Chapter 14- Section 4 Flashcards
What are reasons for income inequality?
Education, wealth, discrimination, ability, monopoly power
A curve that shows how much the actual distribution of income varies from an equal distribution
Lorenz curve
Why does education affect income inequality?
Because people have more education, education puts people in a better position to get a higher paying job that require a higher level of skills
Why does wealth effect income inequality?
Some people hold more wealth than others, and the distribution of wealth is even more unequal than the distribution of income
How does discrimination affect income inequality?
Women may not be promoted to executive positions and some companies because male executive simply are not accustomed women and roles of power, some unions may deny immigrants or ethnic minorities membership on grounds that they don’t belong, discrimination causes women and minority groups to be crowded into other labor markets where oversupply drives down wages
How does ability affect income inequality?
Some people have certain natural abilities such as professional athletes, the same is true for popular performers
How does monopoly power affect income inequality?
Some groups hold monopoly power allowing them to obtain higher wages for their members.
What does poverty measure?
It depends on prices, the standard of living, and the incomes that others earn.
Annual dollar amounts used to evaluate the money income that families an unrelated individuals receive
Poverty guidelines
What is one reason for the continued high poverty numbers?
The growing gap in the distribution of income
How does the growing gap in the distribution of income effect poverty?
- It involves a structural change in the economy as industry changes from goods production to service production. 2. The growing gap between well-educated and poorly educated workers. 3. Declining unionism. 4. The changing structure of the American family
Economic and social programs that provide regular assistance from the government or private agencies because of need
Welfare
Programs that provide direct cash assistance to those in need phone to the category of income assistance
Temporary assistance for needy families, supplemental security income ( blind or disabled)
Program that assist poor people but do not provide direct cash assistance phone to the category of general assistance
Food stamps, Government issued coupons that can be redeemed for food
What is a another general assistance program?
Medicaid, A joint federal state medical insurance program for low income people.
