Quiz income

Public policies created by the government can attempt to build a ladder of opportunities so people are not just determined by their ________ by which they grew up.

circumstances

Government policies to reduce poverty or to encourage economic equality, if carried to extremes, can reduce ________for increased________.

incentives; economic output

A method often used by economists to look at the distribution of income in a society's economy involves

quintiles, or dividing a whole group into fifths.

The group of government programs that provide assistance to the poor and the near-poor is synonymous with which of the following?

safety net

What is the image below?

Lorenz Curve

Government anti-poverty programs whose benefits decline substantially as people earn more income can lead to ________.

a poverty trap

Which of the following is NOT a potential source of income inequality ________.

decreased demand for high-skilled workers

The government can limit the bite of the poverty trap by ________.

iimposing work requirements as a condition of receiving benefits

Suppose that incomes in the U.S. rise for low-income and high-income workers, but they rise more for the high-income earners. How will this change affect income inequality?

poverty falls;inequality rises

The ________ is the specific amount of income needed for a basic standard of living.

poverty line

If incomes rise for both low-income and high-income workers, but rise less for the high- income workers,

then poverty will fall and inequality will fall.

Robert is a widower raising 5 year old twin boys. In 2013, after the plant where he had worked for 10 years shut down, he was able to obtain part-time work that paid him $13,000.00 a year. He receives the earned income tax credit. If Robert receives a raise, so that he will earn $16,350, the earned income credit will be

will not be reduced.