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