Chapter 15: Problem 43
Explain what the long- and short-term consequences are of not promoting equality or working to reduce poverty.
Chapter 15: Problem 43
Explain what the long- and short-term consequences are of not promoting equality or working to reduce poverty.
All the tools & learning materials you need for study success - in one app.
Get started for freeHow is the poverty rate calculated?
Using two demand and supply diagrams, one for the low-wage labor market and one for the high-wage labor market, explain how a program that increased educational levels for a substantial number of low-skill workers could reduce income inequality.
Table 15.9 shows the share of income going to each quintile of the income distribution for the United Kingdom in 1979 and \(1991 .\) Use this data to calculate what the points on a Lorenz curve would be, and sketch the Lorenz curve. How did inequality in the United Kingdom shift over this time period? How can you see the patterns in the quintiles in the Lorenz curves? $$\begin{array}{l|l|l} \hline {}{} {\text { Share of Income }} & {}{} {1979} & {}{} {1991} \\ \hline \text { Top quintile } & 39.7 \% & 42.9 \% \\ \hline \text { Fourt quintile } & 24.8 \% & 22.7 \% \\ \hline \text { Middle quintile } & 17.0 \% & 16.3 \% \\ \hline \text { Second quintile } & 11.5 \% & 11.5 \% \\ \hline \text { Bottom quintile } & 7.0 \% & 6.6 \% \\ \hline \end{array}$$
Briefly explain the differences between TANF, the earned income tax credit, SNAP, and Medicaid.
Describe how each of these changes is likely to affect poverty and inequality: a. Incomes rise for low-income and high-income workers, but rise more for the high-income earners. b. Incomes fall for low-income and high-income workers, but fall more for high-income earners.
What do you think about this solution?
We value your feedback to improve our textbook solutions.