Exam 18: Income Distribution and Poverty

Recall the Economics in Practice on p. 371: According to a study discussed in the Economics in Practice, ________ matters in terms of an individual's future earnings.

In the summer of 2009, the United States federal minimum wage was raised to $7.25. According to theory, what will likely be the result of an increase in minimum wage?

The notion of ________ is that through income redistribution, the rich sacrifice a little and the poor gain a lot.

The Earned Income Tax Credit is

In the United States, most people's wealth comes from

Benefit levels for the Temporary Assistance to Needy Families (TANF) are set by ________ governments.

All government payments to individuals are called transfer payments.

In 2013, the top 10% of wealth holders owned ________ of the nation's wealth.

The largest single transfer program at the federal level is unemployment insurance.

The demand for Alaskan fishermen is the same as the demand for deep-sea divers in Hawaii. The annual earnings of Alaskan fishermen is 30% higher than the earnings of Hawaiian deep-sea divers. What is a possible explanation for this?

What percentage of United States personal income in 2017 came from transfer payments?

According to the ideas behind Rawlsian justice, income redistribution should maximize the well-being of the worst-off member of society.

An ________ distribution of income would yield a ________ curve that was a 45-degree line between 0 and 100%.

________ is available only to low-income families with children.

The two main sources of household income are wages/salaries and property income.

A theory of distributional justice that concludes that the social contract emerging from the original position would call for an income distribution that would maximize the well-being of the worst-off member of society is known as

For most countries, the Gini coefficient of market income is lower than the Gini coefficient of disposable income.

All of the following statements are true except

In 2013, the lowest incidence of poverty was for

In 2013, the bottom 90 percent of wealth holders in the United States had less than one-quarter of the total wealth.