Exam 54: Income Distribution, Poverty and Government Policy

The figure given below shows the Lorenz curves of two countries (Country A and Country B). Figure 33.2 Total income (cumulative percentage) Total population (cumuative percentage) In Figure 33.2, the richest 20 percent of the population in Country B receive:

The allocations of goods and services from one group in a society to another are called:

Experiences of Russia and China prove that, greater the governmental intervention in the market, more equal will be the income distribution in the economy.

If for each dollar earned, $0.50 is taken out of the transfer received by a family of four, the negative income tax rate is 50 percent.

The world Lorenz curve coincides with the line of income equality because the average income of the different countries are more or less equal.

According to the Bureau of Labor Statistics, the distribution of consumption expenditures had a HiLo ratio of 3.8 in 2008 in contrast to the income ratio of 14.1.What can be inferred from the above statement?

The figure given below shows the Lorenz curves of two countries (Country A and Country B). Figure 33.2 Total income (cumulative percentage) Total population (cumuative percentage) In Figure 33.2, the poorest 60 percent of the population in Country B receive:

Unemployment insurance programs provide benefits to permanently unemployed people.

In Country X, the highest 10 percent of families account for 70 percent of income.In Country Y, the highest 10 percent of families account for 20 percent of income.In this example:

The main transfer programs of the U.S.government include each of the following, except:

Someone who has the desire to work but has no exceptional abilities and has not acquired the skills necessary for a well-paying job is likely to escape poverty completely.

The higher the HiLo ratio, the more the top income quintile earns relative to the bottom quintile.

A negative income tax implies that:

At the break-even income level:

Gini co-efficient is the:

A proportional tax is a tax whose rate increases as the tax base widens.

The figure given below shows the Lorenz curves of two countries (Country A and Country B). Figure 33.2 Total income (cumulative percentage) Total population (cumuative percentage) Refer to Figure 33.2.The richest 20 percent of the population in Country A receive:

It is often found that there is a sufficient mobility within the income distribution such that a person in the lowest quintile of income can move to the higher ones and vice versa.

If the Gini co-efficient for any economy is 0.85, which of the following statements is true?

The horizontal and vertical axes of the Lorenz curve respectively measure: