Category: Income Inequality

A Gini coefficient of zero means that the ?

A. the income is split equally between the top 20% and the rest of the distribution
B. one person has all the income and every one else has nothing
C. all the income is received by the top 20% of the income distribution
D. income is equally distributed

The marginal tax rate is ?

A. the tax rate you pay on any additional income that you earn.
B. the total amount of tax you pay divided by your total income
C. the additional tax you pay divided by your total income
D. your total income divided by the total amount of tax you pay.

Current anti-poverty programs discourage work because ?

A. benefits are reduced at such a high rate when recipients earn more income that there is little or no incentive to work once one is receiving benefits.
B. in order to be eligible for benefits a recipient cannot have a job
C. they make recipients more comfortable than most middle-class citizens.
D. anti-poverty programs attract naturally lazy people to begin with.

The Gini coefficient is ?

A. the ratio of the percentage of total income received by the top 20% of families to the percentage of total income received by by the bottom 20% of families
B. the most common way of representing the income distribution graphically
C. a commonly used measure of the degree of inequality in an income distribution
D. a commonly used measure of the degree of inequity in an income distribution