Exam 19: Economic Inequality

Which of the following statements is TRUE?

If human capital was included in the measurement of wealth, the measurement of wealth would be

-The above table shows the distribution of wealth and income in Miseria. Ninety-five percent of the wealth is owned by what percent of the population?

-In the figure above, the poorest 20 percent of households receive ________ of total income.

High-skilled workers earn more than low-skilled workers in part because

-In the above figure, the Lorenz curve for income is shown. If the data used are from the United States, and the U.S. Lorenz curve for wealth was added to the diagram, it would be

Because of their higher value of marginal product,

In the country of Konswano there are 4 people. Each person lives for 40 years. In their first 10 years, they earn no income. In the next 20 years, they earn $40,000 per year and in the last 10 years they earn no income. Each year their consumption is $20,000. If everyone in Konswano is 25 years old, then the Lorenz curve for income is ________.

-In the above figure, an innovation that increases the demand for high-skilled workers and decreases the demand for low-skilled workers will

-According to the 2007/2008 United Nations Human Development Report, the Gini ratio for Portugal is 38.5, Norway is 25.8, the United States is 40.8, and Russia is 39.9. Which of these four countries has the highest level of income equality?

An example of an income maintenance program is

With respect to redistribution, one reason "The Big Tradeoff" exists is because

The 2010 U.S. Federal Personal Income six tax brackets range from 10 percent for individuals earning less than $8,025 to 35 percent for those earning over $357,700 whereas the Lithuanian tax rate for all citizens' income is 24 percent. The Lithuanian income tax system is a ________ tax and the U.S. income tax system is a ________ tax.

Which of the following correctly describes characteristics of people who earn high incomes? I. Older, retired households have the highest incomes. II) Married couples earned the highest incomes. III) Households with Bachelor's degrees have higher incomes than households with doctorate degrees.

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. Sue's income is ________ and Todd's income is ________.

Welding has changed dramatically over the last decade with more welding jobs dependent on the use of computers. Computers are a complement only for high-skilled welders, so as more welding companies buy computers the wages of high-skilled welders will ________ and the wages of low-skilled welders will ________.

A Lorenz curve measures

Information technologies ________ the demand for low-skilled labor, increase the ________ high-skilled labor, lower the wage rate of ________ labor, and raise the wage rate of ________ labor.

-An economy has the income shares information in the table above. Which of the following is true?

A proportional income tax is a tax that taxes income at a constant rate.