Exam 18: Income Distribution and Poverty

The theory of distributional justice was developed by

Recent data suggests that the percentage of the population in poverty for African-American persons is significantly lower than that of Hispanic persons.

A ________ income tax means that those with a higher income pay the same percentage of their income in taxes as low-income people.

Recall the Economics in Practice on page 371: According to a study discussed in the Economics in Practice, when students were moved from a class taught by a below-average teacher to one at the 75th percentile, the move

In the Social Security system, the tax receipts from today's workers are

From 1989 to 2013, the share of wealth for the top 3% of wealth holders in the United States

Upon graduation, Ellie had two job offers. The jobs were identical in every way with two exceptions. One job was located in San Diego, CA and offered an annual salary of $50,000. The other job was located in Omaha, NE and offered an annual salary of $60,000. The salary difference is due to

Refer to the information provided in Figure 18.1 below to answer the question(s) that follow. Figure 18.1 -Refer to Figure 18.1. Suppose that the Lorenz curve were the same as the 45-degree line OB. This would mean that

The overall poverty rate in 2013 was just slightly less than it was in 1966.

Unemployment compensation is a ________ government transfer program.

A perfectly equal distribution of income would result in a Gini coefficient of 1.

As income becomes more equally distributed, the Lorenz curve ________ and ________.

When measuring income for the purpose of classifying people as poor, the measurement of income used is

Evidence suggests that in the last several decades, technology has played a role in driving inequality. Thus, ________ may be key to reducing inequality in the future.

The Earned Income Tax Credit is available to all taxpayers, regardless of income level.

Refer to the information provided in Figure 18.1 below to answer the question(s) that follow. Figure 18.1 -Refer to Figure 18.1. Suppose that the Lorenz curve ran along the horizontal axis to 100% of families, then became vertical to 100% of income. This would mean that

States pay for 50 percent of the administrative costs of the Supplemental Nutrition Assistance Program.

In the United States, most people's ________ comes from saving.

The first minimum wage law was adopted

In theory, a minimum wage should lead to unemployment, but there is no evidence of such an effect.