The income inequality in the US.

Question

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Answer 1

Question

Chapter 23, Problem 1DQ

To determine

The income inequality in the US.

Expert Solution & Answer

Explanation of Solution

Table -1 shows the distribution of US income by households in 2008:

Table -1

Personal Income Category	Percentage of all households in this category
Under $10,000	7.1
$10,000-$14,999	5.8
$15,000-$24,999	11.8
$25,000-$34,999	10.9
$35,000-$49,999	14.0
$50,000-$99,999	17.9
$100,000 and above	11.9
	20.5
	100.0

As per table -1, the highest 20% have received an income share of 50% in 2008. This is ten times more than the 3.4% than the lowest 20% received. The three quintiles in the middle get less that 50% of the total income before tax. When we combine the bottom three quintiles on top of two quintiles that receive almost twice of them. So, the fact is that the top to 20% are receiving as much as 80% at the bottom.

The government's effect on the income distribution happens through taxes and transfer payments. It has a slightly progressive effect of federal, state, and local taxes on distribution of income as people with a high income have a pay of a higher percentage of their income in taxes when compared to people with a lower income. The main contribution of the government for income equality happens through transfer programs i.e. 80% of the times. The benefit of this contribution goes mainly to people in the lowest quintile where 75% of the income that these people earn is through government transfer payments.

Though these statistics may suggest that the government is contributing heavily to equalize the income, it might be all correct. As the transfer programs provided to people with a lower income decrease the incentive to work so the income earned will be further down. Also, not all these transfer programs got to the poor. For example, in case of subsidies, farming always goes to the farmers that are wealthy. Middle and higher class students get the benefit of education funding by the government than the ones with a lower income.

Economics Concept Introduction

Concept Introduction:

Income inequality: It is the unequal distribution of a household or an individual income across the various participants in an economy.

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Students have asked these similar questions

Which would be evidence of an increase in income inequality over time in the United States? O a decrease in the percentage of total personal income received by the highest quintile O an increase in the percentage of total personal income received by the highest quintile O an increase in the percentage of total personal income received by the four lowest quintiles O an increase in the percentage of total personal income received by the lowest quintile

%24 A household with income that is two-thirds of the poverty threshold has ratio of income to poverty of O 0.67. O 1.50. O 3.20. O0.23. Unit 7- Chapter 1..xlsx 0Unit 7- Chapter 1..xlsx Topic 2 (2).docx Topic 2 (1).docx 11:07 PM 73 F ENG 自 ins prt sc delete f12 pue LL3 114 SI unu backspace -> bock 7. 5. 55 enter () H. pause * shift ctrl

As income transfer programs accompanying the War on Poverty increased beginning in the latter half of the 1960s, what happened to poverty in the United States? Check all that apply. O The adjusted poverty rate has declined rapidly and is now less than half of the official poverty rate. O The poverty rate declined substantially in the period before the War on Poverty, but not in the period after the start of the War on Poverty. O In 2018, the adjusted poverty rate was only 4 percentage points lower than the official rate in 1970. O The War on Poverty has been largely ineffective in reducing the rate of poverty in the United States.

Answer 2

Question

Chapter 23, Problem 1DQ

To determine

The income inequality in the US.

Expert Solution & Answer

Explanation of Solution

Table -1 shows the distribution of US income by households in 2008:

Table -1

Personal Income Category	Percentage of all households in this category
Under $10,000	7.1
$10,000-$14,999	5.8
$15,000-$24,999	11.8
$25,000-$34,999	10.9
$35,000-$49,999	14.0
$50,000-$99,999	17.9
$100,000 and above	11.9
	20.5
	100.0

As per table -1, the highest 20% have received an income share of 50% in 2008. This is ten times more than the 3.4% than the lowest 20% received. The three quintiles in the middle get less that 50% of the total income before tax. When we combine the bottom three quintiles on top of two quintiles that receive almost twice of them. So, the fact is that the top to 20% are receiving as much as 80% at the bottom.

The government's effect on the income distribution happens through taxes and transfer payments. It has a slightly progressive effect of federal, state, and local taxes on distribution of income as people with a high income have a pay of a higher percentage of their income in taxes when compared to people with a lower income. The main contribution of the government for income equality happens through transfer programs i.e. 80% of the times. The benefit of this contribution goes mainly to people in the lowest quintile where 75% of the income that these people earn is through government transfer payments.

Though these statistics may suggest that the government is contributing heavily to equalize the income, it might be all correct. As the transfer programs provided to people with a lower income decrease the incentive to work so the income earned will be further down. Also, not all these transfer programs got to the poor. For example, in case of subsidies, farming always goes to the farmers that are wealthy. Middle and higher class students get the benefit of education funding by the government than the ones with a lower income.

Economics Concept Introduction

Concept Introduction:

Income inequality: It is the unequal distribution of a household or an individual income across the various participants in an economy.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 23, Problem 1DQ

To determine

The income inequality in the US.

Expert Solution & Answer

Explanation of Solution

Table -1 shows the distribution of US income by households in 2008:

Table -1

Personal Income Category	Percentage of all households in this category
Under $10,000	7.1
$10,000-$14,999	5.8
$15,000-$24,999	11.8
$25,000-$34,999	10.9
$35,000-$49,999	14.0
$50,000-$99,999	17.9
$100,000 and above	11.9
	20.5
	100.0

As per table -1, the highest 20% have received an income share of 50% in 2008. This is ten times more than the 3.4% than the lowest 20% received. The three quintiles in the middle get less that 50% of the total income before tax. When we combine the bottom three quintiles on top of two quintiles that receive almost twice of them. So, the fact is that the top to 20% are receiving as much as 80% at the bottom.

The government's effect on the income distribution happens through taxes and transfer payments. It has a slightly progressive effect of federal, state, and local taxes on distribution of income as people with a high income have a pay of a higher percentage of their income in taxes when compared to people with a lower income. The main contribution of the government for income equality happens through transfer programs i.e. 80% of the times. The benefit of this contribution goes mainly to people in the lowest quintile where 75% of the income that these people earn is through government transfer payments.

Though these statistics may suggest that the government is contributing heavily to equalize the income, it might be all correct. As the transfer programs provided to people with a lower income decrease the incentive to work so the income earned will be further down. Also, not all these transfer programs got to the poor. For example, in case of subsidies, farming always goes to the farmers that are wealthy. Middle and higher class students get the benefit of education funding by the government than the ones with a lower income.

Economics Concept Introduction

Concept Introduction:

Income inequality: It is the unequal distribution of a household or an individual income across the various participants in an economy.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 23, Problem 1DQ

To determine

The income inequality in the US.

Expert Solution & Answer

Explanation of Solution

Table -1 shows the distribution of US income by households in 2008:

Table -1

Personal Income Category	Percentage of all households in this category
Under $10,000	7.1
$10,000-$14,999	5.8
$15,000-$24,999	11.8
$25,000-$34,999	10.9
$35,000-$49,999	14.0
$50,000-$99,999	17.9
$100,000 and above	11.9
	20.5
	100.0

As per table -1, the highest 20% have received an income share of 50% in 2008. This is ten times more than the 3.4% than the lowest 20% received. The three quintiles in the middle get less that 50% of the total income before tax. When we combine the bottom three quintiles on top of two quintiles that receive almost twice of them. So, the fact is that the top to 20% are receiving as much as 80% at the bottom.

The government's effect on the income distribution happens through taxes and transfer payments. It has a slightly progressive effect of federal, state, and local taxes on distribution of income as people with a high income have a pay of a higher percentage of their income in taxes when compared to people with a lower income. The main contribution of the government for income equality happens through transfer programs i.e. 80% of the times. The benefit of this contribution goes mainly to people in the lowest quintile where 75% of the income that these people earn is through government transfer payments.

Though these statistics may suggest that the government is contributing heavily to equalize the income, it might be all correct. As the transfer programs provided to people with a lower income decrease the incentive to work so the income earned will be further down. Also, not all these transfer programs got to the poor. For example, in case of subsidies, farming always goes to the farmers that are wealthy. Middle and higher class students get the benefit of education funding by the government than the ones with a lower income.

Economics Concept Introduction

Concept Introduction:

Income inequality: It is the unequal distribution of a household or an individual income across the various participants in an economy.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 23, Problem 1DQ

To determine

The income inequality in the US.

Expert Solution & Answer

Explanation of Solution

Table -1 shows the distribution of US income by households in 2008:

Table -1

Personal Income Category	Percentage of all households in this category
Under $10,000	7.1
$10,000-$14,999	5.8
$15,000-$24,999	11.8
$25,000-$34,999	10.9
$35,000-$49,999	14.0
$50,000-$99,999	17.9
$100,000 and above	11.9
	20.5
	100.0

As per table -1, the highest 20% have received an income share of 50% in 2008. This is ten times more than the 3.4% than the lowest 20% received. The three quintiles in the middle get less that 50% of the total income before tax. When we combine the bottom three quintiles on top of two quintiles that receive almost twice of them. So, the fact is that the top to 20% are receiving as much as 80% at the bottom.

The government's effect on the income distribution happens through taxes and transfer payments. It has a slightly progressive effect of federal, state, and local taxes on distribution of income as people with a high income have a pay of a higher percentage of their income in taxes when compared to people with a lower income. The main contribution of the government for income equality happens through transfer programs i.e. 80% of the times. The benefit of this contribution goes mainly to people in the lowest quintile where 75% of the income that these people earn is through government transfer payments.

Though these statistics may suggest that the government is contributing heavily to equalize the income, it might be all correct. As the transfer programs provided to people with a lower income decrease the incentive to work so the income earned will be further down. Also, not all these transfer programs got to the poor. For example, in case of subsidies, farming always goes to the farmers that are wealthy. Middle and higher class students get the benefit of education funding by the government than the ones with a lower income.

Economics Concept Introduction

Concept Introduction:

Income inequality: It is the unequal distribution of a household or an individual income across the various participants in an economy.

Answer 6

Chapter 23, Problem 1DQ

To determine

The income inequality in the US.

Expert Solution & Answer

Explanation of Solution

Table -1 shows the distribution of US income by households in 2008:

Table -1

Personal Income Category	Percentage of all households in this category
Under $10,000	7.1
$10,000-$14,999	5.8
$15,000-$24,999	11.8
$25,000-$34,999	10.9
$35,000-$49,999	14.0
$50,000-$99,999	17.9
$100,000 and above	11.9
	20.5
	100.0

As per table -1, the highest 20% have received an income share of 50% in 2008. This is ten times more than the 3.4% than the lowest 20% received. The three quintiles in the middle get less that 50% of the total income before tax. When we combine the bottom three quintiles on top of two quintiles that receive almost twice of them. So, the fact is that the top to 20% are receiving as much as 80% at the bottom.

The government's effect on the income distribution happens through taxes and transfer payments. It has a slightly progressive effect of federal, state, and local taxes on distribution of income as people with a high income have a pay of a higher percentage of their income in taxes when compared to people with a lower income. The main contribution of the government for income equality happens through transfer programs i.e. 80% of the times. The benefit of this contribution goes mainly to people in the lowest quintile where 75% of the income that these people earn is through government transfer payments.

Though these statistics may suggest that the government is contributing heavily to equalize the income, it might be all correct. As the transfer programs provided to people with a lower income decrease the incentive to work so the income earned will be further down. Also, not all these transfer programs got to the poor. For example, in case of subsidies, farming always goes to the farmers that are wealthy. Middle and higher class students get the benefit of education funding by the government than the ones with a lower income.

Economics Concept Introduction

Concept Introduction:

Income inequality: It is the unequal distribution of a household or an individual income across the various participants in an economy.

Answer 7

Chapter 23, Problem 1DQ

To determine

The income inequality in the US.

Answer 8

Expert Solution & Answer

Explanation of Solution

Table -1 shows the distribution of US income by households in 2008:

Table -1

Personal Income Category	Percentage of all households in this category
Under $10,000	7.1
$10,000-$14,999	5.8
$15,000-$24,999	11.8
$25,000-$34,999	10.9
$35,000-$49,999	14.0
$50,000-$99,999	17.9
$100,000 and above	11.9
	20.5
	100.0

As per table -1, the highest 20% have received an income share of 50% in 2008. This is ten times more than the 3.4% than the lowest 20% received. The three quintiles in the middle get less that 50% of the total income before tax. When we combine the bottom three quintiles on top of two quintiles that receive almost twice of them. So, the fact is that the top to 20% are receiving as much as 80% at the bottom.

The government's effect on the income distribution happens through taxes and transfer payments. It has a slightly progressive effect of federal, state, and local taxes on distribution of income as people with a high income have a pay of a higher percentage of their income in taxes when compared to people with a lower income. The main contribution of the government for income equality happens through transfer programs i.e. 80% of the times. The benefit of this contribution goes mainly to people in the lowest quintile where 75% of the income that these people earn is through government transfer payments.

Though these statistics may suggest that the government is contributing heavily to equalize the income, it might be all correct. As the transfer programs provided to people with a lower income decrease the incentive to work so the income earned will be further down. Also, not all these transfer programs got to the poor. For example, in case of subsidies, farming always goes to the farmers that are wealthy. Middle and higher class students get the benefit of education funding by the government than the ones with a lower income.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Economics Concept Introduction

Concept Introduction:

Income inequality: It is the unequal distribution of a household or an individual income across the various participants in an economy.

Answer 12

Ch. 23 - Prob. 1DQ Ch. 23 - Prob. 2DQ Ch. 23 - Prob. 3DQ Ch. 23 - Prob. 4DQ Ch. 23 - Prob. 5DQ Ch. 23 - Prob. 6DQ Ch. 23 - Prob. 7DQ Ch. 23 - Prob. 8DQ Ch. 23 - Prob. 9DQ Ch. 23 - Prob. 10DQ

The income inequality in the US.

The income inequality in the US.

Explanation of Solution

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