<___Answers__> Lorenz curve, food stamps, workfare, welfare, negative income tax
Income assistance, poverty threshold, Earned Income Tax Credit, discrimination
Monopoly power, enterprise zones, education
<questions>
Poverty is a relative measure that depends on prices, the standard of living, and the incomes that others
earn. People are living in poverty if their incomes fall below the 1
, even if
they have supplements such as food stamps, subsidized housing, and Medicaid. To evaluate the
distribution of income, economists use the 2
which shows how much the actual
distribution of income varies from an equal distribution.
Reasons for Income Inequality
A number of reasons explain why the incomes of various groups may be different. One is
3
which puts workers in a better position to get higher-paying jobs. The wealthy
can afford to send their children to expensive schools or set them up in a high-paying job. There are also
groups that hold 4
and are in a better position to demand higher wages.
Another factor is 5
which may favor some groups over others in hiring and
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