is to

In 2009, the official poverty level for a family of four was approximately

Social Security was established

The most recent data indicates households in the top fifth of the income distribution earn as much income as the bottom four fifths combined.

Which of the following is not a form of social insurance?

In the United States, the dramatic increase in government social spending since the mid-1960s has

Exhibit 18-1 Exhibit 18-1 shows five different Lorenz curves.Which curve shows the most unequal distribution of income?

Which of the following is a social insurance program?