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