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1. In Economics, This number represents perfect equality. *
a. 0
b. 1
c. -10
d. 100
2. In Economics, This number represents perfect inequality. *
a. 0
b. 1
c. -10
d. 100
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- Which of the following is an example of a positive economic statement? a.The government should not be involved in the income redistribution schemes. b.The after-tax distribution of income is more equal than the pre-tax distribution of income. c.The distribution of income in the United States should be more equal. d.The tax system should be more progressive so that the after-tax distribution of income can be more equal.Draw the line of equality. 100- Draw a Lorenz curve for the distribution of income and label it. >>> Reposition the label by clicking on the edge of the label box and dragging it. 80- Draw a Lorenz curve for the distribution of wealth and. Label it. 60- 40- A household's point in time. A household's is the value of the things that it owns at a 20- is the amount that the household receives over a given period of time. C OA. wealth; income B. estate; revenue OC. estate; salary OD. fortune; revenue Cumulative percentage of income and wealth 0+ 0 20 40 60 80 100 Cumulative percentage of households (100,0) >>> Draw only the objects specified in the question.19. Define income inequality. O Getting paid below minimum wage. O Not getting a paycheck for months. O Having bad interactions with your boss at work. The idea that women and minorities can do the same work but get paid less/ less opportunity.
- Using the diagram above, which of the following is true? a. In country S the poorest 30 percent of the population receive 13 percent of the available income in country S. b. In country T the richest 10 percent of the population receive 23 percent of the available income in country T. c. In country S the richest 10 percent of the population receive 55 percent of the available income in country S. d. Country S has a more equal distribution of income than does country T. e. None of the above is true.What does government now do, and what could and should government do, to reduce economic inequality? Discuss the impact of government on economic inequality and how it has changed over time. What are your top three suggestions for specific programs or policies which governments could adopt to change the level and trend of inequality? Why?TRUE or FALSE 51. Perfect inequality in the distribution of income can be exhibited in reality. 52. Holding all other incomes constant, if we transfer some income from a richer person to a poorer person, the resulting new income distribution is more unequal. 53. There is absolute poverty below the international poverty line. 54. Modern sector enlargement assures a better Lorenz Curve for a nation. 55. The average poverty gap measures the sum of the differences in the income of each person from the absolute poverty line. 56. The multidimensional poverty index gives equal weight to all eight indicators. 57. The normalized income shortfall is a measure of income inequality. d income inequality is thoroughly planned, implemented, and monitored, a nation is secured of achieving economic development. 59. The GINI Coefficient relates the Lorenz Curve and the line of perfect quality of percentage of income and…
- 1. An economy's Lorenz Curve reveals that an economy's highest income quintile has 65% of the economy's income while the lowest income quintile only has 5% of the economy's income. Solely based on the Lorenz Curve, is this distribution of income fair? Why or why not? 2. To combat income inequality and to generate increased tax revenues to fund expenditures, government officials decide to aggressively increase how progressive income taxes are, so much so that the top income earners are marginally taxed 90% of their income (and while this marginal tax rate may seem oppressive, these top income earners still have more than enough income to satisfy all of their needs and all but the most extravagant of wants - basically, these earners have more than enough money). Argue why this tax policy is a fair approach to fund government expenditures. Why might this tax policy fail to achieve its objectives (tax revenues would actually decline as a result)?3. Why is income and wealth inequality a threat to the future of democracy and economies around the world? What are the main factors that have caused inequality to increase over the last few decades? What policies would you suggest to reduce inequality?38
- From comparisons of income distribution studies over time, it generally appears that A. income is more evenly distributed in the richer nations. B. there are few variations in income distribution among developed and developing nations. C. comparisons over time demonstrate that income redistribution changes relatively quickly, so older data have limited value. D. the middle quintiles in most nations are growing at the expense of the bottom 20 percent. E. income inequality decreases in the early stages of development and reverses in the later stages.7. Which of the following interventions will address the concern on poverty and unequal distribution of income? a. Free Tuition and Matriculation in all levels. b. Free and accessible health services for all. c. Free housing for the urban poor. d. All of the above.K In recent years, as the gap between the rich and the poor has increased, the Lorenz curve has O A. shifted away from the line of equality OB. shifted closer to the line of equality O c. not changed, but there has been a movement down along it O D. not changed, but there has been a movement up along it Ne
