Chapter 20

the percentage of the population whose family income falls below an absolute level called the poverty line

an absolute level of income set by the federal government for each family size below which a family is deemed to be in poverty

transfers to the poor given in the form of goods and services rather than cash

the regular pattern of income variation over a person's life

a person's normal income

the political philosophy according to which the government should choose policies that maximize total utility of everyone in society

a measure of happiness or satisfaction

the political philosophy according to which the government should choose policies deemed to be just, as evaluated by an impartial observer behind a "veil of ignorance"

the claim that the government should aim to maximize the well-being of the worst-off person in the economy

the political philosophy according to which the government should punish crimes and enforce voluntary agreements but not redistribute income

government programs that supplement the incomes of the needy

a tax system that collects revenue from high-income households and gives transfers to low-income households