Exam 19: Economic Inequality

State colleges are an example of

The demand curve for low-skilled labor lies to the left of the demand curve for high-skilled labor because

Which of the following is a reason why the wage rate of high-skilled workers exceeds the wage rate of low-skilled workers?

The closer an income Lorenz curve is to the line of equality, the

-The table above shows the distribution of income in Swacko. The government of Swacko imposes a 20 percent tax on the people with the highest 40 percent of income. The government then distributes 50 percent of the tax collected to the lowest 20 percent and 25 percent to the second 20 percent and the middle 20 percent. Suppose that the before-tax group incomes remain as above. Before and after the distribution, what percentage of national income belongs to the lowest 20 percent?

The Gini ratio in Brazil was over 0.6 in 1990 and fell to 0.5 in 2010. This change means that over this time inequality ________ and the Lorenz curve moved ________ the 45 degree line.

In the United States, the wealthiest 20 percent of households own about ________ of total wealth.

High-skilled workers earn more than low-skilled workers in part because

-The above figure shows the Lorenz curve for wealth for the nation of Rusha. The wealthiest forty percent of the population own what percent of wealth?

-In the above figure, the Lorenz curve for income is shown. If the data used are from the United States, and the U.S. Lorenz curve for wealth was added to the diagram, it would be

-In the figure above, in which country do the lowest-income 30 percent of households have the highest fraction of the nation's income?

Welding has changed dramatically over the last decade with more welding jobs dependent on the use of computers. This change increased the demand for welders with computer skills and decreased the demand for welders who lack these skills and is an example of when technology is a ________ to a high-skilled job and a ________ to a low-skilled job.

-In the figure above, line A represents the

A flat-rate income tax is also called

Which household characteristic has the largest effect on household income distribution?

-The figure above shows two Lorenz curves, one before income redistribution and one after income redistribution. The difference between the two curves equals

If a Lorenz curve for income moves rightward and becomes more bowed out over time, then

Alice, Bob, and Cody live in Wesland. Their annual incomes and the amounts they pay in income tax are shown in the table below. The income tax in Wesland is

Taxes and transfers in the United States

-In the figure above, the Lorenz curve that shows the richest 20 of households percent receiving 60 percent of all income is