Poverty and Economic Equality

Question 1

Poverty are number of people who___

Answer 1

fall below certain level of income called poverty line.

Question 2

Income inequality compares the share of total income___

Answer 2

in society that received by different groups.

Question 3

Poverty rate___

Answer 3

% of population below poverty line.

Question 4

Poverty trap___

Answer 4

The poor earn $, gov’t reduce level of assistance it provides. Poor people have no net gain.

Question 5

Temporary Assistance for Needy Families (TANF)-

Answer 5

provided cash to mothers w/ children who were below poverty line

Question 6

Earned Income Tax Credit assists the working poor through___

Answer 6

tax system.

Question 7

Quintiles-

Answer 7

Rank all households by income, then divide all households into 5 groups.

Question 8

Lorenz Curve shows___

Answer 8

a share of population on horizontal axis; a percentage of total income on vertical axis.

Question 9

Shift in wage___

Answer 9

More college grads in recent years than before. Shift demand curve to the right. Which increase in price for high skilled labor.

Question 10

Wealth is a sum of___

Answer 10

all assets.

Question 11

Progressive tax system designed so that___

Answer 11

rich people pay more for tax.

Question 12

Estate tax___

Answer 12

limit how much wealth can be passed on as inheritance.