Exam 19: Economic Inequality

Netflix, the online streaming service, has ________ in the labor market for computer software programmers.

-The above table shows the distribution of income in two imaginary countries, Alpha and Beta. a) In the figure above, draw the Lorenz curves for Alpha and Beta. b) Compare the distribution of income in Alpha with that in Beta. Which distribution is more unequal? c) What would be the distribution of income in a country with perfect income equality?

Money 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

-The above table shows the distribution of income and wealth in Miseria. What percent of income is earned by the richest twenty percent?

An example of an income maintenance program is

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

-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?

The more that Clayton earns, the higher is his average tax rate. Clayton faces a ________ income tax.

High skilled labor and information technology are ________ while low skilled labor and information technology are ________.

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.

An income tax in which the average tax rate increases with income is called a

-In the figure above, the poorest 40 percent of households receive ________ of total income.

Measured distributions of wealth that do NOT consider the role of human capital

The farther the Lorenz curve for income is from the line of equality, the more ________ is distributed.

Market income is

-In the figure above, the curve going through point A represents

-The above table shows the distribution of wealth and income in Miseria. With respect to income, the richest twenty percent of the population earn

Measured wealth is a less accurate indicator of economic inequality than is measured income because measured wealth excludes

-In the figure above, the lowest 20 percent of all households receive ________ percent of all income, the next lowest 20 percent receive ________ percent of all income and the richest 20 percent receive ________ percent of all income.