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8.4 Describe the distribution of income andwealth in the United States.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter15: Poverty And Economic Inequality

Section: Chapter Questions

Problem 13SCQ: Why is there reluctance on the part of some in the United States to redistribute income so that...

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8.4 Describe the distribution of income and
wealth in the United States.

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A group of 10 people have the following annual incomes: 55,000,30,000,15,000,20,000,35,000,80,000,40,000,45,000,30,000,50,000. Calculate the share of total income each quintile of this income distribution received. Do the top and bottom quintile s in this distribution have a greater or larger share of total income than the top and bottom quintiles of the U.S. income distribution for 2005?
A group 0f 10 people have the following annual incomes: 24,000,18,000,50,000,100,000,12,000,36,000,80,000,10,000,24,000,16,000. Calculate the share of total income that each quintile receives from this income distribution. Do the top and bottom quintiles in this distribution have a greater or larger share of total income than the top and bottom quintiles of the U.S. income distribution?
Who is included in the top income quintile?
What are the main reasons economists give for the increase in inequality of incomes?
Describe how each of these changes is likely to affect poverty and inequality: Incomes rise for low-income and high-income workers, but rise more for the high-income earners. Incomes fall for low-income and high-income workers, but fall more for high-income earners.
How has the inequality of income changed in the U.S. economy since the late 1970s?
What is the poverty line?
Identify some public policies that can reduce the level of economic inequality.
Why is there reluctance on the part of some in the United States to redistribute income so that greater equality can be achieved?