Mod 6.5: Income and Wealth Inequality

When everyone pays the same percentage tax for an item (like sales tax), the tax is:

• disproportional

• progressive

• regressive

• propotional

• fair

A Lorenz curve illustrates:

• poverty

• productivity

• earnings

• income inequality

• factor distribution

Which of the following statements about poverty is true?

• The poverty rate has steadily declined over the past two decades.

• Mean income is a better measure of poverty than median income.

• Married couples are more likely to be poor than single individuals.

• Bright students from poor families are almost as likely to finish college as bright students from rich families.

• High-quality preschool education helps to end the poverty cycle.

A country’s level of income inequality is best represented by its:

• mean household income

• Gini coefficient

• redistribution efforts

• unemployment rate

• income tax credits

Which of the following are causes of income and wealth inequality? (MULTI-SELECT)

• discrimination

• human capital

• income redistribution

• inheritance

• antipoverty programs

Which of the following is a market-driven reason for income inequality?

• low supply of workers willing to do dangerous jobs

• high demand for unskilled labor

• government regulation

• unions

• high supply of workers willing to work from home