Discussions of inequality often focus on annual income inequality. a. From the list below, select the measure(s) that are measures of inequality. Wealth Intergenerational mobility Spending Permanent income b. Why is it important to consider more than just annual income when assessing inequality? Illegal activities skew GDP and GNP, and this impacts citizens' incomes. Living standards and the quality of life encompass more than just current income. Imports and exports should also be counted to get a full picture or earnings. The poverty rate is based on diminishing marginal utility, which depends on more than income.

Discussions of inequality often focus on annual income inequality. a. From the list below, select the measure(s) that are measures of inequality. Wealth Intergenerational mobility Spending Permanent income b. Why is it important to consider more than just annual income when assessing inequality? Illegal activities skew GDP and GNP, and this impacts citizens' incomes. Living standards and the quality of life encompass more than just current income. Imports and exports should also be counted to get a full picture or earnings. The poverty rate is based on diminishing marginal utility, which depends on more than income.

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter20: Income Inequality And Poverty

Section: Chapter Questions

Problem 2CQQ

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A group of 10 people have the following annual incomes: 55,000,30,000,15,000,20,000,35,000,80,000,40,000,45,000,30,000,50,000. Calculate the share of total income each quintile of this income distribution received. Do the top and bottom quintile s in this distribution have a greater or larger share of total income than the top and bottom quintiles of the U.S. income distribution for 2005?
What do you think is more important to focus on when considering inequality: income inequality or wealth inequality?
Describe how each of these changes is likely to affect poverty and inequality: Incomes rise for low-income and high-income workers, but rise more for the high-income earners. Incomes fall for low-income and high-income workers, but fall more for high-income earners.
Who is included in the top income quintile?
Economists experience difficulties in accurately measuring income inequality because of which of the following? Choose one or more: A. The Gini index calculation discriminates against the poor in developed economies. B. Government programs are inefficient and difficult to monitor. C. large, underground economies that lack the reporting of income to the government D. Measurements tend to use "before tax" income, not "after tax" income (disposable income), which is the income people actually have available to purchase goods and services. E. The population size of an economy impacts the distribution of data, causing large economies to show more inequality than smaller economies. F. do-it-yourself production of goods and services (such as growing own food or making own clothing) that are not bought or sold in the market G. in-kind transfers where goods and services are given as aid to the poor instead of cash
WHAT ARE SOME POLICIES THAT A GOVERNMENT CAN IMPLEMENT TO REDUCE INCOME INEQUALITY? SELECT ALL THAT APPLY A. Increase spending in education. B. Lower tax for the top quintile. C. Stregnthen anti-discrimination laws based on race, gender, sexual orientation, marital status, religion, and disability status. D. Increase access to affordable healthcare to all. E. Encourage corporate stock ownership.
a. From the list below, select the measure(s) that are measures of inequality. Intergenerational mobility Permanent income Wealth Spending
Inequality, Social Insurance, and Redistribution Discussions of inequality often focus on annual income inequality. Wealth — a. From the list below, select the measure(s) that are measures of inequality. Intergenerational mobility Spending Permanent income End of Chapter Problem b. Why is it important to consider more than just annual income when assessing inequality? Illegal activities skew GDP and GNP, and this impacts citizens' incomes. Living standards and the quality of life encompass more than just current income. Imports and exports should also be counted to get a full picture or earnings. The poverty rate is based on diminishing marginal utility, which depends on more than income.
Which of the following statements are true about income inequality? Choose all that apply. A. Income inequality in the United States can be largely blamed on corruption. B. Extreme income inequality can be harmful to society C. Income inequality in the United States has improved dramatically over the last few decades D. Income inequality will likely always exist in free societies with free markets
Instructions: Use the interactive tool to plot Lorenz curves for the information in the table. Quintile 1st % of Income, United States, 5 2010 % of Income, Bangladesh, 2010 9 2nd 10 13 3rd 14 16 United States data from Census.gov, before-tax income, rounded to 1/100ths. Data for Bangladesh from WorldBank.org, rounded to 1/100ths. 4th 20 21 5th 51 41 Report your answers to two decimal places. According to these data, the Gini coefficient for the United States in 2010 is The Gini coefficient for Bangladesh in 2010 is These data indicate that in 2010, income inequality is (Click to select) in the United States compared to Bangladesh.
In order to measure income inequality, economists look at how income is distributed in ... Group of answer choices a. quintiles b. degrees c. five percent brackets d. ten percent brackets
"How can Income Inequality in the United States be Reduced"?