Some economists have criticized standard government figures on income inequality, arguing that these data: 1. exclude households whose earnings arise in the public sector.
2. conceal the strong trend toward greater equality in household sizes.
3. conceal the growth of poverty due to a growing number of discouraged workers.
4. overstate the degree of income inequality by failing to include noncash transfers as income.
Which of the following would likely reduce income inequality?
a. A reduction in the number of high school dropouts.
b. A reduction in social security benefits.
c. Greater inequality in the distribution of wealth.
d. More stringent requirements to obtain occupational licenses.
Wealth in the United States is:.
a. distributed in a way that reduces the degree of income inequality.
b. more unequally distributed than is income.
c. less unequally distributed than is income.
d. distributed in a way that has no effect on income inequality.
Which of the following groups has the lowest poverty rate?
a. married-couple families.
b. whites.
c. foreign-born (not citizens).
d. African-Americans.