Since 1980 the difference between the earnings of college graduates and high sch
ID: 1237508 • Letter: S
Question
Since 1980 the difference between the earnings of college graduates and high school graduates has:Answer
fallen, thereby increasing income inequality.
increased, thereby increasing income inequality.
remained constant.
increased, thereby decreasing income inequality.
The Lorenz curve shows the:
Answer
progressiveness of the Federal tax system.
degree of inequality in the distribution of income.
degree of discrimination against African-Americans and other minorities.
percentage of the population that is below the poverty line.
The basic economic argument for greater income equality is that:
Answer
an equal distribution of income is the logical outcome of any tax-transfer program.
because citizens enjoy political equality, they are also entitled to economic equality.
a more equal distribution of income will tend to maximize incentives to work, invest, and assume risk.
a more equal distribution of a given amount of income will increase the total utility of consumers.
The greater the area between the Lorenz curve and the diagonal in the Lorenz Curve diagram, the:
Answer
smaller is the Gini ratio and the greater is the degree of income inequality.
larger is the Gini ratio and the greater is the degree of income inequality.
smaller is the Gini ratio and the greater is the percentage of the population in poverty.
larger is the Gini ratio and the greater is the percentage of the population in poverty.
Wealth represents:
Answer
a stock of real and financial assets.
a flow of income.
financial assets only.
real assets only.
Explanation / Answer
Since 1980 the difference between the earnings of college graduates and high school graduates has: Answer fallen, thereby increasing income inequality. The Lorenz curve shows the: Answer degree of discrimination against African-Americans and other minorities. The basic economic argument for greater income equality is that: Answer a more equal distribution of income will tend to maximize incentives to work, invest, and assume risk. he greater the area between the Lorenz curve and the diagonal in the Lorenz Curve diagram, the: Answer smaller is the Gini ratio and the greater is the degree of income inequality. Wealth represents: Answer a stock of real and financial assets.