Exam 20: Economic Inequality

The figure above shows Lorenz curves for a nation. -Based on the figure above, which of the following can cause a movement from point C to point D on the Lorenz curve for income?

What do the Lorenz curves for wealth and income in the United States look like? Which is closer to the line of equality?

Looking at wage differentials between white women and white men in the United States since 2000, we see that the amount of the difference

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.

How does the demand for high-skilled workers compare to the demand for low-skilled workers? Why does this difference exist?

A ________ tax is one that taxes income at an average rate that decreases with the level of income.

If the income distribution is more unequal than the wealth distribution, then the

One reason why economists earn more than Taco Bell workers is because economists have a ________ value of marginal product of labor than Taco Bell workers.

Lorenz curves are

Since 1970 in the United States, the distribution of income has changed and the group that benefited the most has been the

What is a Lorenz curve?

A government redistribution of income program is proposed with the aim of making the income distribution the same as the 45° line in a Lorenz curve diagram.What implications does the idea of the "big tradeoff" have for the program?

Which of the following is a way income is redistributed in the United States? I∙subsidizing services Ii∙income taxes Iii∙income maintenance programs

-In the United States, it is the case that

The three main ways that governments in the United States redistribute income are