In the figure, the poorest 40 percent of all families receive what share of income?

20 percent
15 percent
10 percent
1 percent

In the figure, the third lowest 20 percent of all families receive what share of income?

20 percent
5 percent
30 percent
10 percent

The closer the Lorenz curve for income is to the line of equality, the more _____________ is distributed.

unequally income
unequally wealth
equally wealth
equally income

The government in the country of Zappoo is trying to decide which tax plan to implement. The table shows four alternative plans. If the government decides to implement a progressive income tax, it will implement tax plan ______.

D
C or B
B
A

The government in the country of Zappoo is trying to decide which tax plan to implement. The table shows four alternative plans. If the government decides to implement a proportional income tax, it will implement tax plan __________.

B
D
A
C

The guaranteed minimum annual income is $15,000, and the marginal tax rate is 10 percent. A family with a market income of $10,000 will have total income of __________________.

$10,000
$25,000
$24,000
$15,000

The guaranteed minimum annual income is $15,000, and the marginal tax rate is 30 percent. What is the break-even level of income?

$150,000
$4,500
$50,000
$21,429

The table shows the distribution of income in Swacko. The government of Swacko imposes a 20 percent tax on the people with the highest 40 percent of income. The government then distributes 40 percent of the tax collected to the lowest 20 percent and 30 percent to the second 20 percent and the middle 20 percent. Before and after the distribution, what percentage of national income belongs to the middle 20 percent?

8 percent; 12.8 percent
10 percent; 10 percent
$500,000; $700,000
10 percent; 14.8 percent

The table shows the distribution of income in Swacko. The government of Swacko imposes a 20 percent tax on people with the highest 40 percent of income. The government then distributes 40 percent of the tax collected to the lowest 20 percent and 30 percent to the second 20 percent and the middle 20 percent. After the redistribution, the Lorenz curve for income ________.

is equal to the line of equality
is closer to the line of equality
is above the line of equality
equals the Lorenz curve for wealth

The price of health care in the United States increased between 1980 and 1998 because the _______ increased by more than the _______.

quantity of health care demanded; quantity of health care supplied
supply of health care; demand for health care
demand for health care; supply of health care
inflation rate; health care worker wage rates

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