Exam 19: Economic Inequality

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

What do the Lorenz curves for wealth and income in the United States look like? Which is closer to the line of equality?

As a tool that is used to measure inequality in the distribution of income, the Lorenz curve graphs

-In the above table, which tax plan is regressive?

If a tax was instituted such that every dollar collected in taxes from high income households resulted in a distribution of $.80 to low income households

The Lorenz curve graphs the

-The table above gives cumulative percent of income received by each 20 percent group of households. Label the axes in the figure above and then plot the Lorenz curves. In which nation is income more equally distributed?

Welding has changed dramatically over the last decade with more welding jobs dependent on the use of computers. Computers are a complement only for high-skilled welders, so as more welding companies buy computers the wages of high-skilled welders will ________ and the wages of low-skilled welders will ________.

Assortative mating results in

-In the figure above, the line of equality is

The 2010 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. The personal income tax system is

The U.S. tax system

The decrease in the incentive to work created by welfare payments programs

Market income is

-In the figure above, if income were distributed equally across all households, the richest 20 percent of households would receive ________ of total income.

Computers and laser scanners are ________ for low-skilled labor and ________ for high-skilled labor. The introduction of these technologies ________ the wage rate of high-skilled workers and ________ the wage rate of low-skilled workers.

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

In the United States, income is more equally distributed than measured wealth.

A worker pays a tax for Social Security at a constant rate up until a certain level of income is reached. Beyond that income level, no more Social Security tax is paid. The Social Security tax is an example of a

With respect to redistribution, one reason "The Big Tradeoff" exists is because