Exam 23: Income Inequality, Poverty, and Discrimination

An employer (biased against African Americans)whose discrimination coefficient is $5 will hire only whites if the actual African-American-white wage gap is $7.

Refer to the figure, which shows four different Lorenz curves (I, II, III, and IV). What point indicates that the lower 60 percent of the households receive only 40 percent of the nation's total income?

Which of the following would be evidence of an increase in income inequality over time in the United States?

The earned-income tax credit

The percentage of total before-tax household income received by the lowest 20 percent of households in 2017 was about ____ percent, while the top 20 percent received about ___ percent.

People's incomes are relatively low when they are young, reach a peak in middle age, and then decline. This fact helps explain

The basic reason why the debate between income equality versus inequality is ongoing is because there is a trade-off between income equality and economic efficiency.

A Lorenz curve is a graph that shows

Refer to the diagram, where curves (a)through (e)are for five different countries. The Gini ratio is

"Redistributing income in order to have a more equal distribution in the United States would result in a higher level of total consumer satisfaction." This statement is based on the concept that

What is the major argument in the case for income equality?

In 2017, the portion of the U.S. population that lived in poverty was

Assumptions: (1)the labor force comprises 9 million men and 9 million women workers; (2)the economy has 3 occupations, X, Y, and Z, each having identical demand curves for labor; (3)male and female workers are homogeneous with respect to their labor-market capabilities; (4)women are discriminated against by being excluded from occupations X and Y and are confined to Z; and (5)aside from discrimination, the economy is competitive, and workers seek to maximize their earnings.Refer to the diagram and list of assumptions. The elimination of gender discrimination

Insurance companies require male drivers under age 25 to pay higher insurance rates than female drivers under age 25. Craig Raymond, however, is a safer driver than the average female driver under age 25. Craig's higher insurance rate reflects

Refer to the table. What percentage of households made $50,000 or more?

Suppose the members of population A, consisting of Al, Bob, Curt, Doris, and Ellie, receive annual incomes of $5,000, $2,500, $1,250, $750, and $500, respectively. What percentage of total income is received by the highest quintile?

A progressive income tax would cause the after-tax Lorenz curve, compared with the before-tax Lorenz curve, to be

Which of the following is a public assistance or welfare program as opposed to a social insurance program?

Assumptions: (1)the labor force comprises 9 million men and 9 million women workers; (2)the economy has 3 occupations, X, Y, and Z, each having identical demand curves for labor; (3)male and female workers are homogeneous with respect to their labor-market capabilities; (4)women are discriminated against by being excluded from occupations X and Y and are confined to Z; and (5)aside from discrimination, the economy is competitive, and workers seek to maximize their earnings.Refer to the diagram and list of assumptions. With women confined to occupation Z and men free to choose occupations, how will this affect the wages paid?

The greater the area between the Lorenz curve and the diagonal in the Lorenz curve diagram, the