Exam 18: The Distribution of Income

High-income households are increasingly likely to be families with two earners, according to the _____ factor, influencing the widening income inequality gap.

Bart, a low-income worker, is asked by his supervisor to work extra hours and earn an extra $125 a week. His taxes will increase by $30, and his government benefits will be reduced by $40. How much better off will Bart be with this extra income?

The United States has a slightly _____ poverty rate and _____ income inequality than other large, highly developed economies such as Germany and Japan.

Several studies show that over half the families in the bottom quintile during a given year move up to a higher quintile _____ years later.

A quintile is

_____ is the net value of all assets less any debts owed.

_____ is the amount of additional taxes that one pays from an additional dollar of income.

(Figure: Lorenz Curve) In the figure, the Lorenz curve representing the deviation from perfect income equality is:

(Figure: Lorenz Curve 0) In the figure, income inequality increases if area _____ gets _____.

The Lorenz curve is:

The earned income tax credit is a government:

The Gini coefficient is:

_____ is the percentage of the population with incomes that are below the poverty line.

The _____ poverty rate adjusts income for taxes and subsidies.

The highest quintile is the top ____% of households.

Since 1976, the share of income that goes to the top one percent of earners has risen dramatically. What two facts stand out when examining this group?

The _____ begins with the first dollar of earned income and increases with greater earnings until the maximum benefit is reached.

The _____ is a graphical presentation of the cumulative distribution of income or wealth.

Sally, a low-income worker, is asked by her supervisor to work extra hours and earn an extra $75 a week. Her taxes will increase by $10, and her government benefits will be reduced by $40. How much better off will Sally be with this extra income?

In 2016, the lowest quintile of households received _____% of income, and the highest quintile received _____% of income.