1) By using the quintiles, sum up in brief the degree of inequality of income in the United States. Explain the criticisms that have been made of the standard Census Bureau data on income inequality? Explain how and to which extent does the government provide some sort of contribution to the income equality?
2) Explain why the lifetime distribution of income is more equal as compared to the distribution in any specific year?
3) Discuss the major causes of income inequality in brief. With respect to the income inequality, explain if there is any kind of difference between the inheriting property and inheriting the high IQ?
4) Which factors should have contributed to high income inequality since the year 1969?
5) Use ‘leaky bucket analogy’ to discuss the efficiency of equality trade-off. Describe how welfare reform (TANF) has degraded the leak.
6) Explain should an income of nation be distributed to its members as per their contributions to the generation of that total income or to the requirement of members’ needs? Whether a society attempts to equalize the income or the economic opportunities? Whether issues of the equity and equality within the distribution of income synonymous? Up-To what degree, if any, is income inequality equitable?
7) Explain in detail: ‘There need to be no trade-off between the equality and efficiency. An “efficient” economy which generates an income distribution which many regard as the unfair may cause those with meager income rewards to become discouraged and stop trying. So, efficiency can be undermined. A fairer distribution of the rewards can produce a higher average productive effort on the part of population, thus improving the efficiency. If people consider that they are playing a fair economic game and this belief makes them to try harder, an economy having an equitable income distribution can be efficient as well.”