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Which of the following studies would NOT offer a useful understanding of inequality?

A study of the highest family income across countries

How do you find the distribution of income?

Find how much people in each equal-sized income group receive as a share of total income.

_____ measures poverty relative to the material living standards of your contemporary society.

Relative poverty

The elderly and the disabled are protected by:

Supplemental Security Income.

You have learned that the demand curve is downward-sloping because of diminishing marginal benefit. When you apply this idea to your total income, you find that:

each dollar you get tends to yield you less benefit than the previous dollar.

If your father earns about 30% less than the typical dad, your income is likely to be about 15% less than the typical child. This is an example of:

economic disadvantage.

In the United States, you are in poverty if your:

family income is below the poverty line.

According to diminishing marginal utility, your marginal utility may be _____ when you are poor, and it becomes _____ when you are richer.

large; smaller

The government funds the safety net in order to reduce inequality and poverty by _____ which is considered as an equalizing force.

raising money using a progressive tax system

The well-being scores of a low-income person and a high-income person are 5.20 and 7.50 respectively. If $25,000 were redistributed from the high-income person to the low-income person, the well-being of the high-income person would fall by 0.05, while the well-being of the low-income person would rise by 0.80. Consequently, this redistribution causes total well-being to:

rise by 0.75.

The poverty line is a:n

somewhat arbitrary threshold.

In a global perspective, the United Nations and the World Bank calculate an absolute poverty line of $1.90 per day based on:

the minimum needed for human survival in modern times.

One problem of redistribution is that means-tested benefits are taken away from people when:

they earn more income.

The poverty line was set using data on food purchases in 1955. Since families spent about a third of their incomes on food, the poverty line was set at:

three times the cost of a low-cost food plan.

Philosophers suggest that you should judge fairness behind the "veil of ignorance" or ask yourself:

what you would want if you didn't know what circumstances you would be born into.

An economist estimates that 60 percent of the money that is being redistributed is lost to "leaks" such as administrative costs. If $25,000 is redistributed from a family in the richest quintile (earning $190,000) to a family in the poorest quintile (who earned only $15,000), how much money will actually be received by the poorer family?

$10,000

It is estimated that 90 percent of the money that is being redistributed is lost to "leaks" such as administrative costs. If $25,000 is redistributed from a family in the richest quintile (earning $190,000) to a family in the poorest quintile (who earned only $15,000), how much money will actually be received by the poorer family?

$2,500

_____ refers to the cash-assistance, goods, and services provided by the government to better the lives of those at the bottom of the income distribution.

The social-safety net

Which of the following is NOT considered a result of income redistribution through social benefits?

These programs lead to policies that further increase inequality.