Econ202 Chp19

Income is measured as

A flow only

If income is distributed equally, the A) Gini coefficient is greater than zero. B) Lorenz curve sags below the line of equality. C) Lorenz curve is a straight line. D) Line of equality sags below the Lorenz curve.

C) Lorenz curve is a straight line

Medicare is an example of

In-kind income

A graphic illustration of the cumulative size distribution of income is known as the

Lorenz curve

The argument against greater equality in the distribution of income in the United States hinges basically on

Loss of incentives

The federal income tax is designed to

Shift the Lorenz curve inward

Wealth refers to

The market value of assets people own

Personal income is

The income received by households before payment of personal taxes

Market failure exists whenever

The market generates a suboptimal outcome of income distribution