USU-Intro To MacroEcon - Assignment 15

Has been endorsed by both republican and democratic

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Unformatted text preview: been endorsed by both Republican and Democratic candidates for president. Question 17 (1 point) If in the negative income tax proposal the guaranteed income floor is $9,000 and the tax rate is 25 percent, what is the value of the breakeven income? 1. 2. 3. 4. 5. $45,000 $9,000 $22,500 $18,000 $36,000 Question 18 (1 point) According to the text, incomes differ greatly from one nation to another as well as within nations. What does this mean? 1. It means that the middle class in one country is also the middle class in any other country. 2. It means that the poorest people in a rich country could be among the richest in a poor country. 3. It means that the poorest 10 percent of the population in one country will be the poorest in any nation. 4. It means that the richest 10 percent of the population in one country will be the richest in any nation. 5. It means that the richest people in a poor nation will be among the poorest in another nation. Question 19 (1 point) Which of the following explanations for the uneven distribution of income in the world has been argued by economists? 1. 2. 3. 4. Older countries tend to be richer. People who live in colder countries tend to be more work oriented. Poorer countries tend to have unfounded cultures. The freer the economic and political system, the greater the rate of economic growth. 5. None of these. Question 20 (1 point) It has been suggested that a reform to allow poor people to establish clear title to assets could be a means to induce growth in developing countries. Why could this promote poor people's economic growth? 1. Because they would be landlords and be allowed to exploit other people. 2. Because they could then bet their assets. 3. Because they could then borrow against their assets. 4. Because they could then destroy their assets and get away with it. 5. None of these. Question 1 (5.00 points) Are people who are poor today in the United S tates likely to be poor for the rest of their lives? Under what conditions is generational poverty likely to exist? Question 2 (5.00 points) What is the Lorenz curve? What would the curve look like if income were equally distributed? Could the curve ever bow upward above the line of income equality? Citation: admin. (2009, January 27). Assignment 15. Retrieved January 07, 2011, from Free Online Course Materials — US U OpenCourseWare Web site: http://ocw.usu.edu/economics/introductionto-microeconomics-1/assignment15.htm. Copyright 2008, by the Contributing Authors. This work is licensed under a Creative Commons License....
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This homework help was uploaded on 03/18/2014 for the course ECON 2010 taught by Professor Staff during the Spring '08 term at Utah Valley University.

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