Exam 15: Income Inequality and Poverty

Which of the following is true?

The amount of additional earnings that must be paid explicitly in taxes or implicitly in the form of a reduction in income supplements is known as the

Which of the following programs is most clearly advantageous to those with lower levels of income?

A valid argument against redistributing income to achieve complete equality is that

Imagine two cities, Engelgrad and Legreeville, where the rich, middle, and poor income recipients in one city have annual incomes identical to their counterparts' incomes in the other city. In Engelgrad, the poorest families one year almost always end up as the richest families the next year and become middle-income families the year after that. In Legreeville, however, the poor remain poor and the rich remain rich. Which of the following is true about the two cities?

Which of the following best explains why so many persons with incomes below the poverty threshold income level work very little or not at all?

Why have the earnings of persons with less education (and skill) fallen relative to those with more education (and skill)?

When a person who receives welfare benefits earns income, those benefits are reduced as earned income rises. This is referred to as

When deciding whether to classify a family as in poverty, official figures

Which of the following limits the ability of the current system of transfer programs to increase the incomes of the able-bodied poor?

Figure 15-1 -As shown in Figure 15-1, the degree of unequal income distribution is measured by the area between the

When determining whether an income places a family or individual in poverty, the official poverty rate excludes

The Earned Income Tax Credit

Income mobility

Imagine two countries, Lebos and Egap, that have identical average annual incomes. In Lebos, the poorest families one year almost always end up as the richest families the next year and become middle-income families the year after that. In Egap, however, the poor remain poor and rich remain rich. Which of the following is true about the two countries?

Figure 15-1 -As shown in Figure 15-1, the distance between points B and D means that 60 percent of families earn less of total income than required for perfect equality.

Figure 15-3 -As shown in Figure 15-3, the perfect equality line is drawn between points

Data indicate that the large increase in government spending on income transfers that started with the War on Poverty during the latter half of the 1960s has resulted in

Over the past several decades, family incomes in the United States have

How do the high implicit marginal tax rates that often occur when transfer payments are inversely linked to earnings affect the incentive of poor people to work and earn?