Exam 19: Income Distribution,Poverty and Government Policy

It is often found that there is a sufficient mobility within the income distribution such that a person in the lowest quintile of income can move to the higher ones and vice versa.

In a market system,incomes are distributed according to the:

The poverty threshold is often determined in terms of the expenditure on meals that meet a predetermined nutritional standard.

Which of the following statements concerning income distribution among nations is true?

Economic stagnation and recession result in unemployment and poverty.

In Country X,the highest 10 percent of families account for 70 percent of income.In Country Y,the highest 10 percent of families account for 20 percent of income.In this example:

The greater the negative income tax imposed on a family,greater is the family's incentive to earn more.

The table given below shows the annual incomes of a family of four and the corresponding transfer incomes. Table 19.3 - Refer to Table 19.3.Suppose the family's annual earnings increases from $1,000 to $5,000.What is the resulting reduction in income transfer?

If everyone in an economy had equal income,the Lorenz curve would be a curve that intersects the line of income equality at the point at which 50 percent of the population earns 50 percent of the income.

A negative income tax implies that:

The programs which transfer income from the richer nations to the poorer nations are referred to as:

According to the Bureau of Labor Statistics,the distribution of consumption expenditures had a HiLo ratio of 3.8 in 2008 in contrast to the income ratio of 14.1.What can be inferred from the above statement?

The greater the value of the Gini co-efficient:

Consumer expenditures do not reflect the standard of people as efficiently as income inequality does.

The table below shows the distribution of income in the U.S.in the year 1978. Table 19.1 - If a Lorenz curve is drawn using the data in Table 19.1,it will: