Unformatted text preview: of income more equitable, it distorts incentives, alters behavior, and makes the al-location of resources less efficient. Our discussion of the distribution of income proceeds in three steps. First, we assess how much inequality there is in our society. Second, we consider some dif-ferent views about what role the government should play in altering the distribu-tion of income. Third, we discuss various public policies aimed at helping society’s poorest members. THE MEASUREMENT OF INEQUALITY We begin our study of the distribution of income by addressing four questions of measurement: ± How much inequality is there in our society? ± How many people live in poverty? “As far as I’m concerned, they can do what they want with the minimum wage, just as long as they keep their hands off the maximum wage.”...
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This note was uploaded on 07/30/2010 for the course ECON 120 taught by Professor Abijian during the Spring '10 term at Mesa CC.
- Spring '10