Exam 20: Income Inequality and Poverty

Assume you are a critic of welfare reforms that impose a time limit on the number of years a person is eligible for welfare benefits. What is the foundation of your critique?

Table 20-5 Distribution of Income in Umakastan -Refer to Table 20-5. Where would the government of Umakastan have to set the poverty line to have a poverty rate of about 28%?

The only qualification to receive government assistance under a negative income tax is

Based on U.S. data for 2011, the poverty rate is the highest for which group of people?

Over the past 50 years, the U.S. poverty rate was at its lowest level in

About four out of five millionaires in the United States earned their money rather than inherited it.

The poverty rate is the percentage of the population whose family income falls below an absolute level called the .

Figure 20-3 -Refer to Figure 20-3. In 2011, the percent of children under age 18 in poverty is

Which of the following is not a question that economists try to answer when measuring the distribution of income?

Suppose the government used the following formula to compute a family's tax liability: Taxes owed = 28% of income - $8,000. How much would a family that earned $18,000 owe?

When incentives to earn income are distorted by income redistribution programs,

Since 1970, has the distribution of income in the US become more equal, less equal, or remained unchanged?

In the United States approximately 80 percent of millionaires did not inherit their wealth. This illustrates the

The United States has a more unequal income distribution than many other developed countries such as Japan and Germany.

A commonly-used gauge of poverty is the

The poverty rate is based on a family's

In 2011, the poverty rate in the United States was

Would the maximin criterion achieve perfect income equality?

Which of the following is not a finding of Cox and Alm regarding the gap between rich and poor?

Liberalism is founded on a premise that behind a "veil of ignorance,"