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A kingdom where only the king earns all income would have a Gini ratio of


A) 100.
B) 0.
C) 1.
D) 2.

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Some economists have criticized standard government figures on income inequality, arguing that these data


A) exclude households whose earnings arise in the public sector.
B) conceal the strong trend toward greater equality in household sizes.
C) conceal the growth of poverty due to a growing number of discouraged workers.
D) overstate the degree of income inequality by failing to include noncash transfers as income.

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The Supplemental Nutrition Assistance Program (SNAP)


A) was previously known as the food-stamp program.
B) added assistance to the food-stamp program by targeting children.
C) was created to supplement the food consumption of low-income Social Security recipients.
D) has been subject to widespread fraud through the illegal reproduction of paper food-stamp coupons.

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Which is a payment or wage subsidy made by the Federal government to offset Social Security taxes for low-income workers?


A) the food-stamp program
B) Supplement Security Income
C) the earned-income tax credit
D) Temporary Assistance to Needy Families

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