Please complete the table and answer questions 1-5A group of 10 people have the following annual incomes: $55,000, $30,000, $15,000, $20,000, $35,000, $80,000, $40,000, $45,000, $30,000, $50,000. Complete the table. IncomeQuintileShare of Income$15,000Bottom $20,000$30,0002nd $30,000$35,0003rd $40,000$45,0004th $50,000$55,000Top $80,000 If $4000 is taxed from the top earner and transferred to the lowest earner, would that increase or decrease the share of income held by the top quintile?Would this transfer increase or decrease the share of income held by the bottom quintile?Would this have any effect on the 2nd quintile? The 3rd? The 4th?Would this transfer increase, decrease, or have no effect on income inequality in this group?Redistributing income from the highest earner to the lowest one would reduce the utility of the top earner and increase the utility of the lowest earner. But what would happen to overall utility in the economy? Would it increase, decrease, or remain the same? Explain your answer. (Hint: does the marginal utility of income diminish as one earns more?)

Based on a nation's total income levels, the definition of poverty might vary; often, it is…

Answered: A group of 10 people have the following…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Please complete the table and answer questions 1-5

A group of 10 people have the following annual incomes: $55,000, $30,000, $15,000, $20,000, $35,000, $80,000, $40,000, $45,000, $30,000, $50,000. Complete the table.

Income	Quintile	Share of Income
$15,000	Bottom
$20,000
$30,000	2^nd
$30,000
$35,000	3^rd
$40,000
$45,000	4^th
$50,000
$55,000	Top
$80,000

If $4000 is taxed from the top earner and transferred to the lowest earner, would that increase or decrease the share of income held by the top quintile?
Would this transfer increase or decrease the share of income held by the bottom quintile?
Would this have any effect on the 2^nd quintile? The 3^rd? The 4^th?
Would this transfer increase, decrease, or have no effect on income inequality in this group?
Redistributing income from the highest earner to the lowest one would reduce the utility of the top earner and increase the utility of the lowest earner. But what would happen to overall utility in the economy? Would it increase, decrease, or remain the same? Explain your answer. (Hint: does the marginal utility of income diminish as one earns more?)

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Would this transfer increase, decrease, or have no effect on income inequality in this group?
Redistributing income from the highest earner to the lowest one would reduce the utility of the top earner and increase the utility of the lowest earner. But what would happen to overall utility in the economy? Would it increase, decrease, or remain the same? Explain your answer. (Hint: does the marginal utility of income diminish as one earns more?)

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Would this transfer increase, decrease, or have no effect on income inequality in this group?
Redistributing income from the highest earner to the lowest one would reduce the utility of the top earner and increase the utility of the lowest earner. But what would happen to overall utility in the economy? Would it increase, decrease, or remain the same? Explain your answer. (Hint: does the marginal utility of income diminish as one earns more?)

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by Bartleby Expert

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