Economics Chapter 23 Income Inequality, Poverty, and Disc

Income Inequality, Poverty,

and Discrimination are are things the government tries to help with.

• True

• False

Which is used to evaluate income inequality?

• The Lorenz curve

• The Gini ratio

• Both are used to evaluate income inequality

Income inequality is a continuing concern in much of the world and a debate on how to correct the disparity is ongoing.

• False

• True

The United States’ average household income of $68,426 is among the highest in the world.

• False

• True

When the population is divided into 5 numerically equal groups, this is called __________.

• quota

• quintiles

• query

The top 20% of households are earning more than 51% of total income.

• False

• True

__________ ___________is defined as the unequal distribution of an economy’s total income among households.

• Income equality

• Income inequality

The ______________ __________ is a curve showing the distribution of income in an economy.

• Llahma curve

• Lorenz curve

• Liberty curve

The ____________ ___________is a numerical measure of the overall dispersion of income among households; the higher the number, the more inequality of incomes in the economy.

• Gloria ratio

• Gini ratio

• German ratio

Another word for quintiles is fifths (Example: quintuplets). In this picture, what is true?

• Bottom quintile receives 51.2% of total income while the top quintile receives 3.1% of it.

• Bottom quintile receives 3.1% of total income while the top quintile receives 51.2% of it.

• Income is evenly distributed in the US