Exam 20: Economic Inequality

Which of the following is correct about the United States?

Skills are costly to acquire.What forms do these costs take? I9rnings while attending higher education

High-skilled workers earn more than low-skilled workers in part because the high-skilled workers have

The larger the value of marginal product of a skill, the

In the United States, the

The measured inequality of annual income ________ the actual inequality of lifetime income because ________.

With a negative income tax that has a $10,000 guaranteed income and a 25 percent tax rate, a household that has a market income of $4,000 has a total income of

Which of the following is(are)an example of an income maintenance program? I∙unemployment compensation Ii∙welfare programs Iii∙social security programs

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

The cost of acquiring a skill accounts for why the

In the United States, since 1970 the share of income received by the richest 20 percent of households has ________ and the share received by the other 80 percent of households has ________.

Social Security is a ________ program paid for by ________.

A tax is progressive if the average tax rate

Fully explain why it is a good idea for young people who are considering dropping out of high school to stay in school if the U.S.government pursues more liberal immigration policies over the next 20 years.

Workers who have invested in education and training

The table below shows the distribution of market income in an economy.The government redistributes income by collecting income taxes and paying benefits shown in the table. a∙Calculate the income shares of each 20 percent of households after tax and redistribution. b∙In the figure below, draw the Lorenz curves for this economy, both before and after taxes and benefits.

The factor that leads to the largest difference in households' incomes is

"Over the past two decades, the distribution of income in the United States has become more equal." Is the previous statement correct or incorrect? Briefly explain your answer.

In the United States in 2004, the wealthiest 1 percent of households held approximately ________ percent of all wealth.

Compared to low-skilled workers, high-skilled workers have a ________ value of marginal product and ________ opportunity cost of obtaining their skills.