Exam 20: Income Inequality and Poverty

Outline the possible work disincentives created by anti-poverty programs. Is there a way to solve this problem without causing other forms of inefficiency to arise? Explain your answer.

In 2011, the poverty rate in the United States was 15 percent. This means that 15 percent

According to utilitarians, the ultimate objective of public actions should be to

The poverty line is based on the percentage of people who cannot afford an adequate diet.

If the imposition of a binding minimum wage results in much higher unemployment among workers seeking minimum wage jobs,

The poverty line is set by the government so that 10 percent of all families fall below that line and are thereby classified as "poor."

What is meant by a perfectly equal distribution of income? Use a graph to depict such a situation.

The concept of utility is fundamental to utilitarianism and describes the

When considering a person's standard of living, data on the income distribution and the poverty rate may provide an incomplete picture because the poor may

The federal government sets the poverty line at roughly

Of the following countries, which has the most equal distribution of income? United States, Brazil, Mexico, China, Japan, Germany, United Kingdom, Russia

Table 20-13 The following table shows the distribution of income in Widgetapolis. ​ -Refer to Table 20-13. Eighty percent of all families have incomes below what level?

Table 20-1 The following table shows the distribution of income in Marysville. -Refer to Table 20-1. Seventy-five percent of all families have incomes above what level?

Marco earns more than Antonio. A legislator proposes taxing Marco to supplement Antonio's income. A libertarian would view this proposal as

Libertarians believe that

The poverty rate is based on a family's

A government policy aimed at protecting people against the risk of adverse events is called .

When we compare the income distribution of the United States to those of other countries, we find that the U.S. has

Scenario 20-8 Suppose the government implemented a negative income tax and used the following formula to compute a family's tax liability: Taxes owed = (1/4 of income) - $14,000 ​ ​ -Refer to Scenario 20-8. A family earning $40,000 before taxes will owe tax.​

Government vouchers to purchase food, also known as food stamps, are an example of