Exam 19: Economic Inequality

-The table above shows the demand for labor and supply of labor schedules for low-skilled labor. If the labor market is competitive, what is the wage rate of low-skilled labor and what is the quantity of low-skilled labor employed?

If Bianca earns 5 percent on her wealth and that income amounts to $40,000, what is Bianca's wealth?

-The above table shows the distribution of wealth and income in Miseria. The Lorenz curve for wealth would

From left to right, the horizontal axis of the Lorenz curve ranks households from

Using the government as a means of redistribution generates equity at the cost of efficiency, in part because

With respect to redistribution, one reason "The Big Tradeoff" exists is because

-The above figure shows the supply and demand curves for high-skilled and low-skilled labor. High-skilled workers earn a wage rate of

State colleges are an example of

-The above figure shows the Lorenz curves for four different countries. Which of the following statements CANNOT be made on the basis of the graph?

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

How has income inequality changed in recent years? What factors account for the changes?

The demand curve for high-skilled workers lies to the right of the demand curve for low-skilled workers because of the costs associated with obtaining skills.

-The above table shows the distribution of income in two imaginary countries, Alpha and Beta. a) What does the table tell you about the second 20 percent group in each country? b) Calculate the cumulative percentage for both countries. c) Interpret the cumulative percentage for the third 20 percent group in both countries.

When a group is discriminated against, its

What effect does the age of a household have when estimating the degree of inequality in income among households?

Which household characteristic has the largest effect on household income distribution?

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

The Lithuanian tax rate for all citizens' income is 24 percent. If the Lithuanian government was concerned about income inequality, they should change the tax system from a system that is currently ________ to a system that is ________.

Which is distributed more equally: income or wealth?

Of the following, which is the most accurate indicator of the degree of inequality?