Exam 19: Economic Inequality

Which of the following REDUCES equality of income or wealth relative to the market distribution?

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

Since 1970, the U.S. Gini ratio has

-In the figure above, the quantity of low-skilled labor employed is

In recent years, average household income in the United States was highest for households headed by someone aged

Information technologies are a ________ for low-skilled labor and a ________ for high-skilled labor.

-The above figure shows the Lorenz curves for four different countries. In which country is income most equally distributed?

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

The public education system is an example of

-The "big tradeoff" refers to the tradeoff between

If income is equally distributed, the Gini ratio is zero.

The federal income tax in the United States is

-The figure shows two Lorenz curves. Suppose both Lorenz curves measure income. Lorenz curve A shows ________ Lorenz curve B.

-Using the table provided above to construct Lorenz curves representing 1990 and 2011, what do you discover and how is this interpreted?

The biggest single factor affecting household income is the householder's age.

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

Unemployment compensation is an example of

Wealth differs from income in that

Describe the effect education and training have on outcomes in the labor market.

-The above figure shows the Lorenz curves for four different countries. If country C implemented a policy of redistribution from rich to poor, its Lorenz curve would