Officials in fluxemburg are concerned about the current level of income inequality in their country, where the highest quintile of families currently earns 60% of the country's income. The central government has income information on its citizenry, and they want you to help them interpret the data from a 15-year period. The following table gives data on how families have moved between income quintiles between the years shown. ral in the missing values in the distribution table for familles in Fluxemburg; then use the information in the table to answer the following questions. Income Distribution in 2007 (Percent) Third Quintile Fourth Quintile Lowest Quintile Income Distribution in 1992 Highest Quintile Second Quintile Highest Quintile Second Quintile Third Quintile Fourth Quintile Lowest Quintile 65 12 13 51 18 8 12 -0* 52 Looking at families in the lowest quintile of income in 1992 (bottom row), you can report that higher quintile of income distribution by 2007. 6 10 16 57 11 5 14 66 %of families in the lowest quintile moved into a Now look at the percentage of families in each quintile that remained in the same quintile between 1992 and 2007. In each quintile, a of families moved to a different quintile. This implies that Fluxemburg has economic mobility.
Officials in fluxemburg are concerned about the current level of income inequality in their country, where the highest quintile of families currently earns 60% of the country's income. The central government has income information on its citizenry, and they want you to help them interpret the data from a 15-year period. The following table gives data on how families have moved between income quintiles between the years shown. ral in the missing values in the distribution table for familles in Fluxemburg; then use the information in the table to answer the following questions. Income Distribution in 2007 (Percent) Third Quintile Fourth Quintile Lowest Quintile Income Distribution in 1992 Highest Quintile Second Quintile Highest Quintile Second Quintile Third Quintile Fourth Quintile Lowest Quintile 65 12 13 51 18 8 12 -0* 52 Looking at families in the lowest quintile of income in 1992 (bottom row), you can report that higher quintile of income distribution by 2007. 6 10 16 57 11 5 14 66 %of families in the lowest quintile moved into a Now look at the percentage of families in each quintile that remained in the same quintile between 1992 and 2007. In each quintile, a of families moved to a different quintile. This implies that Fluxemburg has economic mobility.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Transcribed Image Text:Officials in fluxemburg are concerned about the current level of income inequality in their country, where the highest quintile of families currently
earns 60% of the country's income. The central government has income information on its citizenry, and they want you to help them interpret the data
from a 15-year period.
The following table gives data on how families have moved between income quintiles between the years shown.
ral in the missing values in the distribution table for familles in Fluxemburg; then use the information in the table to answer the following questions.
Income Distribution in 2007
(Percent)
Third Quintile Fourth Quintile Lowest Quintile
Income Distribution in 1992 Highest Quintile Second Quintile
Highest Quintile
Second Quintile
Third Quintile
Fourth Quintile
Lowest Quintile
65
12
13
51
18
8
12
-0*
52
Looking at families in the lowest quintile of income in 1992 (bottom row), you can report that
higher quintile of income distribution by 2007.
6
10
16
57
11
5
14
66
%of families in the lowest quintile moved into a
Now look at the percentage of families in each quintile that remained in the same quintile between 1992 and 2007. In each quintile, a
of families moved to a different quintile. This implies that Fluxemburg has
economic mobility.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education