Exam 20: Income Inequality and Poverty.

"The government should punish crimes and enforce voluntary agreements but not redistribute income." This statement is most closely associated with which political philosophy?

Critics argue that a disadvantage of minimum-wage laws is that they do not effectively target the working poor because many minimum-wage workers are the teenage children of middle-income families.

On average,the distribution of income tends to be

Table 20-7 -Refer to Table 20-7.Which of the following is the best overall conclusion to draw from the data?

A commonly-used gauge of poverty is the

A goal of libertarians is to provide citizens with equal opportunities rather than to ensure equal outcomes.

In the United States,a typical worker's income peaks around age

Caroline earns more than John.Under a new tax system,some of the taxes paid by Caroline would go to John.A libertarian would

Economists study poverty and income inequality in order to answer which of the following questions?

Since about 1970 in the U.S.,

For a typical worker,her income will be lower when she is younger,peak around age 50,and decrease drastically when she retires.This pattern of changes in income for a typical worker is called

The 2008 U.S.distribution of income shows that the top fifth of all families have

Poverty is found to be correlated with

Table 20-8 Source: U.S. Bureau of Census -Refer to Table 20-8.In 2008,the top fifth of families has

Suppose that young people often borrow and then repay the loans when they are older.These actions relate to which problem in measuring inequality?

Despite continued growth in average income since the early 1970s,the poverty rate has not declined below the level reached in 1973.

The distribution of income for Grim is as follows: If the poverty rate in Grim is 17 percent,what is the poverty line in Grim?

Suppose that a family saves and borrows to buffer itself against changes in income.These actions relate to which problem in measuring inequality?

The invisible hand of the marketplace acts to allocate resources

There is very little economic mobility in the United States,which means that once a family is poor,it is very likely to remain poor for at least a decade.