Economic Inequality

The median household income is

• The income that separates households into two equal groups.

• The most common household income.

• The mean household income.

• The average household income.

The distribution of income in the United States is characterized by the following relationship between the mean, median, and mode incomes

• Mean income < median income < mode income.

• Mode income < median income < mean income.

• Median income < mean income < mode income.

• Mode income < mean income < median income.

If a Lorenz curve moves leftward and becomes closer to the line of equality over time, then

• The population is growing.

• Income is growing.

• Income is being more equally distributed.

• Income is being more unequally distributed.

The above table shows the distribution of income and wealth in Miseria. What percent of income is earned by the richest twenty percent?

• 5 percent

• 20 percent

• 45 percent

• 55 percent

The above table shows the distribution of income and wealth in Miseria. What percent of income is earned by the richest 40 percent of the population?

• 20 percent

• 30 percent

• 55 percent

• 70 percent

The above table shows the distribution of wealth and income for Miseria. What percent of the wealth is owned by the wealthiest twenty percent of the population?

• 0 percent

• 2 percent

• 5 percent

• 83 percent

The above table shows the distribution of wealth and income for Miseria. What percent of wealth is owned by the poorest forty percent of the population?

• 0 percent

• 2 percent

• 5 percent

• 10 percent

The above table shows the distribution of wealth and income in Miseria. What percent of wealth is owned by the poorest twenty percent?

• 0 percent

• 2 percent

• 3 percent

• 5 percent

The above table shows the distribution of wealth and income in Miseria. The Lorenz curve for wealth would

• Be parallel to the line of equality.

• Lie to the left of the Lorenz curve for income.

• Become flatter when moving from left to right.

• Intersect the horizontal axis at twenty percent.

The above table shows the distribution of wealth and income in Miseria. The Lorenz curve for wealth would

• Intersect the horizontal axis at 100 percent.

• Bow outward more to the right than does the Lorenz curve for income.

• Lie parallel to the line of equality.

• Become flatter as one moves from left to right.