Exam 19: Economic Inequality

An increase in income equality causes the Lorenz curve to become more bowed away from the line of equality.

Income is distributed very unequally in ________ and very equally in ________.

-In the above table, which tax plan is progressive?

The income that measures a household's earnings in the absence of government redistribution is called

-In the figure above, the richest 40 percent of households receive ________ of total income.

Of the following, which is the most accurate indicator of the degree of inequality?

-In the figure above, the poorest 40 percent of households receive ________ of total income.

-In the figure above, the lowest 20 percent of all households own ________ percent of all wealth, the next lowest 20 percent own ________ percent of all wealth and the richest 20 percent own ________ percent of all wealth.

In the country of Wilkes, taxes are $5 million and benefits are $4 million. Income from labor is $25 million and income from capital is $15 million. What is market income?

-The first table above gives the average income received by each 20 percent group of households. Complete the second table. Label the axes above and then plot the Lorenz curve.

-In the figure above, the second poorest fifth of all households receive what share of all income?

-The figure above shows two Lorenz curves, one before income redistribution and one after income redistribution. Lorenz curve B represents

-In the figure above, the Lorenz curve that shows the richest 20 of households percent receiving 60 percent of all income is

-In the figure above, the poorest 40 percent of all households receive what share of income?

-The table above shows the distribution of income in Swacko. The government of Swacko imposes a 20 percent tax on the people with the highest 40 percent of income. The government then distributes 50 percent of the tax collected to the lowest 20 percent and 25 percent to the second 20 percent and the middle 20 percent. Suppose that the before-tax group incomes remain as above. Before and after the distribution, what percentage of national income belongs to the lowest 20 percent?

The U.S. government provides monthly payments to retired workers under which program?

In the United States, income is more equally distributed than measured wealth.

Market income is

Globalization has ________ the price of many goods, which has caused the value marginal product of unskilled labor to ________ and the demand for unskilled labor to ________.

A regressive income tax is defined as a tax for which