In the context of intergenerational inequality, regression toward the mean is captured by which of the following? the tendency for the 90-50 wage gap to approach the 50-10 wage gap as a country experiences economic growth O the tendency for the tax code to erode inequality by targeting the mean tax rate to mean income નાવના)ના the tendency for income differences across families to get smaller over time as the various families move toward the mean income of the population O the tendency for inequality to be wider as a country experiences economic growth

In the context of intergenerational inequality, regression toward the mean is captured by which of the following? the tendency for the 90-50 wage gap to approach the 50-10 wage gap as a country experiences economic growth O the tendency for the tax code to erode inequality by targeting the mean tax rate to mean income નાવના)ના the tendency for income differences across families to get smaller over time as the various families move toward the mean income of the population O the tendency for inequality to be wider as a country experiences economic growth

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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As income transfer programs accompanying the War on Poverty increased beginning in the latter half of the 1960s, what happened to poverty in the United States? Check all that apply. After the start of the War on Poverty, the downward trend in the poverty rate halted. In 2018, the adjusted poverty rate was only 4 percentage points lower than the official rate in 1970. The poverty rate declined substantially in the period after the War on Poverty, but not in the period before the start of the War on Poverty. The adjusted poverty rate has declined rapidly and is now less than half of the official poverty rate.
oaxaca decomposition Suppose that, on average, men earn $20 an hour and have an average of 15 years of schooling. Women earn $15 an hour and have an average of 14 years of schooling. If the estimated return to schooling for men is 0.30 (implying that each additional year of schooling translates into an additional 30 cents per hour), then the gender gap in schooling explains: 20% of the wage gap between men and women More than 100% of the wage gap between men and women 15% of the wage gap between men and women None of the wage gap between men and women 6% of the wage gap between men and women
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Consider the following information: Suppose the median annual earnings of white females are 28% lower than the median annual earnings of white males. This means that: Neither of the other conclusions can be drawn from this one statistic. There is no discrimination against females; females just do less-dangerous work than males. There is no discrimination against females; females just have less human capital than males.
A mother who does not work receives $18,000 in welfare benefits from the government. Suppose that she takes a full-time job paying only $18,000, but forcing her to forego the $18,000 in government benefits. The mother would have to work 50 hours to reach an income of $20,000. This scenario is an example of what type of poverty situation? Review the selections below and choose the one which best answers the question. Select the correct answer below: The poverty trap. The poverty line. The equilibrium wage ratio. O The imbalance of employee wages.
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Consider the Lorenz curves for income for Deneb and Elnath as shown in this figure: Lorenz curves for Deneb and Elnath cumullative income share (%) 8 8 2 2 2 2 2 2 2 2 100 90 80 70 60 40 30 Lorenz curve for Elnath 0 0 10 20 30 40 50 60 70 80 90 100 income percentiles Lorenz curve for Deneb [If the image above doesn't appear click here to open it in a new tab.] Which of the following statements is true? [Hint: You do not need to calculate any areas to answer this question correctly!] The relative income inequalities of Deneb and Elnath cannot be determined from the information given. Income inequality is more extreme in Deneb than it is in Elnath. Deneb and Elnath have the same degree of income inequality. Income inequality is more extreme in Elnath than it is in Deneb.
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The following table summarizes the income distribution for the town of Perkopia, which has a population of 10,000 people. Every individual within an income group earns the same income, and the total annual income in the economy is $500,000,000. Suppose that in 2010, the poverty income threshold, or poverty line, is set at an annual income of $42,350 for an individual. Year 2006 2010 2016 2020 Quintile Lowest Lowest Quintile Second Quintile 3.0 3.4 3.8 5.0 The data in the table suggest that there was Second Middle Fourth Highest Share of Total Income in Perkopia (Percent) Middle Quintile Fourth Quintile Highest Quintile 8.6 9.4 9.7 11.0 Share of Income in 2010 (Percent) 3.4 9.4 14.6 22.4 50.2 14.0 14.6 15.2 15.5 Complete the following table to help you determine the poverty line in Perkopia in 2010. To do this, begin by determining the total income of all individuals in each quintile, using the fact that total annual income in the economy is $500,000,000. Next, determine the income of…
100 Cumulative Percentage of Income 80 8 8 8 L K Line of Perfect Income Equality Lorenz Curve 1 Lorenz Curve 2 20 40 60 80 100 Cumulative Percentage of Households 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). Although the Gini coefficient is in country 1 than in country 2, the bottom quintile in receives a larger share of income compared to the bottom quintile in O a. lower, country 2; country 1 O b. lower, country 1; country 2 Oc. higher, country 2; country 1 O d. higher, country 1; country 2
The values in the table reflect the percentages of pre-tax-and transfer income. 22. Refer to Table 20-1. The trend in income inequality from 1980 to 2010 is 23. Refer to Table 20-1. If the distribution of income were completely equal, what percentage of income would the bottom fifth of the population earn? 24. A government policy aimed at protecting people against the risk of adverse events is called