In this lesson, our instructor Jibin Park gives an introduction on income inequality and income distribution. He discusses the problem of poverty, poverty threshold, the poor, causes of poverty, economic inequality, Gini coefficient, types of taxes, means-tested programs, social security, and unemployment.
Poverty threshold is considered the minimum income required to not be poor as determined by the government
About 1 in 7 people (in 2009) was considered poor in the United States.
Female-headed households were among the most likely to fall below the poverty threshold.
Mean incomes tend to be higher than median incomes because rich people will increase the mean higher than it will increase the median.
The Gini coefficient is the most widely used measure of inequality.
In countries with high levels of inequality, the Gini coefficient will be closer to 1.
In countries with low levels of inequality, the Gini coefficient will be closer to 0.
The three types of tax are proportional, regressive and progressive.
There are various types of welfare programs in the United States that attempt to achieve more economic equality at the expense of economic efficiency.
Income Inequality & Income Distribution
Lecture Slides are screen-captured images of important points in the lecture. Students can download and print out these lecture slide images to do practice problems as well as take notes while watching the lecture.
This book created a 5-step plan to help you study more effectively, use your preparation time wisely, and get your best score. This book includes two full-length practice exams modeled on the real test, all the terms and concepts you need to know to get your best score, and your choice of three customized study schedules.
This book includes an in-depth preparation for both AP economics exams. It features two full-length practice tests, one in Microeconomics and one in Macroeconomics, and all test questions answered and explained. It also features a detailed review of all test topics, which include: supply and demand, theory of consumer choice, economics in the public sector, costs, perfect and imperfect competition, monopolies, labor resources, game theory, the national income and gross domestic product, inflation and unemployment, fiscal policy, money and banking, monetary policy, economic growth, international trade and exchange, interest rate determination, and the market for loanable funds.