ECON 1001: Chapter
23 (Income Inequality,
Poverty, and
Discrimination) with
complete verified
solutions
Average household income in the United States is among the ____ in the
world. - answer highest
Based on the data in the table, to which category of income distribution did
the largest percentage of households belong in 2017?
a) $100,000 and above
b) $50,000-$74,999
c) $25,000-$34,999
d) Under $15,000 - answer a) $100,000 and above
A quintile is ____ of the total number. - answer 20% or 1/5
A graph that depicts the income distribution in a nation is the ______.
a) Lorenz Curve
b) aggregate supply curve
c) aggregate demand curve
d) Laffer Curve - answer a) Lorenz Curve
, The diagonal line in a Lorenz curve indicates a distribution of income where
______.
a) only one-fifth of households receive the nation's total income
b) the nation earns very little or no income
c) every household has the same income
d) the government collects all income - answer c) every household has the
same income
True or false: Average household income in the United States is higher than
in most other countries in the world. - answer True.
True or false: The diagonal line in a Lorenz curve indicates that the top 20%
of households earn 80% of the nation's income. - answer False.
Each point on the diagonal line indicates that a particular percentage of
households receive the same percentage of income. 20% of all households
receive 20%, 60% receive 60%, etc.
Based on the data in the table, what percentage of households had before-
tax incomes of less than $25,000 in 2017?
Multiple choice question.
a) 33.3%
b) 21.4%
c) 2.5 %
d) 54.7% - answer b) 21.4%
9.8 + 11.6
The Gini ratio is a numerical measure of the overall _____ of income in the
economy. - answer dispertion/allocation/distribution
23 (Income Inequality,
Poverty, and
Discrimination) with
complete verified
solutions
Average household income in the United States is among the ____ in the
world. - answer highest
Based on the data in the table, to which category of income distribution did
the largest percentage of households belong in 2017?
a) $100,000 and above
b) $50,000-$74,999
c) $25,000-$34,999
d) Under $15,000 - answer a) $100,000 and above
A quintile is ____ of the total number. - answer 20% or 1/5
A graph that depicts the income distribution in a nation is the ______.
a) Lorenz Curve
b) aggregate supply curve
c) aggregate demand curve
d) Laffer Curve - answer a) Lorenz Curve
, The diagonal line in a Lorenz curve indicates a distribution of income where
______.
a) only one-fifth of households receive the nation's total income
b) the nation earns very little or no income
c) every household has the same income
d) the government collects all income - answer c) every household has the
same income
True or false: Average household income in the United States is higher than
in most other countries in the world. - answer True.
True or false: The diagonal line in a Lorenz curve indicates that the top 20%
of households earn 80% of the nation's income. - answer False.
Each point on the diagonal line indicates that a particular percentage of
households receive the same percentage of income. 20% of all households
receive 20%, 60% receive 60%, etc.
Based on the data in the table, what percentage of households had before-
tax incomes of less than $25,000 in 2017?
Multiple choice question.
a) 33.3%
b) 21.4%
c) 2.5 %
d) 54.7% - answer b) 21.4%
9.8 + 11.6
The Gini ratio is a numerical measure of the overall _____ of income in the
economy. - answer dispertion/allocation/distribution
