Question 1

-Refer to the above graph,which shows four different Lorenz curves (I,II,III,and IV).Which point indicates that 60% of the families receive only 40% of the income?

Accepted Answer

The answer of 
-Refer to the above graph,which shows four...

Question 2

Between 1982 and 2004 in Canada,while income gains for most groups were stagnant,the income share of the top-earning 1 percent of families ________ from ________ to ________ of taxable income.

Accepted Answer

The answer of Between 1982 and 2004 in Canada,while income...

Question 3

If everyone in a country has the same income,then the area between the Lorenz curve and the line of perfect equality is ________,and the Gini coefficient equals ________.

Accepted Answer

If everyone in a country has the same income, then there is perfect equality and no inequality. Therefore, the area between the Lorenz curve and the line of perfect equality is zero. The Gini coefficient is also calculated based on inequality, so in this case, it would be zero as well.

Question 4

-Refer to the above graph,which shows four different Lorenz curves (I,II,III,and IV).The movement from point b to point e in the graph would indicate that

Accepted Answer

The movement from point b to point e indicates that 40% of income now goes to 80% of families, rather than 60% of families, as the Lorenz curve shifts to show a more equal distribution of income.

Question 5

The combined wealth of the richest 1% of Americans

Accepted Answer

According to multiple studies, including one by the Federal Reserve, the combined wealth of the richest 1% of Americans exceeds the wealth holdings of all Americans below the 95th percentile. Some studies even suggest that this wealth gap is even greater, with the top 1% owning more than the bottom 99% combined.

Question 6

The two elements of poverty intensity are the ________,which is the percentage of the population whose income falls below the poverty line,and the ________,which is the average shortfall between the actual income of poor people and the poverty line.

Accepted Answer

The two elements of poverty intensity are the poverty rate, which indicates the percentage of the population living below the poverty line, and the average poverty gap, which measures the average income shortfall experienced by poor individuals relative to the poverty line. Hence, the best choice is option E, which correctly identifies these two elements as the poverty rate and the average poverty gap.

Question 7

According to the Lorenz curve shown below,the poorest 50% of the families earns

Accepted Answer

The answer of According to the Lorenz curve shown below,the...

Question 8

According to the Lorenz curve shown,the middle quintile of families earns

Accepted Answer

The answer of According to the Lorenz curve shown,the middle...

Question 9

If the Lorenz curve moves closer to the diagonal,the level of inequality

Accepted Answer

When the Lorenz curve moves closer to the diagonal, it indicates that the distribution of income or wealth is becoming more equal. Therefore, the level of inequality must have fallen.

Question 10

The degree of inequality in the distribution of income in an economy is depicted in a(n)

Accepted Answer

The degree of inequality in the distribution of income in an economy is depicted with a Lorenz curve. The Lorenz curve is a graphical representation of the distribution of income or wealth in an economy, showing the percentage of income earned by each cumulative percentage of the population, arranged in ascending order of income. The greater the distance between the Lorenz curve and the 45-degree line, the greater the degree of income inequality in the economy.

Question 11

-Refer to the above graph,which shows four different Lorenz curves (I,II,III,and IV).Which change would indicate that there has been a decrease in income inequality? A movement from point

Accepted Answer

The answer of 
-Refer to the above graph,which shows four...

Question 12

Refer to the graph below.If the area of region A is 0.17 and the area of region B is 0.33,then the Gini coefficient is.

Accepted Answer

The answer of Refer to the graph below.If the area...

Question 13

-Refer to the above graph,which shows four different Lorenz curves (I,II,III,and IV).The greatest increase in income inequality would occur with a shift in a Lorenz curve from

Accepted Answer

A shift from Lorenz curve I to IV indicates a movement towards a more unequal distribution of income, as curve IV is further away from the line of equality compared to curve I.

Question 14

When comparing Canada to the United States and northern European countries in the mid-2000s,the highest Gini coefficient was found in ________;the next highest was found in ________;and the lowest was found in ________.

Accepted Answer

The United States had the highest Gini coefficient, indicating more income inequality, followed by Canada, and the northern European countries had the lowest, indicating less income inequality.

Question 15

Between 1980 and 2009,the Gini coefficient of total income in Canada

Accepted Answer

According to Statistics Canada, the Gini coefficient of total income in Canada increased from 0.294 in 1980 to 0.320 in 2009. This indicates a rise in income inequality over the time period.

Question 16

If one person in a country has all the income,then the Gini coefficient equals

Accepted Answer

The Gini coefficient measures income inequality on a scale from 0 to 1, where 0 represents perfect equality and 1 represents perfect inequality (one person has all the income). Therefore, if one person in a country has all the income, the Gini coefficient would be equal to 1.

Question 17

The Lorenz curve is a graph that shows the

Accepted Answer

The Lorenz curve is used to represent the distribution of income or wealth within a population, illustrating the degree of inequality.

Question 18

Between 1976 and 2009 in Canada,the poverty rate displayed ________ long-term trend,and the average poverty gap displayed ________ long-term trend.

Accepted Answer

The answer of Between 1976 and 2009 in Canada,the poverty...

Question 19

-Refer to the table above.The extra total income under distribution C compared to distribution A can be thought of as

Accepted Answer

The extra total income under distribution C compared to distribution A can be seen as the cost of inequality, as it represents the disparity in income distribution between different groups.

Question 20

If income were distributed completely equally,the Lorenz curve would be a

Accepted Answer

The Lorenz curve represents income distribution, and if income were distributed equally, it would coincide with the 45º line, indicating perfect equality.

Quiz 13: The Economics of Public Policy

-Refer to the above graph,which shows four different Lorenz curves (I,II,III,and IV) .Which point indicates that 60% of the families receive only 40% of the income?

Between 1982 and 2004 in Canada,while income gains for most groups were stagnant,the income share of the top-earning 1 percent of families from to of taxable income.

If everyone in a country has the same income,then the area between the Lorenz curve and the line of perfect equality is ,and the Gini coefficient equals .

-Refer to the above graph,which shows four different Lorenz curves (I,II,III,and IV) .The movement from point b to point e in the graph would indicate that

The combined wealth of the richest 1% of Americans

The two elements of poverty intensity are the ,which is the percentage of the population whose income falls below the poverty line,and the ,which is the average shortfall between the actual income of poor people and the poverty line.