Exam 19: Economic Inequality

Use the information below to answer the following questions. Fact 19.4.1 Income Gap Growing In 2009, people in the highest quintile had 24.6 times as much market income as those in the lowest quintile, but after taxes and transfers the people in the highest quintile had 9.1 times as much income as those in the lowest quintile. In 1989, the people in the highest quintile had 7.2 times more income after taxes and transfers than those in the lowest quintile. In 1990, 82.9 percent of the unemployed received unemployment benefits. In 2009, 47.8 percent of the unemployed received unemployment benefits. Source: Conference Board of Canada, July 13, 2011 -Refer to Fact 19.4.1. Changes in employment insurance ________ the income gap between the richest and the poorest Canadians.

If each household made the same amount of income, then the Lorenz curve would be

The demand for low-skilled labour is derived from the

Economic efficiency and economic equity have what relationship?

Other things remaining the same, if education costs rise substantially, we would expect to see

The income distribution in Canada is

The three main avenues through which the government redistributes income are

In 2011, the 20 percent of households with the highest incomes received what percentage of the total after-tax income?

Redistribution of income from the rich to the poor will lead to a reduction in total output. This is known as the

Last year you earned $45,000 and paid $9,000 in income taxes. This year you earned $60,000 and paid $15,000 in income taxes. What type of income tax do you face?

The closer the Lorenz curve is to the line of equality,

In Canada, the highest income tax rates are in

In 2011, the mode income received by 6.0 percent of households in Canada was between

Use the figure below to answer the following questions. Figure 19.1.3 -In Figure 19.1.3, the middle 20 percent of all families receive what share of income?

Wealth differs from income because

Use the figure below to answer the following questions. Figure 19.3.5 -Refer to Figure 19.3.5. This figure shows the labour supply curves and the value of marginal product curves for high-skilled and low-skilled workers. If the labour markets are competitive, then for a 40-hour work week, high-skilled workers must be paid

The wealthiest 10 percent of Canadian families own approximately

Use the figure below to answer the following questions. Figure 19.1.2 -The vertical distance between the two supply curves in Figure 19.3.1

Use the figure below to answer the following questions. Figure 19.1.3 -In Figure 19.1.3, the richest 20 percent of all families receive what share of all income?

In 2011, the median household income in Canada was