Distribution of income in United States.

Question

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Answer 1

Question

Chapter 28, Problem 1CQ

To determine

Distribution of income in United States.

Expert Solution & Answer

Explanation of Solution

Income inequality is the unequal distribution of income or wages across various participants in an economy. During 2014, the families of lowest fifth category earned about 3.6 percent of income share. The highest fifth families earned 48.9, which is more than 14 times of that lowest fifth. While considering the income share after tax and in-kind government transfer benefits, the highest fifth category earned about 7.4 times of the lowest fifth category. That means, the inequality in the income reduced. The difference in income may occurs when there is difference in education, skill, talent and so on, which cannot be considered as unfair distribution of income. On the other hand, difference in wage, profit and losses will determine the unfairness of income distribution. Thus, the process is important rather than outcomes, which determine the fairness of income distribution.

Economics Concept Introduction

Income inequality: Income inequality can be defined as the unequal distribution of income or wages across various participants in an economy.

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Answer 2

Question

Chapter 28, Problem 1CQ

To determine

Distribution of income in United States.

Expert Solution & Answer

Explanation of Solution

Income inequality is the unequal distribution of income or wages across various participants in an economy. During 2014, the families of lowest fifth category earned about 3.6 percent of income share. The highest fifth families earned 48.9, which is more than 14 times of that lowest fifth. While considering the income share after tax and in-kind government transfer benefits, the highest fifth category earned about 7.4 times of the lowest fifth category. That means, the inequality in the income reduced. The difference in income may occurs when there is difference in education, skill, talent and so on, which cannot be considered as unfair distribution of income. On the other hand, difference in wage, profit and losses will determine the unfairness of income distribution. Thus, the process is important rather than outcomes, which determine the fairness of income distribution.

Economics Concept Introduction

Income inequality: Income inequality can be defined as the unequal distribution of income or wages across various participants in an economy.

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

Answer 3

Question

Chapter 28, Problem 1CQ

To determine

Distribution of income in United States.

Expert Solution & Answer

Explanation of Solution

Income inequality is the unequal distribution of income or wages across various participants in an economy. During 2014, the families of lowest fifth category earned about 3.6 percent of income share. The highest fifth families earned 48.9, which is more than 14 times of that lowest fifth. While considering the income share after tax and in-kind government transfer benefits, the highest fifth category earned about 7.4 times of the lowest fifth category. That means, the inequality in the income reduced. The difference in income may occurs when there is difference in education, skill, talent and so on, which cannot be considered as unfair distribution of income. On the other hand, difference in wage, profit and losses will determine the unfairness of income distribution. Thus, the process is important rather than outcomes, which determine the fairness of income distribution.

Economics Concept Introduction

Income inequality: Income inequality can be defined as the unequal distribution of income or wages across various participants in an economy.

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

Answer 4

Question

Chapter 28, Problem 1CQ

To determine

Distribution of income in United States.

Expert Solution & Answer

Explanation of Solution

Income inequality is the unequal distribution of income or wages across various participants in an economy. During 2014, the families of lowest fifth category earned about 3.6 percent of income share. The highest fifth families earned 48.9, which is more than 14 times of that lowest fifth. While considering the income share after tax and in-kind government transfer benefits, the highest fifth category earned about 7.4 times of the lowest fifth category. That means, the inequality in the income reduced. The difference in income may occurs when there is difference in education, skill, talent and so on, which cannot be considered as unfair distribution of income. On the other hand, difference in wage, profit and losses will determine the unfairness of income distribution. Thus, the process is important rather than outcomes, which determine the fairness of income distribution.

Economics Concept Introduction

Income inequality: Income inequality can be defined as the unequal distribution of income or wages across various participants in an economy.

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

Chapter 28, Problem 1CQ

To determine

Distribution of income in United States.

Expert Solution & Answer

Explanation of Solution

Income inequality is the unequal distribution of income or wages across various participants in an economy. During 2014, the families of lowest fifth category earned about 3.6 percent of income share. The highest fifth families earned 48.9, which is more than 14 times of that lowest fifth. While considering the income share after tax and in-kind government transfer benefits, the highest fifth category earned about 7.4 times of the lowest fifth category. That means, the inequality in the income reduced. The difference in income may occurs when there is difference in education, skill, talent and so on, which cannot be considered as unfair distribution of income. On the other hand, difference in wage, profit and losses will determine the unfairness of income distribution. Thus, the process is important rather than outcomes, which determine the fairness of income distribution.

Economics Concept Introduction

Income inequality: Income inequality can be defined as the unequal distribution of income or wages across various participants in an economy.

Answer 6

Chapter 28, Problem 1CQ

To determine

Distribution of income in United States.

Expert Solution & Answer

Explanation of Solution

Income inequality is the unequal distribution of income or wages across various participants in an economy. During 2014, the families of lowest fifth category earned about 3.6 percent of income share. The highest fifth families earned 48.9, which is more than 14 times of that lowest fifth. While considering the income share after tax and in-kind government transfer benefits, the highest fifth category earned about 7.4 times of the lowest fifth category. That means, the inequality in the income reduced. The difference in income may occurs when there is difference in education, skill, talent and so on, which cannot be considered as unfair distribution of income. On the other hand, difference in wage, profit and losses will determine the unfairness of income distribution. Thus, the process is important rather than outcomes, which determine the fairness of income distribution.

Economics Concept Introduction

Income inequality: Income inequality can be defined as the unequal distribution of income or wages across various participants in an economy.

Answer 7

Chapter 28, Problem 1CQ

To determine

Distribution of income in United States.

Answer 8

Expert Solution & Answer

Explanation of Solution

Income inequality is the unequal distribution of income or wages across various participants in an economy. During 2014, the families of lowest fifth category earned about 3.6 percent of income share. The highest fifth families earned 48.9, which is more than 14 times of that lowest fifth. While considering the income share after tax and in-kind government transfer benefits, the highest fifth category earned about 7.4 times of the lowest fifth category. That means, the inequality in the income reduced. The difference in income may occurs when there is difference in education, skill, talent and so on, which cannot be considered as unfair distribution of income. On the other hand, difference in wage, profit and losses will determine the unfairness of income distribution. Thus, the process is important rather than outcomes, which determine the fairness of income distribution.