Microeconomics Chapter 15 Poverty and Income distribution This a 4-part multiply
ID: 1110625 • Letter: M
Question
Microeconomics Chapter 15 Poverty and Income distribution This a 4-part multiply choice question. If you do not intend to answer all parts, please do not answer it. Thank you.
0bc
The worst possible distribution of income is not shown on this graph.
0dc
0ac
year 2
year 3
year 4
year 1
Part C. The income distribution in the United States is generally _____ equally distributed than in European countries and is _____ equally distributed than in many South American countries.
more; less
more; more
less; more
less; less
Part D. In the United States, since the 1970s, which of these is NOT a reason why the Gini coefficient has increased?
expansion of the earned income tax credit
globalization
more single-parent households
increased immigration
Part A. (Figure: Distribution of Income) Of the three line segments shown, which represents the MOST unequal distribution of income?
0bc
The worst possible distribution of income is not shown on this graph.
0dc
0ac
Part A. (Figure: Distribution of Income) Of the three line segments shown, which represents the MOST unequal distribution of income? 2 100 25 0 50 100Explanation / Answer
a) Odc represents the most uneqiual distribution of income. This is because farther the line of inequality from the 45 degree line (Oac) the largher is the inequality. Line Oac shows no inequality. Hence Odc represents most unequal distribution of income in the lorenz curve.
b) Year 3 shows the most unequal distribution of income. This is because year 3 has largest vale of gini coefficient which represents inequality. Higher the value of gini coefficient higher is the inequality.
c) The income distribution in the United States is generally __more___ equally distributed than in European countries and is ___less__ equally distributed than in many South American countries.
d) In the United States, since the 1970s, expansion of earned income tax credit is not a reson why the Gini coefficient has increased. Expansion of earned income tax credit is not a mojor factor of inequality.