Module14: Poverty and Economic Inequality

This chapter explores how the U.S. government defines poverty, the balance between assisting the poor without discouraging work, and how federal antipoverty programs work. It also discusses income inequality—how economists measure inequality, why inequality has changed in recent decades, the range of possible government policies to reduce inequality, and the danger of a tradeoff that too great a reduction in inequality may reduce incentives for producing output.

1. Explain economic inequality and how the poverty line is determined
2. Analyze the U.S. poverty rate over time, noting its prevalence among different groups of citizens
3. Explain the poverty trap, noting how government programs impact it
4. Identify potential issues in government programs that seek to reduce poverty
5. Calculate a budget constraint line that represents the poverty trap
6. Identify the antipoverty government programs that comprise the safety net
7. Explain the safety net programs' primary goals and how these programs have changed over time
8. Discuss the complexities of these safety net programs and why they can be controversial
9. Explain the distribution of income, and analyze the sources of income inequality in a market economy
10. Measure income distribution in quintiles
11. Calculate and graph a Lorenz curve
12. Show income inequality through demand and supply diagrams
13. Explain the arguments for and against government intervention in a market economy
14. Identify beneficial ways to reduce the economic inequality in a society
15. Show the tradeoff between incentives and income equality

To achieve these objectives: [Edit these items to match your resources and activities.]

1. Read the Module 14 Introduction 
   
2. Read Chapter 14 in the course textbook, Microeconomics.
3. Complete Module 14 Discussion Forum.
4. Complete 14 Quiz.
   
5. For course instructors, list any other reading assignments here. [Include all reading assignments here that are outside of Moodle. Be as concise as possible. More information can be included in the third-party section below, if necessary.]
   
6. Complete the [specific activities in the module. Include all in the order you want them completed.]

Module Pressbooks Resources and Activities