Chapter 18 Flashcards
(12 cards)
What is a quintile?
20% of the households
What is the Lorenz Curve?
CUrve that shows cumulative shares of income received by individuals or groups
Where would the Lorenz curve be if every household received the same income?
The Lorenz curve would be a 45-degree line
Where would the Lorenz curve be if every income was completely unequal?
The Lorenz curve would be a backwards L
What is the Gini coefficient?
measure of inequality expressed as the ratio of the area between the Lorenz curve and the 45-degree line and the total under
What is the absolute income test?
income test that sets specific income lvl and defines a person as poor if income is below
What is the relative income test?
test in which people whose incomes fall at the bottom of the income distribution are poor
What is the poverty line?
amount of annual income below which the fed defines a household poor
What is the poverty rate?
Percent of population below poverty line
What are welfare programs?
programs that gov provides to alleviate poverty
What is cash assistance?
money pmt that an aid recipient can spend as wished
What is noncash assistance?
provision of goods and srvcs
