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Economics , Fifth Edition
William Boyes, Arizona State University
Michael Melvin, Arizona State University
Glossary
Chapter 34: Income Distribution, Poverty, and Government Policy



cash transfers  money allocated away from one group in society to another
Gini ratio  a measure of the dispersion of income ranging between 0 and 1: 0 means all families have the same income; 1 means 1 family has all of the income
in-kind transfers  allocations of goods and services from one group in society to another
Lorenz curve  a curve measuring the degree of inequality of income distribution within a society
negative income tax(NIT)  a tax system that transfers increasing amounts of income to households earning incomes below some specified level as their income declines
progressive tax (progressive income tax)  a tax whose rate rises as income rises
proportional tax  a tax whose rate does not change as the tax base changes
regressive tax  a tax whose rate decreases as the tax base changes


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