Exam 20: Income Inequality and Poverty.

Scenario 20-3 Suppose the government implemented a negative income tax and used the following formula to compute a family's tax liability: Taxes owed = (1/3 of income) - $15,000 -Refer to Scenario 20-3.A family earning $90,000 before taxes would have how much after-tax income?

Which of the following programs to alleviate poverty would be most favored by philosopher Robert Nozick?

The statement that "measures of the distribution of income are based on money income" relates to which problem in measuring inequality?

A family's ability to buy goods and services depends largely on its

The poverty line is based on the percentage of people who cannot afford an adequate diet.

Which political philosophy believes that the government should equalize the incomes of all members of society?

Which of the following is correct?

The study by economists Cox and Alm found

Libertarians believe that in considering economic fairness,one should primarily consider the

Table 20-3 The Distribution of Income in Hapland -Refer to Table 20-3.According to the table,what percent of families in Hapland have income levels above $60,000?

Diminishing marginal utility suggests that

The 2008 U.S.distribution of income shows that the top 20 percent of families have approximately what share of income?

Standard measurements of the degree of income inequality take both money income and in-kind transfers into account.

The poverty rate is the percentage of the population whose family income falls below the poverty line..

Assume that the government proposes a negative income tax that calculates the taxes owed as follows: Taxes Owed = (1/3 Income)- 10,000.A family that earns an income of $30,000 will

Figure 20-3 Panel A Source: U.S. Bureau of the Census Panel B Source: U.S. Bureau of the Census -Refer to Figure 20-3.Which of the following would be consistent with the data reported in Panel A?

The United States has a more equal income distribution than many developing economies such as Mexico,South Africa,and Brazil.

The founders of utilitarianism include

Scenario 20-2 Suppose the government implemented a negative income tax and used the following formula to compute a family's tax liability: Taxes owed = (1/4 of income) - $20,000 -Refer to Scenario 20-2.Below what level of income would families start to receive a subsidy from this negative income tax?

Table 20-5 *A Gini coefficient is a commonly used measure of income inequality, with values between 0 and 1 (0 corresponds to perfect equality whereby everyone has exactly the same income, and 1 corresponds to perfect inequality where one person has all the income, while everyone else has zero income). Source: The World Bank -Refer to Table 20-5.Which of the following statements is correct?