Highschool
What is economic insecurity?
The risk of sudden loss of income or surge in expenses.
What are on the axis of the Lorenz Curve?
X-axis: Cumulative Percentage of Population
Y-axis: Cumulative percentage of income
What happens to the Gini Coefficient if the area between the line of perfect equality and the Lorenz Curve increases?
(A) It increases
(B) It decreases
(C) It remains unchanged
(D) It becomes negative
(A) It increases
What does the Lorenz Curve show?
A. The employment situation in an economy
B. The production possibilities of an economy
C. The distribution of income in an economy
D. The consumption patterns in an economy
C. The distribution of income in an economy
Which indicator is a better indicator of the typical household’s income in a country?
A. mean household income
B. median household income
B. median household income
In which of the following jobs might an employer pay efficiency wages?
(A) Jobs that involve producing to meet a pressing deadline.
(B) Jobs that are more dangerous than others.
(C) Jobs where loyalty and hard work are difficult to monitor.
(D) Jobs where workers have “invisible” incentives to work harder.
(C) Jobs where loyalty and hard work are difficult to monitor.
Are countries with a higher poverty rate likely to have a steeper Lorenz Curve?
Yes or No
Yes
What is negative income tax?
A program that supplements the income of low-income workers.
Despite market incentives, discrimination against workers still persists due to what two factors?
1) noncompetitive markets
2) institutionalized discrimination
The Gini Coefficient measures:
A. A country’s trade deficit.
B. A country’s employment rate.
C. A country’s inflation rate.
D. A country’s income inequality.
D. A country’s income inequality.
What type of tax will shift the Lorenz curve closer to the line of equality?
A. Progressive
B. Regressive
C. Proportional
A. Progressive
Who was the Gini Coefficient Named After?
A. Corrado Gini
B. Luis Gini
C. John Nash
D. Luciano Gini
A. Corrado Gini
If Country X has a Gini Coefficient of 0.47 and Country Y has a Gini Coefficient of 0.16, which statement is true?
A. Country Y has a more equitable income distribution than Country X.
B. Country X has a more equitable income distribution than Country Y.
C. Both countries have the same level of income inequality.
D. Neither country has any income inequality.
A. Country Y has a more equitable income distribution than Country X.
Compensating differentials are:
(A) Wage differences among workers based on their level of education.
(B) Wage differences between jobs, reflecting that some jobs are less pleasant or more dangerous than others.
(C) Calculated by Gini coefficient / slope of perfect equality line
(D) Bonuses paid to workers for exceeding their production goals.
(B) Wage differences between jobs, reflecting that some jobs are less pleasant or more dangerous than others.
What is the forecasted Gini coefficient of South Africa in 2024?
A. 0.74
B. 0.63
C. 0.52
D. 0.71
B. 0.63