Exam 19: Economic Inequality

Netflix, an online DVD rental service, was established in 1997. In 2008, Netflix has more than 8.2 million subscribers. This technology has ________ in the labor market for video rental clerks.

The distribution of world income is ________ the distribution of U.S. income.

How do income and wealth change over a person's lifetime? How does this affect the distribution of income at a point in time?

Over the period from 1971 to 2011, the U.S. Gini ratio for household income ________, which means income inequality in the United States ________.

The data show that an individual's wealth tends to first increase and then to decrease over the person's lifetime.

The income that measures a household's earnings in the absence of government redistribution is called

Joe earns $100,000 per year. He pays a tax rate of 28 percent on the first $60,000 of income and a tax rate of 15 percent on income above $60,000. This tax system is an example of a

In the United States, the distribution of wealth, which is a ________, is ________ unequal than the distribution of income, which is a ________.

The measured distribution of ________ is a more accurate indicator of the degree of economic inequality than the measured distribution of ________ because ________ data does not include ________.

A tax is progressive if the average tax rate

What is the difference between market income and money income? Which is more equally distributed?

-In the figure above, line A represents the

One way the United States has tried to encourage welfare recipients to acquire human capital is by

In the United States, do the poorest 20 percent of the households receive more or less than 5 percent of total income?

In the United States, the percentage of households that have incomes below the mean income is

If one person has all the income and everyone else has none, the Gini ratio is zero.

Describe the effect education and training have on outcomes in the labor market.

"If the distribution of income was equal, the Lorenz curve would be a straight, 45° line." Is the previous statement correct or incorrect?

Since 1970, the distribution of income in the United States

For the United States, Lorenz curves show that