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Cards In This Set
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What do Americans regard as one of the most important problems facing the nation? Do Americans believe this issue is getting worse or better every year?
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Poverty, worse
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What is inequality? Why does it exist?
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Inequality is a complex subject, with many different dimensions to consider. The three theories that explain the existence of inequality are: restricted opportunity, big brother, and flawed character
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Why is it difficult to compare incomes?
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Differences in wealth, temporary versus permanent income, life cycle issues, public provision, unit of observation
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When measuring money income, what important concept should be considered?
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Social inequality - level of goods produced and who they are available to
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1. What are the demerits of inequality?2. What are the social consequences of inequality?
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1. social consequences, inequities, skewed distribution of political powers2. High crime rates, or too much allocation of its scarce resources to property protection, criminal justice and confinement
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How can inequality be viewed as positive?
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Incentive for investing in human capital, incentive in labor market, incentive to invest in capital market
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How is inequality measured?
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Income mobility, lorenz curve, gini coefficient, income shares, between group average
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What two units are used for observation when considering inequality? Define each.
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Household & family. Household is one or more persons living under the same roof. Family is people related by blood or marriage
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What are the causes of poverty?
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Big brother, restricted opportunities, flawed character
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