Exam 18: Income Distribution and Poverty

Disaggregating the distribution of income by race shows that the mean household income for the top 20% of African-American households was very similar to that of the top 20% of Hispanic households.

If economic income rather than money income were used to determine whether or not an individual is poor, the poverty rate would increase.

Refer to the information provided in Figure 18.1 below to answer the questions that follow. Figure 18.1 -Refer to Figure 18.1. At Point A the distribution of goods is

According to Karl Marx, the value of any product is dependent upon the labor, capital, and land inputs used in production.

If the marginal utility of income decreases as income increases, transferring income from the rich to the poor will

According to Karl Marx, property income is

The bottom 50% of families ranked by income control about ________ of the nation's net worth.

The Supplemental Security Income program is financed out of ________.

Counting the total number of individuals on any assistance program and dividing by the population determine the poverty line.

Refer to the information provided in Figure 18.4 below to answer the questions that follow. Figure 18.4 -Refer to Figure 18.4. The wealthiest fifth of families earned ________% of income in Outland.

The Gini coefficient is ________.

Philosophical issues regarding income redistribution deal with all of the following EXCEPT:

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

Unemployment compensation is a ________ government transfer program.

In the summer of 2009, the United States federal minimum wage was raised to $7.25. According to theory, what will likely be the result of the increase?

According to utilitarian justice, the redistribution of income from the rich to the poor causes

The argument most often used in favor of redistribution is that a society as wealthy as the United States has a moral obligation to provide all its members with the basic necessities of life.

Relating to the Economics in Practice on page 374: Considerable evidence suggests that recently in the United States, executive compensation has ________ and the real wage of the average worker has ________.

For the bottom 10% of families in the income distribution, transfer payments account for approximately ________ of income.

Karl Marx saw profits as