Exam 20: Economic Inequality

Suppose a government imposes the following tax rates on its citizens. Income Tax Rate below \ 20,000 5\% \ 20,001-\ 40,000 3\% above \ 40,000 2\% The government has imposed a ________ tax system because the tax rate ________ with the level of income.

In the United States,the richest 20 percent of households receive approximately ________ percent of total money income.

What are three programs that redistribute income in the United States by making direct payments to people? Who benefits from each program?

What is "human capital" and why is it considered an investment?

Household percent age Percent of income Alpha Percent of income Beta Lowest 20 percent 5 3 Second 20 percent 10 6 Third 20 percent 20 12 Fourth 20 percent 30 24 Highest 20 percent 35 55 -The above table shows the distribution of income in two imaginary countries,Alpha and Beta. a.What does the table tell you about the second 20 percent group in each country? b.Calculate the cumulative percentage for both countries. c.Interpret the cumulative percentage for the third 20 percent group in both countries.

The figure above shows Lorenz curves for a nation -Based on the figure above,

Poverty for a household is defined as the state of

The demand curve for high-skilled workers lies ________ the demand curve for low-skilled workers and the supply curve of high-skilled workers lies ________ the supply curve of low-skilled workers.

Household percentage Percent of income Alpha Percent of income Beta Lowest 20 percent 9 5 Second 20 percent 10 5 Third 20 percent 12 10 Fourth 20 percent 29 20 Highest 20 percent 40 60 -The above table shows the distribution of income in two countries,Alpha and Beta.In Country Alpha,the poorest 20 percent receive ________ percent of total income.

Increased discrimination results in ________ of the workers discriminated against being hired and being paid ________ wage rates.

The figure above shows the demand and supply curves for high-skilled (indicated by an "H" subscript) and low-skilled (indicated by an "L" subscript) workers. -In the figure above,if the value of the marginal product of skill increased,then the

Lorenz curves are

Group Percent of income Poorest 20\% 5 Second poorest 20\% 10 Middle 20\% 15 Second richest 20\% 25 Richest 20\% 45 The table gives the distribution of income in Mise -What percent of income is earned by the poorest 60 percent of the population?

If a firm is willing to pay a high-skilled worker $25 per hour and a low-skilled worker $10 per hour then the value of marginal product of skill is

In the United States in 2010,the Census Bureau determined that approximately ________ million Americans lived in households that had incomes below the poverty line.

Comparing the wealth and income distribution in the United States,we see that

Discrimination by customers creates a wage differential between two groups by creating a difference in the two groups'

The gap between the salary of Tom Cruise and an unknown actor is over $15 million per movie.This difference means that Mr.Cruise's value of marginal product is

The vertical distance between the supply curves for neurosurgeons and the supply curve for fast-food servers

A regressive income tax is a tax for which the average tax rate