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