Exam 19: Economic Inequality

Income is distributed ________ equally than wealth and the Lorenz curve for ________ lies closer to the line of equality.

If a Lorenz curve for income moves rightward and becomes more bowed out over time, then

-The Lorenz curve

With respect to market and nonmarket production, on average working women are ________ diversified than men and receive ________ pay as a result.

Economists who have compared the incomes of never-married men and women have found that with equal amounts of human capital, ________.

Of age, marital status, family size, education, and race, which is the single biggest factor affecting the household income distribution?

-The government in the country of Zappoo is trying to decide which tax plan to implement. The table above shows three alternative plans. If the government decides to implement a proportional income tax, it will implement tax plan ________.

If the area between the line of equality and the Lorenz curve is 1,000, the Gini ratio is

The table shows the distributions of market income and money income in the United States in 2007. -According to the table above, the money income distribution is ________ unequal than the market income distribution because ________ income reflects income redistribution through taxes and benefits.

If income is equally distributed, the Gini ratio is 1.

One possible reason the U.S. income distribution has become more unequal is

A progressive tax is a tax that taxes income so that the average tax rate increases with income.

Information technologies ________ the demand for low-skilled labor, increase the ________ high-skilled labor, lower the wage rate of ________ labor, and raise the wage rate of ________ labor.

-According to the 2007/2008 United Nations Human Development Report, the Gini ratio for Portugal is 38.5, Norway is 25.8, the United States is 40.8, and Russia is 39.9. Which of these four countries has the highest level of income equality?

-On the Lorenz curve graph, the area between the line of equality and the Lorenz curve is 2,500, and the entire area beneath the line of equality is 5,000. What does the Gini ratio equal?

Relative to the demand curve for low-skilled workers, the demand curve for high-skilled workers lies

In the United States, the percentage of households that have incomes below the mean income is

The Gini ratio is a measure of

-The above figure shows two Lorenz curves. Lorenz curve A shows the distribution of income and Lorenz curve B shows the distribution of wealth. Which statement below is CORRECT?

An income tax for which the average tax rate decreases with income is called a