Exam 20: Income Inequality and Poverty

The distribution of income for Abbyville is as follows: Number of Families Income 300 less than $15,000 500 between $15,000 and $20,000 900 between $20,000 and $25,000 600 between $25,000 and $30,000 200 over $30,000 If the poverty rate in Abbyville is 12 percent, what is the poverty line in Abbyville?

Aniella believes that the demand for unskilled labor is relatively inelastic. Carmella believes that the demand for unskilled labor is relatively elastic. Which is an advocate of minimum-wage laws?

According to the doctrine of liberalism, principles of justice are the result of

Approximately what fraction of total income in the US economy comes from labor earnings?

The study by economists Cox and Alm found that the 2006 after-tax income of the richest fifth of U.S. households is

Which of the following is not correct?

In-kind transfers are transfers to the poor

Table 20-12 Income Inequality in 2010 in the United States by Race The values in the table reflect the percentages of pre-tax-and-transfer income. -In comparison to the average poverty rate,

Which of the following explains the rise in income inequality in the United States from 1970 to 2011?

An income distribution may not give an accurate picture of the standard of living for the poor because it does not include in-kind transfers.

The invisible hand of the marketplace acts to allocate resources efficiently, but it does not necessarily ensure that resources are allocated fairly.

When we examine historical data on income inequality in the U.S., we see that the distribution of income gradually became

Raising the welfare of the worst-off person in society is an important goal of which political philosophy?

Which of the following is not correct?

Caroline earns more than John. Under a new tax system, some of the taxes paid by Caroline would go to John. A libertarian would

Based on data from 2011, the top fifth of all families received approximately what percent of all income in the United States?

Which of the following statements is correct?

The poverty line in the country of Abbyville is $15,000. The distribution of income for Abbyville is as follows: Number of Families Income 300 less than $15,000 500 between $15,000 and $20,000 900 between $20,000 and $25,000 600 between $25,000 and $30,000 200 over $30,000 The poverty rate in Abbyville is

Suppose that young people often borrow and then repay the loans when they are older. These actions relate to which problem in measuring inequality?

Whether or not policymakers should try to make our society more egalitarian is largely a matter of