. Income inequality and the poverty rate The following table summarizes the income distribution for the town of Perkopia, which has a population of 10,000 people. Every individual within an ncome group earns the same income, and the total annual income in the economy is $500,000,000. Suppose that in 2007, the poverty line is set at an annual income of $42,350 for an individual. Year 2001 2007 2013 2019 Lowest Quintile 3.0 3.4 3.8 5.0 Share of Total Income in Perkopia (Percent) Second Quintile Middle Quintile Fourth Quintile Highest Quintile 8.6 9.4 9.7 11.0 The data in the table suggest that there was 14.0 14.6 15.2 15.5 21.9 22,4 22.9 25.0 52.5 50.2 48.4 43.5 income inequality from 2001 to 2019.
. Income inequality and the poverty rate The following table summarizes the income distribution for the town of Perkopia, which has a population of 10,000 people. Every individual within an ncome group earns the same income, and the total annual income in the economy is $500,000,000. Suppose that in 2007, the poverty line is set at an annual income of $42,350 for an individual. Year 2001 2007 2013 2019 Lowest Quintile 3.0 3.4 3.8 5.0 Share of Total Income in Perkopia (Percent) Second Quintile Middle Quintile Fourth Quintile Highest Quintile 8.6 9.4 9.7 11.0 The data in the table suggest that there was 14.0 14.6 15.2 15.5 21.9 22,4 22.9 25.0 52.5 50.2 48.4 43.5 income inequality from 2001 to 2019.
Chapter1: Making Economics Decisions
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Transcribed Image Text:1. Income inequality and the poverty rate
The following table summarizes the income distribution for the town of Perkopia, which has a population of 10,000 people. Every individual within an
Income group earns the same income, and the total annual income in the economy is $500,000,000. Suppose that in 2007, the poverty line is set at
an annual income of $42,350 for an individual.
Year
2001
2007
2013
2019
Lowest Quintile
3.0
3.4
3.8
5.0
Share of Total Income in Perkopia
(Percent)
Middle Quintile Fourth Quintile
21.9
22.4
Second Quintile
8.6
9.4
9.7
11.0
The data in the table suggest that there was
14.0
14.6
15.2
15.5
22.9
25.0
Highest Quintile
52.5
50.2
48,4
43.5
income inequality from 2001 to 2019.
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