Econ 315: Inequality Latest Exam
Questions With 100% Solved Solutions
(2025) Updated.
How does the average American perceive inequality in the U.S.? - Answer A Harvard business
professor and a behavioral economist recently asked more than 5,000 Americans how they
thought wealth is distributed in the US. Most thought that it's more balanced than it actually is.
Asked to choose their ideal distribution, 92% picked one that was more equitable.
How is income dispersed? - Answer -Income can be dispersed in various methods, even with
the same average.
-The distribution of personal earnings among full-time workers is highly unequal and skewed
right.
What is the Lorenz Curve? - Answer Compares cumulative percentage of households (x-axis)
and cumulative percent of monetary income (y-axis).
-A straight Lorenz Curve (the black line) represents perfect income equality.
-The more bowed a Lorenz Curve the more unequally income is distributed.
-There was relatively more income equality in 2014 compared to 1929. The upper income
earners were very rich in 1929 compared to 2014.Bottom earns were slightly more equal in
1929 than 2014.
How is income distribution in the U.S.? - Answer -Lowest 20% of population in 2011 earned
3.5% of the total money income in the U.S.
-Lowest 20% of population in 1947 earned 5.1% of the total money income in the US.
What is the difference between income inequality and wealth inequality? - Answer -Wealth
refers to the stock of assets held by a person or household at a single point in time. These assets
may include financial holdings and saving, but commonly also include the family home.
-Income refers to money received by a person or household over some period of time. Income
includes wages, salaries, and cash assistance from the government.
-Wealth is more important for understanding social inequality because wealth generates
income, so income inequality depends in part on wealth inequality.
What is a percentile? - Answer 80th Percentile-80% of the sample is below you, while 20% of
Questions With 100% Solved Solutions
(2025) Updated.
How does the average American perceive inequality in the U.S.? - Answer A Harvard business
professor and a behavioral economist recently asked more than 5,000 Americans how they
thought wealth is distributed in the US. Most thought that it's more balanced than it actually is.
Asked to choose their ideal distribution, 92% picked one that was more equitable.
How is income dispersed? - Answer -Income can be dispersed in various methods, even with
the same average.
-The distribution of personal earnings among full-time workers is highly unequal and skewed
right.
What is the Lorenz Curve? - Answer Compares cumulative percentage of households (x-axis)
and cumulative percent of monetary income (y-axis).
-A straight Lorenz Curve (the black line) represents perfect income equality.
-The more bowed a Lorenz Curve the more unequally income is distributed.
-There was relatively more income equality in 2014 compared to 1929. The upper income
earners were very rich in 1929 compared to 2014.Bottom earns were slightly more equal in
1929 than 2014.
How is income distribution in the U.S.? - Answer -Lowest 20% of population in 2011 earned
3.5% of the total money income in the U.S.
-Lowest 20% of population in 1947 earned 5.1% of the total money income in the US.
What is the difference between income inequality and wealth inequality? - Answer -Wealth
refers to the stock of assets held by a person or household at a single point in time. These assets
may include financial holdings and saving, but commonly also include the family home.
-Income refers to money received by a person or household over some period of time. Income
includes wages, salaries, and cash assistance from the government.
-Wealth is more important for understanding social inequality because wealth generates
income, so income inequality depends in part on wealth inequality.
What is a percentile? - Answer 80th Percentile-80% of the sample is below you, while 20% of
