Addressing Income Inequality

The Lorenz curve is a diagram that illustrates

• The extent of poverty in a country

• the extent of income or wealth inequality in a country

A government tax on junk foods or other demerit goods may not be successful if ....(select all that apply

• Demand for the good is highly elastic

• There a few substitutes for the good

• demand for the good is highly inelastic

• the tax pays for education campaigns about the harmful effects of the good

A quick summary - write down a list of factors for the income inequality.

A government is committed to reducing the Gini coefficient.

Which policy is most likely to fail to achieve that policy objective?

• a decrease in ad valorem sales tax rates

• a more regressive income tax system

• a more progressive income tax system

• an increase in transfer payments to the unemployed

The diagram shows the Gini coefficient for four countries between 1975 and 2010. Which country made the greatest move towards a more equal income distribution over the

period?

• Brazil

• China

• India

• Mexico

Movement from a farm to a city is considered which type of migration?

• Migrant stream
• Intercontinental
• External Migration
• Rural to Urban migration

What are the two main types of economic inequality?

• wealth inequality

• income inequality

• social inequality

• energy inequality

Global wealth is distributed equally around the globe.

• False

• True

____________ is the key to reducing the income gap.

• Education

• Political power

• A new economic system

A _______ tax is one in which the tax rate increases as the taxable amount increases.

• progressive

• regressive

• social

• communist