These Economics W.I.R.E.D. activities recommend web links that relate to key concepts of each chapter of the textbook. For each link, there are instructions to guide you to specific information, followed by several discussion questions or exercises.
Key Concepts: The
Tax System, Transfer Payments, The Distribution of Income in the United States
The Heritage Center for Data Analysis
Scroll down the page and survey the income inequality analysis information
featured in each chart (there are 14 charts). Review the current analysis of
income
quintiles.
- What percentage of total income is distributed to the bottom and top quintiles?
- Identify potential demographic and social factors that can help to explain
the current income inequality. (Hint: consider charts 9–12).
- Explain how progressive taxes can help to shift the Lorenz curve towards
the line of income equality.
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