Urban Econ Final

Question 2   The difference between rich and poor is becoming more extreme, and as income inequality widens the wealth gap in major nations, education, health and social mobility are all threatened — Helene D. Gayle   2(a). Please describe six ways to reduce income inequality from the society?   2(b) Please explain the following concepts. Lorenz Curve Gini Coefficient   2(c) Please explain the concept of externality. Do you think the government should charge higher tax rate from the business enterprises to reduce pollution? Please explain your answer

Below is a Lorenz Curve for a given country.  Suppose its government establishes a 10% income tax on persons earning more than $500,000/year and uses the proceeds to subsidize secondary education.  Show how the tax would affect income inequality by drawing the new Lorenz Curve.

QUESTION 46 46. Which of the following are ineffective anti-poverty policies? The minimum wage Rent controls Trade protection Farm price supports All the above O O O

Dina and Charles are married, under the age of 65, and have two children under the age of 18. Charles works full time and earns $19,000, while Dina works part time and earns $9,000. Thus, in total, their family income is $28,000. Are Charles and Dina living in poverty? O Yes O No Suppose that Charles divorces Dina and leaves the family without paying alimony or child support. Dina must now support her two children alone, so she begins working full time and earns a total of $18,000. Are Dina and her children living in poverty? O Yes O No Again, consider Dina, a single mother with two children under 18 who earns an annual income of $18,000. Suppose that Dina qualifies for a welfare program for single mothers that provides her with $4,000 in food assistance. After receiving welfare, is Dina's family living in poverty? O Yes O No

1. A government economist, Mollie Orshanky, first calculated this in 1963 by multiplying the cost of a very minimal diet by 3, as a 1955 government study had determined that the typical American family spent 1/3 of its income on food.   Group of answer choices a. episodic poverty b. popularity index c. welfare line d. poverty line

1. How does the population of a low-income country such as Ethiopia differ from that of a high-income nation such as the United States in terms of poverty? Do you think the people living in high-income nations have a responsibility to address poverty in the rest of the world ? If so, why? If not, why not?

Use the table below to answer this question Income(s) range Population 0-10,000 10,000 10,000-30,000 5000 30,001-50,000 2000 50,001-69,999 500 70,000-90,000 300 90,000-100,000 150 Over 100,000 50 If the poverty line is $70,000, what is the poverty rate of this town? 1.02% 97.22% 67.67% 83.33%

1. Define the concept of absolute poverty and Identify FOUR (4) measures undertaken by the government to eradicate rural poverty.

How do government statisticians determine the poverty rate? How could the poverty rate fall while the number of people in poverty rises? Which group in each of the following pairs has the higher poverty rate: (a) children or people age 65 or over? (b) African Americans or foreign-born noncitizens? (c ) Asians or Hispanics?

What is the urban inequality rate compared to national inequality rate in Rio de Janeiro? Give a comparison of urban poverty and urban inequality rates in Rio.

18. In most cases, reducing inequality helps society as a whole (at the expense of paying certain costs). Explain why this is why it is better for society if we have less inequality of income and/or wealth.

The income threshold used by the organization International Poverty Line for extreme poverty   a. Is a guideline for policy makers and not an exact “tipping point” at which point a person falls into extreme poverty. b. Is adjusted for price differences across countries. c. Is one of several thresholds sometimes used to discuss poverty that show that the percentage of people living in poverty has been declining in recent decades. d. Is agreed on by all organizations working on poverty. e. All of the above except d.