Principles of Economics, 7th Edition (MindTap Course List)
7th Edition
ISBN: 9781285165875
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Chapter 20, Problem 1PA
To determine
The reasons for the increase in the inequality in the US over the past 40 years.
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Part B: Briefly provide three reasons as to why income inequality is on the rise in Canada and the US. Secondly, briefly explain how our respective tax systems can help reduce income inequality (be specific about the type of tax you are referring to).
What are the causes, effects, and solutions of the rising income inequality in the United States?
"How can Income Inequality in the United States be Reduced?"
Chapter 20 Solutions
Principles of Economics, 7th Edition (MindTap Course List)
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- Explain how income inequality in the United States is measured and described.arrow_forwardActual Distribution of Wealth in the US Source: Adapted from the video "Wealth Inequality in America," 2012. Note: This document uses 2009 data. As of 2017, this inequality had only become greater. In this graph, the population of 300-plus million Americans is reduced to a representative group of 100 people. So, each person in this image represents 1% of the population. This group of 100 people has been lined up according to their wealth, poorest people on the left, wealthiest on the right. These 100 people have been shaded based on which 20% quintile they fall into. Then, the total wealth of the United States, which was roughly $54 trillion in 2009, was distributed among our 100 Americans. The poorest Americans don't even register, they are down to pocket change, and the middle class is barely distinguishable from the poor. 1% of America has 40% of all the nation's wealth, the bottom 80% only has 12% between them. The top 1% own half the country's, stocks, bonds and mutual funds. The…arrow_forwardWhat is the urban inequality rate compared to national inequality rate in Rio de Janeiro? Give a comparison of urban poverty and urban inequality rates in Rio.arrow_forward
- As coronavirus deepens inequality, inequality worsens its spread. Explain with comprehensive what the government can do to overcome or at least minimize the problems raised in the articlearrow_forwardbriefly describe income inequality in America,arrow_forwardWhich of the following statements about income inequality is true? a. A low average household income in a society suggests significant income inequality. b. A society with progressive income taxes will likely have a very unequal after-tax distribution of income. c. Low taxes on savings tend to lead to a more equitable distribution of after-tax income. d. Raising taxes on savings and providing subsidies to low-income households will lead to more equal after-tax and transfer incomes. e. Low tax rates on wealth will lead to less unequal income distributions.arrow_forward
- https://data.oecd.org/inequality/income-inequality.htmarrow_forwardWhich of the following are reasons why high income inequality may be inefficient? Check all that apply. 0 0 High inequality may lead to an overinvestment in higher education at the expense of primary education High inequality limits access to credit for a larger share of the population Redistribution through progressive tax systems creates work disincentives and limits investment. Savings rates for the very wealthy tend to be lower than in the middle class High inequality reflects differences in skills and effort by workersarrow_forwardPlease answer thanksarrow_forward
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