Ch. 19 HW Taxes: Equity vs. Efficiency

If the Gini coefficient is greater for the United Kingdom than for Japan, we can conclude that the

Distribution of income in the United Kingdom is less equal than in Japan.

If income is distributed equally, the

Lorenz curve is a straight line.

The size distribution of income in Figure 33.1 reveals that

Incomes are more equally distributed in Alpha than in Omega.

The federal income tax is designed to

Shift the Lorenz curve inward

Public housing is an example of

in-kind income

In-kind benefits are a way of correcting

inequity

Which of the following is an example of an explicit income transfer?

A Social Security pension paid to a retired factory worker.

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 closer to being equal than in the United States.

A mathematical summary of inequality based on the Lorenz curve is known as the

Gini coefficient.

In the United States between 2000 and 2015, the Gini coefficient

Increased, indicating greater income inequality.

In Figure 33.1, suppose that the Gini coefficient for Omega is 0.55. The Gini coefficient for Alpha must be

Less than 0.55.

If a greater portion of income is distributed to those in the highest income quintile, the

Lorenz curve sags below the diagonal line of absolute equality.

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 predominantly on

Loss of incentives.

In Omega the lowest 40 percent of families receive approximately what percentage of income? (See Figure 33.1)

10 percent.

In Alpha the lowest 20 percent of families receive approximately what percentage of income? (See Figure 33.1)

5 percent.

If the area between the diagonal line of absolute equality and the Lorenz curve is greater for China than for the United States, we can conclude that the

Distribution of income in China is less equal than in the United States.

Wealth refers to

The market value of assets people own.

How income is distributed is typically measured using

personal income.