micro econ final_Inequality

14 cards·by stierdaniel

Absolute inequality

differences

Relative Inequality

Ratios

income

gives actual economic power

expenditures

gives standard of living

lorenz curve

expresses the realtionship between cumulative percentage of households and cumulative percentage of income

Gini coefficient

a measurement of the degree of inequality in the income distribution

equal to the area between line of perfect equality and actual lorenz curve, divided by entire triangular

gini coefficient

poverty rate

percentage of the population whose family income falls below an absoulte line

poverty line

absolute level of income set by the governement for each family size, below is poverty

utilitarianism

government should choose policies to maximize the total utility of everyone in society

liberalism

government should chose policies deemed just as evealuated by an impartial observer behind a veil of ignorance

maximin criterion

government aim to max well being of the worst off in society

libertarianism

government should punish crimes and enfore voluntary agreements

in kind transfers

provide poor people directly with some of the goods and services they need to raise theirliving standards (food stamps)