Chapter 20 - Income, Inequality, and Poverty

Libertarians

________ evaluate the economic outcomes by observing the process where these outcomes arrive.

Utilitarians

________ do not expect complete equality because of incentives, and how people respond to them.

Supplemental Nutrition Assistance Program

________ (SNAP) gives plastic cards that buy food at stars.

SNAP

Welfare, Medicaid, ________, and EITC are all programs aimed to help the poor but are tied to a lower family income.

Supplemental Security Income

________ (SSI) helps those who are sick and disabled.

Poverty

________ is correlated with race, age, and family composition.

Life cycle

________: The regular pattern of income variation, where income rises, peaks at age 50 and falls at a retiring age of 65.

Liberalism

________ aims to maximize the minimum utility or raise the poverty line.

Utility

________: the level of happiness or satisfaction a person receives from their decisions.

Economic mobility

________ depends on luck and work.

Welfare

________: government programs that supplement the incomes of the needy.

Social insurance

________: government policy aimed at protecting people against the risk of adverse events Libertarianism.

Quintiles

________: when a statistical group is divided into five equal groups.

material standards of living

Inequality in ________ is lesser than inequality in annual income.

annual incomes

Family ________ do not measure the standard of living.

Minimum wage

________ helps the working poor without costing the government, but others view it to hurt those who it intends to help.

Temporary Assistance for Needy Families

________ (TANF) assists families with children but no adult able to support the family.

Poverty line

________: 3x the cost of providing a fulfilling diet, set by the federal government.

marginal utility

Redistributing income is based on diminishing ________.

Permanent income

________ and consumption are less affected by transitory changes.

Maximin criterion

________: the claim that the government should aim to maximize the well- being of the worst- off person in society.

persons wage

A(n) ________ depends on the supply and demand for the persons labor.

poor person

A(n) ________ will benefit more from $ 1 than a rich person.

Poverty

________ is one of the most difficult problems that politics has to face.

Utilitarians

________ use individual decisions to question bigger issues dealing with morality and public policy.

Economic mobility

________: the movement of people between income classes.

Liberalism

________: the political philosophy according to which the government should choose policies deemed as just, as evaluated by an impartial observer behind a "veil of ignorance.

Utilitarianism

________: the political philosophy according to which the government should choose policies to maximize the total utility of everyone in society.