Income Inequality

A. exaggerate the inequality of living standards
B. could exaggerate or understate the inequality of living standards depending on whether the transitory shocks are positive or negative
C. understate the inequality of living standards
D. accurately represent the true inequality of living standards

A. Social Security income of the elderly and disabled
B. none of these answers
C. wages fixed by a union or other labour contract
D. equal to the minimum wage
E. a person’s normal or average income

A. poor people are excluded from most leisure and social activities
B. the Pakistan benefit system makes being poor vary degrading
C. if poor people earn more their benefits fall, making them no better off.
D. in the Pakistan poor people are heavily taxed

A. a means tested cash benefit
B. a universal (social insurance based) benefit
C. a benefit in kind
D. none of the above

A. benefits received tax
B. progressive tax
C. regressive tax
D. proportional tax

A. an equal tax
B. a proportional tax
C. a progressive tax
D. a regressive tax

A. average tax rate
B. marginal tax rate
C. proportional tax rate
D. total tax rate

A. those with equal ability to pay should bear unequal tax burdends.
B. those who benefits the most from government services should bear the higher tax burden.
C. those who benefit the most from government services should have the greatest voice in determining what gets produced
D. those with equal ability to pay should bear equal tax burdens.

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

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