Exam 19: Economic Inequality

Lifetime income is distributed

The supply curve for high-skilled labor lies to the

-In the figure above, the second poorest fifth of all households receive what share of all income?

The Gini ratio is a measure of

In the United States the richest 20 percent of households receive about ________ of total income.

Which of the following REDUCES equality of income or wealth relative to the market distribution?

Over the past decade, the incomes of the top 1 percent have increased while the incomes of the middle class declined. These changes mean that the Lorenz curve moved ________ the 45 degree line and the Gini ratio has ________.

Over the past decade, the incomes of the top 1 percent have increased while the incomes of the middle class declined. These changes mean that the Lorenz curve moved ________ the 45 degree line and the Gini ratio has ________.

-In the figure above, the Lorenz curve that shows the least inequality, but NOT perfect equality, is

The median wage among physicians is over $166K a year, while the median salary for physician assistants is $86K a year. These salaries suggest that physicians have ________ human capital than physician assistants and hence the demand for labor for physicians is ________ than the demand for labor for physician assistants.

The actual income distribution might be more equal than current official figures suggest because current official figures ignore the return on human capital.

If the area between the line of equality and the Lorenz curve is 1,250, and the entire area beneath the line of equality is 5,000, the Gini ratio is

-What type of income tax is reflected in the table above?

-The above figure shows the demand and supply curves for high-skilled and low-skilled labor. The wage rate

In recent years, information technology such as computers and scanners have been a ________ for low-skilled labor and have led to ________ wage rates for low-skilled workers.

-Using the table provided above to construct Lorenz curves representing 1990 and 2011, what do you discover and how is this interpreted?

-In the figure above, in the market for low-skilled labor, the equilibrium wage rate is

Among the United States, Finland, and South Africa, income is distributed most equally in ________ and least equally in ________.

Sue has human capital worth $500,000 and nonhuman capital of $100,000. Todd has human capital worth $10,000 and nonhuman capital of $50,000. The return on each type of capital is 10 percent a year. According to the Census Bureau in the national wealth and income survey, Sue is ________.

-In the figure above, the poorest 40 percent of households receive ________ of total income.