Chapter 14: Problem 13
Why is there reluctance on the part of some in the United States to redistribute income so that greater equality can be achieved?
Chapter 14: Problem 13
Why is there reluctance on the part of some in the United States to redistribute income so that greater equality can be achieved?
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Get started for freeHow has the inequality of income changed in the U.S. economy since the late 1970s?
Describe how a push for economic equality might reduce incentives to work and produce output. Then describe how a push for economic inequality might not have such effects.
Think about the business cycle: during a recession, unemployment increases; it decreases in an expansionary phase. Explain what happens to TANF, SNAP, and Medicaid programs at each phase of the business cycle (recession, trough, expansion, and peak).
What is measured on the two axes of a Lorenz curve?
A group of 10 people have the following annual incomes: \(55,000, \)30,000, \(15,000, \)20,000, \(35,000, \)80,000, \(40,000, \)45,000, \(30,000, \)50,000. Calculate the share of total income each quintile of this income distribution received. Do the top and bottom quintiles in this distribution have a greater or larger share of total income than the top and bottom quintiles of the U.S. income distribution for 2005?
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