Exam 21: Income Inequity and Poverty

According to the maximin criterion, income can be transferred from the rich to the poor as long as it: (i) enhances the welfare of workers (ii) promotes an egalitarian distribution of income (iii) raises the wellbeing of the least fortunate

Robert Nozick criticises Rawls' concept of justice by using an example of:

The income distribution in a society is:

Economists refer to the regular pattern of income variation over a person's lifetime as the:

Over the past few years, growth in average income has:

For each figure below, describe whether it could reflect a possible distribution of income and if so, what is implied about the equality of income depicted.

When the government taxes income as part of a redistribution program:

Libertarianism identifies a role for government when:

Graph 21-1 -Refer to Graph 21-1. Advocates of minimum wage legislation would suggest that an effective minimum wage would be set at a level:

Suppose the government proposes a negative income tax that calculates taxes owed according to the formula TAXES OWED = (1/3 * INCOME) - 10 000. A family that earns an income of $60 000 will:

Which of the following is a cause of movement of individuals among income classes? (i) hard work (ii) laziness (iii) chance

Graph 21-1 -Refer to Graph 21-1. According to the graph, if the government imposes a minimum wage below W_o, it is likely to:

Discuss the permanent income hypothesis of income distribution.

Suppose the government proposes a negative income tax that calculates taxes owed according to the formula TAXES OWED = (1/3 * INCOME) - 10 000. A family that earns an income of $30 000 will:

Trends over time support the view that the decline of the two-parent family is largely the effect of the welfare system.

Brian earns more than Lynne. A benevolent legislator has proposed taxing Bill in order to supplement Lynne's income. A libertarian would view this proposal as:

Explain what is meant by 'in-kind transfer' programs. Briefly outline the pros and cons associated with an in-kind transfer program.

Explain what information is contained in the poverty rate statistic.

People have their highest saving rates when they are:

Income mobility studies suggest that poverty: