Chapter 19-20 Econ 1b
In-kind transfers tend to be
Are more target-efficient than cash
A mathematical summary of inequality based on the Lorenz curve is known as the
Gini coefficient
When a program is means-tested, it means that
It's is an in-kind program
A graphic illustration of the cumulative size distribution of income is known as the
Lorenz curve
If income is distributed equally, the
Lorenz curve is a straight line.
The argument against greater equality in the distribution of income in the United States hinges predominantly on
Loss of incentives
Which of the following programs is the second largest federal income transfer program
Medicare
To make a tax system more progressive, policy makers could
Raise marginal tax rates for higher incomes
One world view is titled "Bono say stupid " to pay Irish
Raised marginal tax rates on upper income earners
A tax system in which tax rates fall as incomes rise is
Regressive
If the percentage of income paid in taxes increases as income rises, then the tax system is
Regressive
The poverty gap is the
Shortfall between actual income and the poverty threshold
Which of the following programs is the largest federal income transfer income transfer program
Social Security
The size distribution of income
Tells how personal income is divided up among households or income classes
Which of the following is a progressive tax
The federal income tax
Personal income is
The income received by households before payment of personal taxes
Wealth refers to
The market value of assets people own.
In kind transfers are
The transfer of goods and services rather than cash
The official poverty index is based on
Family size and income
A flat tax
Is a single rate tax system
Which of the following is not an example of in kind incone
Unemployment benefits
Exemptions and deductions included in the tax laws
Are designed to encourage specific economic activities
Transfer payments are
payments that do not require a good or service in exchange.
If the area between the diagonal line of absolute equality and the Lorenz curve is greater for the United States than for Japan we can conclude that the
Distribution of income in Japan is less equal than in the United States
social insurance programs are
government programs intended to protect families against economic hardships Event conditional