Officials in Jeffersonia 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. Fill in the missing values in the distribution table for families in Jeffersonia; then use the information in the table to answer the following questions. Income Distribution in 2005 (Percent) Income Distribution in 1990 Highest Quintile Second Quintile Third Quintile Fourth Quintile Lowest Quintile Highest Quintile 40 13 12 12 23 Second Quintile 21 35 12 18 Third Quintile 24 42 12 6 13 10 Fourth Quintile Lowest Quintile Looking at families in the lowest quintile of income in 1990 (bottom row), you can report that higher quintile of income distribution by 2005. 23 38 10 12 9 43 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 1990 and 2005. In each quintile, a of families moved to a different quintile. This implies that Jeffersonia has economic mobility.
Officials in Jeffersonia 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. Fill in the missing values in the distribution table for families in Jeffersonia; then use the information in the table to answer the following questions. Income Distribution in 2005 (Percent) Income Distribution in 1990 Highest Quintile Second Quintile Third Quintile Fourth Quintile Lowest Quintile Highest Quintile 40 13 12 12 23 Second Quintile 21 35 12 18 Third Quintile 24 42 12 6 13 10 Fourth Quintile Lowest Quintile Looking at families in the lowest quintile of income in 1990 (bottom row), you can report that higher quintile of income distribution by 2005. 23 38 10 12 9 43 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 1990 and 2005. In each quintile, a of families moved to a different quintile. This implies that Jeffersonia has economic mobility.
Chapter1: Making Economics Decisions
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Transcribed Image Text:Officials in Jeffersonia 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.
Fill in the missing values in the distribution table for families in Jeffersonia; then use the information in the table to answer the following questions.
Income Distribution in 2005
(Percent)
Income Distribution in 1990
Highest Quintile Second Quintile
Third Quintile Fourth Quintile
Lowest Quintile
Highest Quintile
40
13
12
12
23
Second Quintile
21
35
12
18
Third Quintile
24
42
12
6
13
10
Fourth Quintile
Lowest Quintile
Looking at families in the lowest quintile of income in 1990 (bottom row), you can report that
higher quintile of income distribution by 2005.
23
38
10
12
9
43
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 1990 and 2005. In each quintile, a
of families moved to a different quintile. This implies that Jeffersonia has
economic mobility.
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