The belief that everyone should have exactly the same amount of income is
A.
Lorenz principle.
B.
egalitarian principle.
C.
comparableminus−worth
doctrine.
D.
merit standard.
The official definition of poverty is
A.
exactly the 12 percent of U.S. residents with the lowest incomes.
B.
an absolute measure.
C.
a relative measure.
D.
exactly the 20 percent of U.S. residents with the lowest incomes.
A straight-line Lorenz curve shows
A.
an equal distribution of money income.
B.
a greater than proportionate share of income going to middle-income households.
C.
a highly unequal distribution of income.
D.
a high incidence of absolute poverty.
Which of the following is NOT a correct criticism of the Lorenz curve?
A.
It ignores the impact of age distribution on income distribution.
B.
It refers to money income after taxes.
C.
It does not include payments in kind.
D.
It does not deal with differences in family size.
The typical age-earnings cycle shows that
A.
there is a constant negative relationship between age and earnings.
B.
there is no relationship between age and earnings.
C.
there is a positive relationship between age and earnings that eventually turns into a negative relationship.
D.
there is a constant positive relationship between age and earnings.
The idea that some people engage in risky behavior due to the fact that they have good health care is known as
