Economics Chapter 21 2 The Lorenz Curve Maps The Cumulative

71. The Lorenz curve maps:

72. Perfect income equality means:

73. The Gini coefficient measures:

74. A Gini coefficient of zero indicates:

75. The Gini coefficient is calculated by measuring the area between:

76. The ______ the Lorenz curve is from/to the line of perfect equality, the _____ is the Gini coefficient,

and the __________ income equality exists.

77. The global pattern of inequality has:

78. Most countries in the world have Gini coefficients ranging from:

79. Most of Europe has relatively _______ inequality, and much of Latin America and southern Africa has

relatively _________ inequality.

80. Inequality between countries, in terms of differences in their average national incomes, has been:

81. Inequality within countries has been __________, and inequality between countries has been

_________ in recent decades.

82. In recent decades, richer countries have experienced __________ inequality, and poor countries

have experienced ____________ inequality.

83. In recent decades, countries with high economic growth have experienced _______ inequality, and

84. Which of the following types of countries has experienced decreasing inequality in recent decades?

85. Which of the following types of countries has experienced increasing inequality in recent decades?

86. As of 2010, the Gini coefficient was 33.9 in India and 40.8 in the United States. We can interpret this

to mean that inequality:

87. One of the factors that causes differences in inequality across countries is:

88. Skill-biased technical change is:

89. Income mobility is:

90. Income mobility tells us:

91. A standard way to measure income mobility is to compare:

92. If we compare income mobility in absolute terms, we would measure whether a person’s income:

93. If we compare income mobility in relative terms, we would measure whether a person’s income:

94. The United States has had:

95. Which of the following countries has higher income mobility than the United States?

96. Which of the following countries has lower income mobility than the United States?

97. Which of the following could be considered a goal of policy to address poverty and inequality?

98. An example of a policy aimed at economic development that would also indirectly impact poverty

would be:

99. A plan to revitalize the downtown area of a struggling city would fulfill which of the following goals to

address poverty and inequality?

100. Creating policy with the goal of increasing economic growth would be considered:

101. Social insurance programs are designed to:

102. Programs that require people to pay into a common pool and are in turn eligible to draw on benefits

under certain circumstances are called:

103. An example of a social insurance program offered in the United States is:

104. Unemployment insurance pools risk across __________, and Social Security and Medicare pool risk

across __________

105. One difference from private insurance programs is that social insurance programs:

106. The goal of programs such as government-subsidized housing, food stamps, and Medicaid are to:

107. The term “welfare state” describes the idea that:

108. The basics of the welfare state in the United States started as part of:

109. Progressive taxation serves which of the following goals of economic welfare policy?

110. Conditional cash transfer programs are programs in which:

111. Temporary Assistance to Needy Families:

112. Aid to Families with Dependent Children was a government program with the goal of:

113. Temporary Assistance to Needy Families is a government program with the goal of:

114. Programs that provide goods or services, rather than cash, directly to needy individuals or

households are called:

115. In the United States, an example of a common in-kind transfer would be:

116. Some say in-kind transfers are inefficient because:

117. Retirement benefits are less like __________, and more like _____________

118. An example of a government program aimed at reducing poverty that is universal is:

119. Understanding the potential for tradeoffs between __________ is an important consideration when

designing poverty policy.

120. Means tested government programs:

121. The practice of making choices using generalizations based on observable characteristics like race,

gender, or age is called:

122. Economists understand that using statistical discrimination

123. Average income for adults still varies widely across gender and racial groups in the United States,

which tells us:

124. In situations where businesses discriminate in response to the preferences of consumers,

discrimination:

125. In situations where businesses who choose to discriminate because they are prejudiced are few in

an industry, discrimination:

126. Once active discrimination ends, it:

127. Differences in earnings between racial groups is due in part from differences in:

128. Incomes for adults vary widely across race and gender in the United States. These differences could

be due to:

129. Incomes for adults vary widely across race and gender in the United States. These differences could

be due to:

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Chapter 21 Test Bank Summary