Describe how each of these changes is likely to affect poverty and inequality: Incomes rise for low-income and high-income workers, but rise more for the high-income earners. Incomes fall for low-income and high-income workers, but fall more for high-income earners.

Question

Want to see more full solutions like this?

Answer 1

Textbook Question

Chapter 15, Problem 1SCQ

Describe how each of these changes is likely to affect poverty and inequality:

Incomes rise for low-income and high-income workers, but rise more for the high-income earners.
Incomes fall for low-income and high-income workers, but fall more for high-income earners.

Expert Solution

To determine

(a)

To analyze:

The effect on poverty and inequality when the income rise for high-income and low-income workers but raise more for high-income earners.

Explanation of Solution

Income is influenced by demandand supply in labor markets, which can lead to very high income for some people and very low incomes for others. Poverty implies people who are unableto fulfil their basic needs of life.Income inequality is referred to the disparity between people with higher and lower incomes.

If income rise for both high-income and low-income workers but rise more for high-income earners then poverty will fall and inequality will rise, as people with high income will continue to earn more, thereby creating inequality in the economy. The level of people falling under the poverty line will increase.

In short, rich people will become richer and poor will become poorer.

Economics Concept Introduction

Poverty line : The number of peoplebelow a certain level of income, called the poverty line, are said to be poor and lack basic amenities in life.

Income Inequality: Income inequality is measured by dividing the population of an economy into various groups then comparing the groups based on their incomes i.e. high incomes, middle incomes and low incomes.

Expert Solution

To determine

(b)

To analyze:

Effect on poverty and inequality if incomes fall for high-income and low-income workers but fall more for high-income earners.

Explanation of Solution

Poverty implies people who are unableto fulfil their basic needs of life.Income inequality is referred to the disparity between people with higher and lower incomes.

If income falls for low-income and high-income workers, it will result in rise in poverty and fall in inequality.The income gap between different groups of people will reduce and so will inequality.

Economics Concept Introduction

Poverty line : The number of peoplebelow a certain level of income, called the poverty line, are said to be poor and lack basic amenities in life.

Income Inequality : Income inequality is measured by dividing the population of an economy into various groups then comparing the groups based on their incomes i.e. high incomes, middle incomes and low incomes.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

Please correct answer and don't used hand raiting and don't used Ai solution

not use ai please

Gates Doubles Down on Malaria Eradication The End Malaria Council, convened by Bill Gates and Ray Chambers, seeks to mobilize resources to prevent and treat malaria. The current level of financing is too low to end malaria. Bruno Moonen, deputy director for malaria at the Gates Foundation, says that more resources, more leadership, and new technologies are needed to eradicate malaria in the current generation. Is Bruno Moonen talking about production efficiency or allocative efficiency or both? Bruno Moonen is talking about _______. A. production efficiency but not allocative efficiency B. production efficiency and allocative efficiency C. allocative efficiency but not production efficiency D. neither production efficiency nor allocative efficiency

Answer 2

Textbook Question

Chapter 15, Problem 1SCQ

Describe how each of these changes is likely to affect poverty and inequality:

Incomes rise for low-income and high-income workers, but rise more for the high-income earners.
Incomes fall for low-income and high-income workers, but fall more for high-income earners.

Expert Solution

To determine

(a)

To analyze:

The effect on poverty and inequality when the income rise for high-income and low-income workers but raise more for high-income earners.

Explanation of Solution

Income is influenced by demandand supply in labor markets, which can lead to very high income for some people and very low incomes for others. Poverty implies people who are unableto fulfil their basic needs of life.Income inequality is referred to the disparity between people with higher and lower incomes.

If income rise for both high-income and low-income workers but rise more for high-income earners then poverty will fall and inequality will rise, as people with high income will continue to earn more, thereby creating inequality in the economy. The level of people falling under the poverty line will increase.

In short, rich people will become richer and poor will become poorer.

Economics Concept Introduction

Poverty line : The number of peoplebelow a certain level of income, called the poverty line, are said to be poor and lack basic amenities in life.

Income Inequality: Income inequality is measured by dividing the population of an economy into various groups then comparing the groups based on their incomes i.e. high incomes, middle incomes and low incomes.

Expert Solution

To determine

(b)

To analyze:

Effect on poverty and inequality if incomes fall for high-income and low-income workers but fall more for high-income earners.

Explanation of Solution

Poverty implies people who are unableto fulfil their basic needs of life.Income inequality is referred to the disparity between people with higher and lower incomes.

If income falls for low-income and high-income workers, it will result in rise in poverty and fall in inequality.The income gap between different groups of people will reduce and so will inequality.

Economics Concept Introduction

Poverty line : The number of peoplebelow a certain level of income, called the poverty line, are said to be poor and lack basic amenities in life.

Income Inequality : Income inequality is measured by dividing the population of an economy into various groups then comparing the groups based on their incomes i.e. high incomes, middle incomes and low incomes.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Textbook Question

Chapter 15, Problem 1SCQ

Describe how each of these changes is likely to affect poverty and inequality:

Incomes rise for low-income and high-income workers, but rise more for the high-income earners.
Incomes fall for low-income and high-income workers, but fall more for high-income earners.

Expert Solution

To determine

(a)

To analyze:

The effect on poverty and inequality when the income rise for high-income and low-income workers but raise more for high-income earners.

Explanation of Solution

Income is influenced by demandand supply in labor markets, which can lead to very high income for some people and very low incomes for others. Poverty implies people who are unableto fulfil their basic needs of life.Income inequality is referred to the disparity between people with higher and lower incomes.

If income rise for both high-income and low-income workers but rise more for high-income earners then poverty will fall and inequality will rise, as people with high income will continue to earn more, thereby creating inequality in the economy. The level of people falling under the poverty line will increase.

In short, rich people will become richer and poor will become poorer.

Economics Concept Introduction

Poverty line : The number of peoplebelow a certain level of income, called the poverty line, are said to be poor and lack basic amenities in life.

Income Inequality: Income inequality is measured by dividing the population of an economy into various groups then comparing the groups based on their incomes i.e. high incomes, middle incomes and low incomes.

Expert Solution

To determine

(b)

To analyze:

Effect on poverty and inequality if incomes fall for high-income and low-income workers but fall more for high-income earners.

Explanation of Solution

Poverty implies people who are unableto fulfil their basic needs of life.Income inequality is referred to the disparity between people with higher and lower incomes.

If income falls for low-income and high-income workers, it will result in rise in poverty and fall in inequality.The income gap between different groups of people will reduce and so will inequality.

Economics Concept Introduction

Poverty line : The number of peoplebelow a certain level of income, called the poverty line, are said to be poor and lack basic amenities in life.

Income Inequality : Income inequality is measured by dividing the population of an economy into various groups then comparing the groups based on their incomes i.e. high incomes, middle incomes and low incomes.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Textbook Question

Chapter 15, Problem 1SCQ

Describe how each of these changes is likely to affect poverty and inequality:

Incomes rise for low-income and high-income workers, but rise more for the high-income earners.
Incomes fall for low-income and high-income workers, but fall more for high-income earners.

Expert Solution

To determine

(a)

To analyze:

The effect on poverty and inequality when the income rise for high-income and low-income workers but raise more for high-income earners.

Explanation of Solution

Income is influenced by demandand supply in labor markets, which can lead to very high income for some people and very low incomes for others. Poverty implies people who are unableto fulfil their basic needs of life.Income inequality is referred to the disparity between people with higher and lower incomes.

If income rise for both high-income and low-income workers but rise more for high-income earners then poverty will fall and inequality will rise, as people with high income will continue to earn more, thereby creating inequality in the economy. The level of people falling under the poverty line will increase.

In short, rich people will become richer and poor will become poorer.

Economics Concept Introduction

Poverty line : The number of peoplebelow a certain level of income, called the poverty line, are said to be poor and lack basic amenities in life.

Income Inequality: Income inequality is measured by dividing the population of an economy into various groups then comparing the groups based on their incomes i.e. high incomes, middle incomes and low incomes.

Expert Solution

To determine

(b)

To analyze:

Effect on poverty and inequality if incomes fall for high-income and low-income workers but fall more for high-income earners.

Explanation of Solution

Poverty implies people who are unableto fulfil their basic needs of life.Income inequality is referred to the disparity between people with higher and lower incomes.

If income falls for low-income and high-income workers, it will result in rise in poverty and fall in inequality.The income gap between different groups of people will reduce and so will inequality.

Economics Concept Introduction

Poverty line : The number of peoplebelow a certain level of income, called the poverty line, are said to be poor and lack basic amenities in life.

Income Inequality : Income inequality is measured by dividing the population of an economy into various groups then comparing the groups based on their incomes i.e. high incomes, middle incomes and low incomes.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Textbook Question

Answer 6

Textbook Question

Answer 7

Expert Solution

To determine

(a)

To analyze:

The effect on poverty and inequality when the income rise for high-income and low-income workers but raise more for high-income earners.

Explanation of Solution

Income is influenced by demandand supply in labor markets, which can lead to very high income for some people and very low incomes for others. Poverty implies people who are unableto fulfil their basic needs of life.Income inequality is referred to the disparity between people with higher and lower incomes.

If income rise for both high-income and low-income workers but rise more for high-income earners then poverty will fall and inequality will rise, as people with high income will continue to earn more, thereby creating inequality in the economy. The level of people falling under the poverty line will increase.

In short, rich people will become richer and poor will become poorer.

Economics Concept Introduction

Poverty line : The number of peoplebelow a certain level of income, called the poverty line, are said to be poor and lack basic amenities in life.

Income Inequality: Income inequality is measured by dividing the population of an economy into various groups then comparing the groups based on their incomes i.e. high incomes, middle incomes and low incomes.

Expert Solution

To determine

(b)

To analyze:

Effect on poverty and inequality if incomes fall for high-income and low-income workers but fall more for high-income earners.

Explanation of Solution

Poverty implies people who are unableto fulfil their basic needs of life.Income inequality is referred to the disparity between people with higher and lower incomes.

If income falls for low-income and high-income workers, it will result in rise in poverty and fall in inequality.The income gap between different groups of people will reduce and so will inequality.

Economics Concept Introduction

Poverty line : The number of peoplebelow a certain level of income, called the poverty line, are said to be poor and lack basic amenities in life.

Income Inequality : Income inequality is measured by dividing the population of an economy into various groups then comparing the groups based on their incomes i.e. high incomes, middle incomes and low incomes.

Answer 8

Expert Solution

To determine

(a)

To analyze:

The effect on poverty and inequality when the income rise for high-income and low-income workers but raise more for high-income earners.

Explanation of Solution

Income is influenced by demandand supply in labor markets, which can lead to very high income for some people and very low incomes for others. Poverty implies people who are unableto fulfil their basic needs of life.Income inequality is referred to the disparity between people with higher and lower incomes.

If income rise for both high-income and low-income workers but rise more for high-income earners then poverty will fall and inequality will rise, as people with high income will continue to earn more, thereby creating inequality in the economy. The level of people falling under the poverty line will increase.

In short, rich people will become richer and poor will become poorer.

Economics Concept Introduction

Poverty line : The number of peoplebelow a certain level of income, called the poverty line, are said to be poor and lack basic amenities in life.

Income Inequality: Income inequality is measured by dividing the population of an economy into various groups then comparing the groups based on their incomes i.e. high incomes, middle incomes and low incomes.

Answer 9

Expert Solution

Answer 10

Expert Solution

Answer 11

Expert Solution

Answer 12

To determine

(a)

To analyze:

The effect on poverty and inequality when the income rise for high-income and low-income workers but raise more for high-income earners.

Answer 13

Explanation of Solution

Income is influenced by demandand supply in labor markets, which can lead to very high income for some people and very low incomes for others. Poverty implies people who are unableto fulfil their basic needs of life.Income inequality is referred to the disparity between people with higher and lower incomes.

If income rise for both high-income and low-income workers but rise more for high-income earners then poverty will fall and inequality will rise, as people with high income will continue to earn more, thereby creating inequality in the economy. The level of people falling under the poverty line will increase.

In short, rich people will become richer and poor will become poorer.

Answer 14

Economics Concept Introduction

Poverty line : The number of peoplebelow a certain level of income, called the poverty line, are said to be poor and lack basic amenities in life.

Income Inequality: Income inequality is measured by dividing the population of an economy into various groups then comparing the groups based on their incomes i.e. high incomes, middle incomes and low incomes.

Answer 15

Expert Solution

To determine

(b)

To analyze:

Effect on poverty and inequality if incomes fall for high-income and low-income workers but fall more for high-income earners.

Explanation of Solution

Poverty implies people who are unableto fulfil their basic needs of life.Income inequality is referred to the disparity between people with higher and lower incomes.

If income falls for low-income and high-income workers, it will result in rise in poverty and fall in inequality.The income gap between different groups of people will reduce and so will inequality.

Economics Concept Introduction

Poverty line : The number of peoplebelow a certain level of income, called the poverty line, are said to be poor and lack basic amenities in life.

Income Inequality : Income inequality is measured by dividing the population of an economy into various groups then comparing the groups based on their incomes i.e. high incomes, middle incomes and low incomes.

Answer 16

Expert Solution

Answer 17

Expert Solution

Answer 18

Expert Solution

Answer 19

To determine

(b)

To analyze:

Effect on poverty and inequality if incomes fall for high-income and low-income workers but fall more for high-income earners.

Answer 20

Explanation of Solution

Poverty implies people who are unableto fulfil their basic needs of life.Income inequality is referred to the disparity between people with higher and lower incomes.

If income falls for low-income and high-income workers, it will result in rise in poverty and fall in inequality.The income gap between different groups of people will reduce and so will inequality.

Answer 21

Economics Concept Introduction

Poverty line : The number of peoplebelow a certain level of income, called the poverty line, are said to be poor and lack basic amenities in life.

Income Inequality : Income inequality is measured by dividing the population of an economy into various groups then comparing the groups based on their incomes i.e. high incomes, middle incomes and low incomes.

Answer 22

Ch. 15 - Describe how each of these changes is likely to...Ch. 15 - Jonathan is a single father with one child. He can...Ch. 15 - Imagine that the government reworks the welfare...Ch. 15 - We have discovered that the welfare system...Ch. 15 - How does the TANF attempt to loosen the poverty...Ch. 15 - A group 0f 10 people have the following annual...Ch. 15 - Table 15.9 shows the share of income going to each...Ch. 15 - Using two demand and supply diagrams, one for the...Ch. 15 - Using two demand and supply diagrams, one for the...Ch. 15 - Here is one hypothesis: A well-funded social...

Describe how each of these changes is likely to affect poverty and inequality: Incomes rise for low-income and high-income workers, but rise more for the high-income earners. Incomes fall for low-income and high-income workers, but fall more for high-income earners.

Explanation of Solution

Explanation of Solution

Want to see more full solutions like this?

Chapter 15 Solutions

Additional Business Textbook Solutions