Describe the scale of redistribution in the United States
What will be an ideal response?
In the United States, income redistribution increases the share of total income received by the lowest 60 percent of households and decreases the share of total income received by the highest 40 percent of households. Specifically, the poorest 20 percent of households receive only 0.9 percent of total market income earned in the United States, but receive 4.6 percent of income after taxes and benefits. The richest 20 percent of households receive 55.6 percent of total market income earned in the United States, but receive only 46.7 percent of income after taxes and benefits.
You might also like to view...
Critically evaluate the following statement. "It's better to make people wait in line than it is to make them have to pay more for the product."
What will be an ideal response?
An increase in the inflation rate will lead to a ________ nominal interest rate, which will ________ the debt-to-GDP ratio
A) higher; raise B) higher; reduce C) lower; raise D) lower; reduce
When the exchange rate is allowed to adjust to market forces, all of the following are true except one. Which is the exception?
a. The foreign exchange market clears continually. b. The quantities of foreign exchange demanded and supplied are equal. c. The exchange rate will only change if the central bank alters the exchange rate. d. The exchange rate will remain constant until a change occurs in one of the factors that affect supply or demand. e. The forces of demand and supply determine the exchange rate.
The paradox of excessive consumption argues that when households spend all they earn,
a. actual output and potential output will be in equilibrium. b. the financial anxiety of families will be low. c. the economy will achieve rapid, sustainable growth. d. consumption can stagnate because families are in a poor position to deal with increases in debt and financial setbacks.