US17L1

  • 1

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    The richest 1 percent of Americans own approximately ________________.

    9 percent of the wealth
    one third of the wealth
    $193,000 worth of wealth
    one third of all property

  • 2

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    A curve that illustrates the relationship between the cumulative percentage of income and the cumulative percentage of households is called __________________.

    a cumulative curve
    an income curve
    a wealth curve
    a Lorenz curve

  • 3

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    Poverty is a state where a household's income is insufficient to buy the _______ that are deemed necessary.

    food, shelter, and clothing
    food, clothing, and transportation
    non-taxable items
    food, shelter, and transportation

  • 4

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    In 1997, the poverty level for a four-person family in the United States was an annual income of _______________.

    $10,000
    $15,000
    $20,000
    $16,813

  • 5

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    The measured distribution of _______ is a more accurate indicator of the degree of economic inequality than the measured distribution of _______ because _______ data does not include _______.

    wealth; income; income; human capital
    income; wealth; wealth; human capital
    income; wealth; wealth; employment information
    wealth; income; income; holdings of real estate

  • 6

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    An income tax that taxes income at a marginal rate that increases with the level of income is a ___________ income tax.

    regressive
    progressive
    proportional
    fair

  • 7

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    The more that Clayton earns, the smaller is the proportion of the last dollar earned he is required to pay in income tax. Clayton faces a __________________ income tax.

    progressive
    regressive
    proportional
    flat-rate

  • 8

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    A flat-rate tax is also called ______________________.

    a constant rate tax
    a proportional income tax
    a property tax
    an excise tax

  • 9

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    The redistribution of income creates the "big tradeoff", which is a tradeoff between _____________________.

    income and wealth
    equity and efficiency
    Supplementary Security Income and the Food Stamp program
    rich and poor

  • 10

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    A _______ gives every family a guaranteed minimum annual income and taxes all income above the guaranteed minimum at a fixed marginal tax rate.

    welfare subsidy plan
    negative income tax
    welfare reform plan
    marginal income tax

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