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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
$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.
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
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
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
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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.
- Spring '08