Learning Curve ch 13

utilitarianism.

Omar is an economist who believes that the maximization of individual well-being should be the government's priority, by redistribution of wealth as necessary. Omar is an advocate of:

less inequality and less poverty.

Once we take taxes and transfers into account, there is:

Around half of spells of poverty last less than a year.

Which of the following is TRUE about a spell of poverty?

Absolute Poverty

judges the adequacy of resources relative to an unchanging standard.

10,000

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?

effective marginal tax rate.

As you earn more money, you may have to pay higher taxes and lose your benefits from the safety net. The sum of higher taxes and reduced benefits accruing from each dollar you earn is called the:

The poverty line is adjusted and updated for inflation.

In the United States, the federal government set the poverty line based on food purchases in 1955. How does the government adjust the poverty line over time?

of opportunity; independent

Intergenerational mobility offers a way to measure inequality _____. Advocates of high intergenerational mobility believe that the economic status of children should be _____ of the economic status of their parents.

relative measure

The fact that the U.S. official poverty rate was initially set equal to half the median income of a family reflects the fact that the poverty line is:

reduce; higher

The safety net can _____ the incentives for people to seek _____ paying work.

ensure a minimum material standard of living; redistributes

To help _____ for those at the bottom of the income distribution, the government _____ to those people through safety net programs.

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

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: