by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is Income Inequality?Income inequality compares the share of the total income (or wealth) in society that different groups receive. For example, compare the share of income that the top 10% receive to the share of income that the bottom 10% receive.The labor...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is the Poverty Line?Poverty is measured by the number of people who fall below a certain level of income—called the poverty line—that defines the income one needs for a basic standard of living. The US poverty line has traditionally been based on the cost of a...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is the Public Safety Net?The U.S. government has implemented a number of programs to assist those below the poverty line and those who have incomes just above the poverty line, to whom we refer as the near-poor. Such programs are called the safety net, to...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
How to Measure Income Inequality?Measuring income inequality means dividing the population into various groups and then comparing the groups, a task that we can be carry out in several ways. Measuring Income Distribution by QuintilesOne common way of measuring income...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is the Lorenz Curve?The Lorenz Curve A Lorenz curve graphs the cumulative shares of income received by everyone up to a certain quintile. A Lorenz curve shows the cumulative share of population on the horizontal axis and the cumulative percentage of total income...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
How does New Technology give rise to Positive Externalities?Will private firms in a market economy underinvest in research and technology? If a firm builds a factory or buys a piece of equipment, the firm receives all the economic benefits that result from the...
