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Lecture Economics - Chapter 12: Income distribution, poverty, and discrimination
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Lecture Economics - Chapter 12: Income distribution, poverty, and discrimination
Mai Linh
73
62
ppt
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In this chapter, students will be able to understand: How can a negative income tax solve the “welfare mess”? Could the rich become richer in the 1980’s and other income groups also become better off? What is the effect on labor markets of laws that protect women from jobs deemed “too strenuous” or “too dangerous”?,. | Chapter 12 Income Distribution, Poverty, and Discrimination Key Concepts Summary Practice Quiz Internet Exercises ©2000 South-Western College Publishing * In this chapter, you will learn to solve these economic puzzles: How can a negative income tax solve the “welfare mess”? What is the effect on labor markets of laws that protect women from jobs deemed “too strenuous” or “too dangerous”? Could the rich become richer in the 1980’s and other income groups also become better off? * What is the general trend of Income Distribution? Since 1970, the percentage of income received by families in the lowest 20% has fallen, while the percentage received by families in the 20% highest income groups have risen * Division of the Total Annual Money Income Among Families % of Families 1980 Lowest 5th Second-lowest 5th 5.1% 1990 1997 11.5 17.5 24.3 41.6 15.3 4.6% 10.8 16.6 23.8 44.3 17.4 4.2% 9.9 15.7 23.0 47.2 20.7 Middle 5th Second-highest 5th Highest 5th Highest 5% * What is Median Income? 50% of families earn less than the median income and 50% earn more * Median Income of Families, 1994 Characteristic All families Headed by a male Median Income $44,568 $32,960 $21,023 $39,979 $30,660 $40,040 Headed by a female With head aged 25-34 With head aged 65 and over Headed by a high school grad Person with a bachelor’s degree $67,230 * What are some arguments against income inequality? Wealthy can influence politics Wealthy have more opportunities Wealthy can afford better health care * What is an argument for income inequality? Income inequality gives people an incentive to become more productive * What is the Lorenz Curve? A graph of the actual cumulative distribution of income compared to a perfectly equal distribution of income * 80% 60% 40% 20% 20% 40% 60% 80% Hypothetical Lorenz Curve % of income % of families 100% Perfect Equality Actual Income 100% * 80% 60% 40% 20% 20% 40% 60% 80% Lorenz Curve 1929 & 1997 % of income % of families . | Chapter 12 Income Distribution, Poverty, and Discrimination Key Concepts Summary Practice Quiz Internet Exercises ©2000 South-Western College Publishing * In this chapter, you will learn to solve these economic puzzles: How can a negative income tax solve the “welfare mess”? What is the effect on labor markets of laws that protect women from jobs deemed “too strenuous” or “too dangerous”? Could the rich become richer in the 1980’s and other income groups also become better off? * What is the general trend of Income Distribution? Since 1970, the percentage of income received by families in the lowest 20% has fallen, while the percentage received by families in the 20% highest income groups have risen * Division of the Total Annual Money Income Among Families % of Families 1980 Lowest 5th Second-lowest 5th 5.1% 1990 1997 11.5 17.5 24.3 41.6 15.3 4.6% 10.8 16.6 23.8 44.3 17.4 4.2% 9.9 15.7 23.0 47.2 20.7 Middle 5th Second-highest 5th Highest 5th Highest 5% * What is .
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