POVERTY RATE/INCOME DISTRIBUTION.. MEASURING THE ECONOMY

What are some reasons that some workers make more/less than others? (CHOOSE ALL THAT APPLY)

• education level

• talent/skill level

• work habits

• family support and values

The POVERTY THRESHOLD is

• lowest amount of income that a family can make to maintain a basic standard of living

• highest amount of income that a family can make before they are considered rich

• lowest amount of taxes that the gov't can collect

• highest number of people in a family that is permitted by tax law

The gov't uses the POVERTY RATE to determine..

• how much money poor people earn

• how many people donate money to charity

• how many people are living below the poverty threshold

• how much money to take from the rich

Two ways to measure income inequality are..

• poverty rate

• GINI Index

• Lorenz Curve

• HS graduation rate

The rich generally pay more in income taxes than the poor (both in percentage of money taxed and in amount paid).

• TRUE

• FALSE

Some reasons why there is a continuing growth of income inequality include:

• the economy is against families living in poverty

• more single-parent households

• educated/skilled workers are able to demand higher salaries

• lower/semi-skilled jobs (manufacturing) are not as available

Over the last 2 decades the poverty rate in the US has continued to grow

• TRUE

• FALSE

The measurement used to determine the inflation rate is called the ___

• GDP

• CPI

• Poverty Rate

• GINI Index

The total dollar value of goods produced by a country in a year is known as the ___

• GDP

• CSI

• Poverty rate

• Lorenz Curv

When determining how much a country has produced, adjusting for inflation and price increases, we would use ___ as the measurement

• Real GDP

• Nominal GDP

• CSI

• Poverty threshold