According to the analysis and data presented in class, the following are facts and possible reasons for economic inequality in USA within the last few decades, EXCEPT: Question 5 options: The USA has experiences within the last decades continuous increase in Economic Inequality, with special oncentration at the very top 1%. Part of this inequality is is the increasing wage gaps between the skilled vs low skilled workers. High skilled workers are earning more in relative terms in part due to an increase in demand for high skilled labor. Salaries for average wage earners have increased in proportion to their real productivity.

According to the analysis and data presented in class, the following are facts and possible reasons for economic inequality in USA within the last few decades, EXCEPT: Question 5 options: The USA has experiences within the last decades continuous increase in Economic Inequality, with special oncentration at the very top 1%. Part of this inequality is is the increasing wage gaps between the skilled vs low skilled workers. High skilled workers are earning more in relative terms in part due to an increase in demand for high skilled labor. Salaries for average wage earners have increased in proportion to their real productivity.

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter33: Income, Income Distribution, And Poverty

Section: Chapter Questions

Problem 12E

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As the coronavirus spreads across the globe, it appears to be setting off a devastating feedback loop with another of the gravest forces of our time: economic inequality. In societies where the virus hits, it is deepening the consequences of inequality, pushing many of the burdens onto the losers of today’s polarized economies and labor markets. Research suggests that those in lower economic strata are likelier to catch the disease. They are also likelier to die from it. And, even for those who remain healthy, they are likelier to suffer loss of income or health care as a result of quarantines and other measures, potentially on a sweeping scale. At the same time, inequality itself may be acting as a multiplier on the coronavirus’s spread and deadliness. Research on influenza has found that in an epidemic, poverty and inequality can exacerbate rates of transmission and mortality for everyone. This mutually reinforcing cycle, experts warn, may be raising the toll of the virus as it is…
The Marginal Productivity theory of income determination implies everyone gets paid for the value they produce: Critically assess this claim, exploring the arguments and evidence for and against it, and outline the most prominent alternative theory of income distribution and inequality.
Calculate 1) average incomes 2) the Palma ratio (P10:P40) for each year to show that such urbanization combined with a persistent urban-rural income gap would be enough to create an inverted U-shape relationship (Kuznets Curve) between average income and inequality.
“According to the World Bank, South Africa remains a dual economy with one of the highest inequality rates in the world, with a Gini Coefficient of 0.643.” Explain in depth: A discussion relating to the attributes that make the Gini coefficient a desirable means of measurement; • Explain the implications of a Gini Coefficient of 0.643 relating to the South African economy, retail sector and brand of the organisation. Derive practical examples from the Lorenz curve to substantiate your explanation.
Two competing approaches in explaining the phenomenon of poverty inequality and solutions to overcome it are the Basic Needs Poverty Approach and the Basic Rights Poverty Approach. Critically describe the differences as well as the advantages and disadvantages of these two approaches!
Describe how income inequality and poverty are explained by the structural functional, conflict, and symbolic interaction perspectives. What is at least one shortcoming of each theory?
No written by hand solution Suppose there are two sectors, call them A [agriculture] and M [manufacturing]. People earn say $5 an hour in agriculture and $10 an hour in manufacturing. Suppose we are interested in the share of the bottom 40% and the richest 20%. Let x be the share of people in manufacturing. Derive a formula that gives you the shares of income earned by the lowest 40% of the population and the richest 20% of the population as a function of x. This is a connection between structural transformation and the behavior of inequality.
The dynamic nature of poverty can be observed through... [Select multiple answers] a transition matrix that tells us what proportion of poor and non-poor have transitioned in and out of poverty. poverty dynamics in multiple periods as a film and then ascertaining whether people are transitory, chronic, or persistent poor. a recursion function that describes how present poverty can be determined from past poverty poverty gap ratio (PGR) that tells us the total amount of resources needed to eliminate poverty relative to the available resources.
Questions: what are some of the dimensions of economic inequality and what is considered income? As in the case of income distribution, calculation of wealth distribution is done by different entities using different measurements, resulting in a disparity in outcomes. In fact, commonly, wealthis narrowly defined as financial wealth—namely, cash on handand the money value of tangible and nonliquid assets. Even justthe market valuation of financial portfolios is commonly used todefine financial wealth. However, some may extend the definitionto include the value of income streams and insurance rights that,for the most part, cannot be transacted or encumbered. Theseinclude Medicare, Medicaid, and Social Security. When suchtransfers and public assistance are included, the poor and manyelderly could benefit, reducing the wealth disparity (Galbraith2016). To obtain net wealth, the value of the debts are subtractedsubtracted from the value of the assets. Galbraith stated thatfinancial wealth…
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.
Questions Explain three methods of measuring the income inequality of a nation? 1.kuznet ratio 2. Lorenz curve 3. Gini coefficient As in the case of income distribution, calculation of wealth distribution is done by different entities using different measurements, resulting in a disparity in outcomes. In fact, commonly, wealthis narrowly defined as financial wealth—namely, cash on handand the money value of tangible and nonliquid assets. Even justthe market valuation of financial portfolios is commonly used todefine financial wealth. However, some may extend the definitionto include the value of income streams and insurance rights that,for the most part, cannot be transacted or encumbered. Theseinclude Medicare, Medicaid, and Social Security. When suchtransfers and public assistance are included, the poor and manyelderly could benefit, reducing the wealth disparity (Galbraith2016). To obtain net wealth, the value of the debts are subtractedsubtracted from the value of the assets.…
This question is in the context of the Becker model. Suppose Firm A and Firm B sell their output in the same output market, purchase inputs in the same input markets and use the same production technology. Suppose the owners of Firm A and Firm B hire only women, with the following inequality true:WF(1 + dA) < WMandWF(1 + dB) < WM.If the discrimination coefficient is higher for Firm A than Firm B (dA > dB), then which of the following statements is true?●Firm B will earn higher profits●Both firms will earn the same profits●Firm A will earn higher profits●Both firms will earn less profit than they would if they had d=0

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	The USA has experiences within the last decades continuous increase in Economic Inequality, with special oncentration at the very top 1%.
	Part of this inequality is is the increasing wage gaps between the skilled vs low skilled workers.
	High skilled workers are earning more in relative terms in part due to an increase in demand for high skilled labor.
	Salaries for average wage earners have increased in proportion to their real productivity.