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2 of 50. Pay Distribution and Poverty. Fernando
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PowerPoint Lectures for Principles of Microeconomics, 9e By Karl E. Case, Ray C. Reasonable & Sharon M. Oster ;

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Income Distribution and Poverty Prepared by: Fernando & Yvonn Quijano

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Income Distribution and Poverty PART III MARKET IMPERFECTIONS AND THE ROLE OF GOVERNMENT 18 CHAPTER OUTLINE The Utility Possibilities Frontier The Sources of Household Income Wages and Salaries Income from Property Income from the Government: Transfer Payments The Distribution of Income Inequality in the United States The World Distribution of Income Causes of Increased Inequality Poverty The Distribution of Wealth The Redistribution Debate Arguments Against Redistribution Arguments in Favor of Redistribution Programs and Policies Financing Redistribution Programs: Taxes Expenditure Programs How Effective Are Antipoverty Programs? Government or the Market? A Review

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Income Distribution and Poverty value Fairness. Why do a few people get more than others? What are the wellsprings of imbalance? Ought to the administration change the appropriation produced by the market?

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The Utility Possibilities Frontier  FIGURE 18.1 Utility Possibilities Frontier If society were comprised of two individuals, I and J, and every one of the presumptions of flawless rivalry held, the market framework would prompt to some point along PP′. Each point along PP′ is effective; it is difficult to improve I off without exacerbating J off, and the other way around. Which point is ideal? Is B superior to C ? utility potential outcomes wilderness A realistic representation of a two-man world that demonstrates all focuses at which I\'s utility can be expanded just if J\'s utility is diminished.

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The Sources of Household Income Wages and Salaries Required Skills, Human Capital, and Working Conditions human capital The supply of learning, abilities, and gifts that individuals have; it can be intrinsic or gained through instruction and preparing. remunerating differentials Differences in wages that outcome from contrasts in working conditions. Dangerous employments for the most part pay higher wages; exceedingly alluring occupations ordinarily pay bring down wages.

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Which of the accompanying employments will probably pay a remunerating differential ? a. Waiter. b. Lawyer. c. Professor. e. Mine detonator. d. Insurance sales representative.

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Which of the accompanying occupations will probably pay a remunerating differential ? a. Waiter. b. Lawyer. c. Professor. e. Mine detonator. d. Insurance sales representative.

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How do riches and salary rate as measures of prosperity? a. We utilize riches and pay to gauge prosperity since they are great, coordinate measures of it. b. Wealth and salary are both backhanded, blemished measures of prosperity. c. Wealth is a superior measure of prosperity than pay. d. Income is a superior measure of prosperity than riches. e. We utilize riches and pay to gauge prosperity, at the same time, if fundamental, we could substitute them for different measures of prosperity that are similarly precise.

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How do riches and wage rate as measures of prosperity? a. We utilize riches and pay to gauge prosperity since they are great, coordinate measures of it. b. Wealth and salary are both circuitous, blemished measures of prosperity. c. Wealth is a superior measure of prosperity than wage. d. Income is a superior measure of prosperity than riches. e. We utilize riches and pay to gauge prosperity, in any case, if important, we could substitute them for different measures of prosperity that are similarly precise.

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The Sources of Household Income Wages and Salaries Multiple Household Incomes Another wellspring of wage disparity among family units lies in the way that numerous families have more than one worker in the work drive. Second, and even third, livelihoods are turning out to be more the govern than the special case for U.S. families.

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The Sources of Household Income Wages and Salaries The Minimum Wage Controversy the lowest pay permitted by law The most reduced wage that organizations are allowed to pay laborers.  FIGURE 18.2 Effect of Minimum Wage Legislation If the balance wage in the market for untalented work is underneath the enacted the lowest pay permitted by law, the outcome is probably going to be unemployment. The higher wage will draw in new participants to the work drive (amount provided will increment from L * to L S ), however firms will procure less specialists (amount requested will drop from L * to L D ).

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Refer to the figure underneath. After a lowest pay permitted by law of $5.15 is forced on this work advertise, which portion speaks to cutbacks? a. Segment A. b. Segment B. c. Sections An and B. d. The vertical separation amongst $4.00 and $5.15.

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Refer to the figure underneath. After a lowest pay permitted by law of $5.15 is forced on this work showcase, which fragment speaks to cutbacks? a. Segment A. b. Segment B. c. Sections An and B. d. The vertical separation amongst $4.00 and $5.15.

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The Sources of Household Income Wages and Salaries Unemployment harms basically the individuals who are laid off, and therefore its expenses are barely disseminated. For a few laborers, the expenses of unemployment are brought down by unemployment remuneration benefits paid out of a reserve collected with receipts from a duty on payrolls.

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The Sources of Household Income from property salary Income from the responsibility for property and budgetary possessions. It appears as benefits, intrigue, profits, and leases. Salary from the Government: Transfer Payments exchange installments Payments by government to individuals who don\'t supply products or administrations in return.

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The Distribution of Income monetary salary The measure of cash a family unit can spend amid a given period without expanding or diminishing its net resources. Compensation, pay rates, profits, intrigue pay, exchange installments, rents, thus on are wellsprings of monetary pay.

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The Distribution of Income Inequality in the United States

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In the United States, lately, which of the accompanying has been all the more uniformly circulated? a. Income from property. b. Income from wages and compensations. c. Income from exchange installments. d. Salary in general for the United States.

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In the United States, as of late, which of the accompanying has been all the more equitably disseminated? a. Income from property. b. Income from wages and compensations. c. Income from exchange installments. d. Salary all in all for the United States.

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The Distribution of Income Inequality in the United States Changes in the Distribution of Income cash salary The measure of wage utilized by the Census Bureau. Since cash salary bars noncash exchange installments and capital increases wage, it is less comprehensive than monetary wage.

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The Distribution of Income Inequality in the United States The Lorenz Curve and the Gini Coefficient Lorenz bend A generally utilized chart of the conveyance of salary, with total rate of families plotted along the flat hub and aggregate rate of wage plotted along the vertical hub. Gini coefficient A regularly utilized measure of the level of disparity of pay got from a Lorenz bend. It can run from 0 to a most extreme of 1.

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A Gini coefficient equivalent to zero means: a. An rise to dispersion of wage. b. The most unequal circulation of wage conceivable. c. A society where the circulation of pay can\'t be considered either level with nor unequal. d. Nothing from what was just mentioned. The Gini coefficient can never be zero.

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A Gini coefficient equivalent to zero means: a. An equivalent circulation of wage. b. The most unequal circulation of wage conceivable. c. A society where the circulation of wage can\'t be considered either square with nor unequal. d. Nothing unless there are other options. The Gini coefficient can never be zero.

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The Distribution of Income Inequality in the United States The Lorenz Curve and the Gini Coefficient  FIGURE 18.3 Lorenz Curve for the United States, 2006 The Lorenz bend is the most widely recognized method for showing pay dispersion graphically. The bigger the shaded range, the more unequal the dispersion. In the event that the dissemination were equivalent, the Lorenz bend would be the 45-degree line 0 A .

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Refer to the chart underneath. What occurs in this chart when society accomplishes an immaculate appropriation of salary? a. Area A vanishes. b. Area B vanishes. c. Area C vanishes. d. All regions get to be distinctly one. e. Nothing happens.

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Refer to the chart underneath. What occurs in this diagram when society accomplishes an impeccable circulation of wage? a. Area A vanishes. b. Area B vanishes. c. Area C vanishes. d. All ranges get to be distinctly one. e. Nothing happens.

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The Distribution of Income Inequality in the United States Differences Among African-American Households, White Households, and Single-Person Households

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The Distribution of Income The World Distribution of Income

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The Distribution of Income Causes of Increased Inequality The expanded salary imbalance we find in the United States and in numerous different areas has turned into the subject of much political level headed discussion. A significant part of the level headed discussion concerns what we as a country and as an individual from the world group ought to do to enhance the position of the poorest of our nationals. Is it the strengths of unhindered commerce, movement, and globalization all cooperating to exacerbate the position of the center salary laborers who wind up rivaling specialists in lower-wage nations? Is it the declining force of unions and deregulation that have opened up more work markets to the powers of rivalry?

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The Distribution of Income Causes of Increased Inequality The Evidence: The Net Costs of Immigration To figure out if the net advantages of migration exceed its net costs, we should make critical inquiry:

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