Chapter 28 Income Distribution And Poverty

Question 1

Transfer Payments

Answer 1

Payments to persons that are not made in return for goods and services currently supplied

Question 2

Lorenz Curve

Answer 2

A graph of the income distribution that expresses the relationship between the cumulative percentage of households and the cumulative percentage of income

Question 3

Gini Coefficient

Answer 3

A measure of the degree of inequality in the income distribution

Question 4

Human Capital

Answer 4

Education, development of skills, and anything else that is particular to the individual and that increases personal productivity

Question 5

Wage Discrimination

Answer 5

The situation in which individuals of equal ability and productivity (as measured by their contribution to outfit) are paid different wage rates

Question 6

Poverty Income Threshold (Poverty Line)

Answer 6

The income level below which people are considered to be living in poverty