Exam 20: Income Inequality and Poverty

Scenario 20-4 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 20-4. A family earning $40,000 before taxes will owe tax.

Figure 20-4 -Refer to Figure 20-4. If the government imposes a minimum wage above W₀, it is likely to

Table 20-8 Income Inequality in the United States The values in the table reflect the percentages of pre-tax-and transfer income. Source: US Census Bureau Year Bottom Fifth Second Fifth Middle Fifth Fourth Fifth Top Fifth Top 5\% 3.3\% 8.5\% 14.6\% 23.4\% 50.2\% 21.3\% 3.4 8.6 14.6 23.0 50.4 22.2 3.6 8.9 14.8 23.0 49.8 22.1 3.7 9.1 15.2 23.3 48.7 21.0 3.8 9.6 15.9 24.0 46.6 18.5 3.9 9.8 16.2 24.4 45.6 17.6 4.2 10.2 16.8 24.7 44.1 16.5 -Refer to Table 20-8. In 2010, what percentage of total income in the US did the bottom 20% of families have?

Based on data from 2017, the top quintile of all families received approximately what percent of all income in the United States?

In the United States in 2011, the bottom fifth of the income distribution had incomes below $27,218.

Which of the three political philosophies discussed in the textbook, if any, think the government should not take from some individuals and give to others to achieve any particular distribution of income?

Scenario 20-3 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) − $16,000 -Refer to Scenario 20-3. A family earning $46,000 before taxes would have how much after-tax income?

A government's policy of redistributing income makes the income distribution

With a minimum wage law, the workers who remain employed benefit from a .

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

Of the following groups, which group is most likely to live in poverty - children, elderly, married-couple families, female household with no spouse present?

The maximin criterion is the idea that the government should aim to maximize the well-being of the worst-off person in society.

Libertarians believe that the government should enforce individual rights to ensure that all people have the same opportunities to use their talents to achieve success.

One existing government program that works much like a negative income tax is Medicaid.