Exam 15: The Distribution of Income and Poverty

In country A the income shares (in percent)received by the lowest fifth of income groups to the highest fifth of income groups is, respectively, 10, 15, 20, 25, and 30. In country B the income shares (in percent)received by the lowest fifth of income groups to the highest fifth of income groups is, respectively, 5, 12, 20, 25 and 38. It follows that the

The Gini coefficient is computed by dividing the area

A person's labor income is equal to the __________ times __________. The return on savings that a person receives is referred to as __________.

Differences in income within an economy result from differences in all of the following except

The Lorenz curve for a country with perfect income equality is a horizontal line.

The practice of companies promoting from within is on the decline, possibly because of less regulated, increasingly competitive product markets.

The larger the Gini coefficient, the

Based on the income data presented for the U.S. (in your text)the Gini coefficient was around 0.45 in 2007, which is higher than it was in 1947.

The Lorenz curve is a graphical representation of

A Gini coefficient of 2,

If a person's asset income rises and his or her transfer payments (received)decline, it follows that that person's

It is not possible for everyone to be better off (in absolute terms)if the income distribution has become more unequal.

One way to reduce the degree of income inequality is to

Exhibit 28-2 ​ Refer to Exhibit 28-2.  This graph depicts the Lorenz curve for two countries, country 1 (Lorenz curve 1)and country 2 (Lorenz curve 2).  The Gini coefficient associated with Lorenz curve 1 appears to be ____________ than the Gini coefficient associated with Lorenz curve 2.  This information indicates that the income distribution is ______________ equal in country 2 than in country 1.

Which of the following statements is false ?

An individual's income equals

In order to make the income distribution more equal, the federal government could

Which of the following statements is true?

The Gini coefficient is a number between

A winner-take-all market