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• ## Related Books

 1 answerLast reply by: Professor Jibin ParkTue Apr 7, 2015 2:59 PMPost by Kim Gyu Min on April 7, 2015Thanks for the Micro Economics lecture professor. It really helped me a lot whether understanding the world and for the prepartaion for my ap test, Thank you. 0 answersPost by Rebecca Dai on November 12, 2014Are the sample multiple choice questions in micro econ course description on college board close to the real ap test? Thanks 0 answersPost by Rebecca Dai on November 10, 2014Are the sample multiple choice questions in micro econ course description on college board close to the real ap test? Thanks 1 answerLast reply by: Professor Jibin ParkTue May 13, 2014 12:36 PMPost by Richard Wolf on May 5, 2014Two questions:So any proportional/flat-rate tax that has a cap put on it (e.g. the \$100,000 for social security) would be henceforth categorized as a regressive tax?Will we need to know how to calculate the Gini coefficient?

### Income Inequality & Income Distribution

• 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.

• Intro 0:00
• Lesson Overview 0:10
• The Problem of Poverty 1:13
• Definition of Poverty
• Poverty Threshold
• Who are the Poor? 3:48
• 1 in 7 People in 2009
• Part-Time Workers
• What Causes Poverty? 6:14
• Lack of Education
• 1979 Average Hourly Wage
• Other Causes of Poverty
• Economic Inequality 9:09
• Mean Income and Median Income
• Income is Unequally Distributed
• Gini Coefficient 13:33
• Definition of Gini Coefficient
• High Levels of Inequality
• Gini Coefficient in the United States
• High Gini Levels
• Lorenz Curve
• United States Rates of Income Growth 17:27
• Three Types of Taxes 19:54
• Proportional Tax
• Regressive Tax
• Progressive Tax
• Means-Tested Programs 24:46
• Welfare
• Temporary Aid for Needy Families
• Supplemental Security Income
• Negative Income Tax
• Food Stamps and Medicaid
• Social Security and Unemployment 27:35
• Retirement Income
• Wages Taxed
• Unemployment Insurance