A group of 10 golfing friends have the following annual incomes: $32,000, $12,000, $56,000, $120,000, $10,000, $38,000, $70,000, $16,000, $20,000, $24,000. The share of income received by the third quintile of this income distribution is 14.9% 13.1% 14.1% 13.9%

A group of 10 golfing friends have the following annual incomes: $32,000, $12,000, $56,000, $120,000, $10,000, $38,000, $70,000, $16,000, $20,000, $24,000. The share of income received by the third quintile of this income distribution is 14.9% 13.1% 14.1% 13.9%

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Concept explainers

Comparative Advantage and Absolute Advantage Analysis

The theory of absolute advantage was given by Adam Smith in the year 1776.

Question

A group of 10 golfing friends have the following annual incomes: $32,000, $12,000,
$56,000, $120,000, $10,000, $38,000, $70,000, $16,000, $20,000, $24,000. The
share of income received by the third quintile of this income distribution is
14.9%
13.1%
14.1%
13.9%

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Step 1: Understand the Concept of Income Distribution and Quintiles

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Step 2: Arrange the Annual Incomes in Ascending Order

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Step 3: Divide the Incomes into Quintiles

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Step 4: Identify the Incomes in the Third Quintile

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Step 5: Calculate the Sum of the Third Quintile Incomes

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Step 6: Sum the Total Incomes of All Individuals

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Step 7: Calculate the Share of the Third Quintile

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