Please all solve the question Question 6Suppose the relationship between parent and child rank in the income distribution is given byRank_child = 20 + 0.5 Rank_parent.If Sarah's parents' rank is at the 90th percentile what is her predicted position in the incomedistribution?O 65th percentileO 90th percentileO 20th percentileO 50th percentileQuestion 7Suppose the relationship between parent and child rank in the income distribution is given byRank_child = 20 + 0.5 Rank_parent.If Sarah's parents' rank is at the 10th percentile what is her predicted position in the incomedistribution?O 50th percentileO 10th percentileO 70th percentileO 25th percentileQuestion 8Suppose the relationship between parent and child rank in the income distribution is given byRank_child = 20 + 0.5 Rank_parent.Further, suppose that the average rank for people who identify as part of group A is the 60thpercentile while the average rank of those who identify as part of group B is the 30thpercentile.How much of this 30 percentile gap in ranking remains after 2 generations, i.e. for the grandkidgeneration?O 50%O 75%O 20%O 25%Question 9Suppose the relationship between parent and child rank in the income distribution is given byRank_child = 20 + 0.5 Rank_parent for group A and by Rank_child = 10 + 0.5 Rank_parent forgroup B.Further, suppose that the average rank for people of group A is the 60th percentile while theaverage rank of group B is the 30th percentile. How much of this 30 percentile gap in rankingremains after 2 generations, i.e. for the grandkid generation?O 75%O 10%O 25%O 50%Question 10What is the Gap between Black parents percentile rank and White parents percentile rank that RajChetty and his collaborators estimate?O 11.4 percentilesO 34.2 percentilesO 3.5 percentilesO 25.2 percentileso o o O >Question 1Intergenerational mobility considers children's outcomes conditional on their parents' position inthe income distribution. Raj Chetty and his collaborators study the intergenerational mobility ofchildren born between 1978 and 1983 used the following data:O Survey data from the Bureau of labor Statistics combined with distributional national accountsO Survey data from the Pew Charitable Trusts project on income disparitiesO Data collected by the middle class project at the Brookings institution combined with Census dataO federal income tax returns of parents and children combined with data from the Census BureauQuestion 2Intergenerational mobility considers children's outcomes conditional on their parents' position inthe income distribution. Researchers analyzed intergenerational mobility for many locations acrossthe United States, they found, for example thatO Poor children in Salt Lake City, UT are less likely to move up in the income distribution than poor children inCharlotte, NCO Poor children in Salt Lake City, UT and poor children in Charlotte, NC have about the same chance to moveto the top of the income distribution.O Poor children in Salt Lake City, UT and poor children in Charlotte, NC move down in the income distributionat the same rate.O Poor children in Salt Lake City, UT are more likely to move up in the income distribution than poor childrenin Charlotte, NCQuestion 3Intergenerational mobility considers children's outcomes conditional on their parents' position inthe income distribution. Researchers have found the following facts about the intergenerationalmobility of children born between 1978 and 1983:O Children born in the lower quarter of the distribution do better in places that have a more unequal incomedistributionO Children born in the lower quarter of the distribution do worse in places that are located in the North Westof the United StatesO Children born in the lower quarter of the distribution do worse in places that are more segregated by incomeand raceO Children born in the lowquarter of the distribution do better in places that have higher job growthQuestion 4When you are at the 80th percentile of the income distribution this means thatO 20% of people are poorer than you.O You have 80% of mean income.O 80% of individuals have more money than you do.O 80% of individuals have less money than you do.Question 5Raj Chetty then ranked parents in the parent income distribution and ranked children in thechildren's income distribution and estimated a linear function linking parent rank to child rank suchas: Rank_child = intercept + slope X Rank_parent.Using data from all racial, ethnic, and gender groups, what is the estimated slope?O 0.05O 0.35O 0.55O 0.20O o o

Given: Rank child = 20 + 0.5(rank parent)

Question 6 Suppose the relationship between parent and child rank in the income distribution is given by Rank_child = 20+ 0.5 Rank_parent. If Sarah's parents' rank is at the 90th percentile what is her predicted position in the income distribution? O 65th percentile O 90th percentile O 20th percentile O 50th percentile Question 7 Suppose the relationship between parent and child rank in the income distribution is given by Rank_child = 20 + 0.5 Rank_parent. If Sarah's parents' rank is at the 10th percentile what is her predicted position in the income distribution?

Question 6 Suppose the relationship between parent and child rank in the income distribution is given by Rank_child = 20+ 0.5 Rank_parent. If Sarah's parents' rank is at the 90th percentile what is her predicted position in the income distribution? O 65th percentile O 90th percentile O 20th percentile O 50th percentile Question 7 Suppose the relationship between parent and child rank in the income distribution is given by Rank_child = 20 + 0.5 Rank_parent. If Sarah's parents' rank is at the 10th percentile what is her predicted position in the income distribution?

Microeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506893

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter15: Income Inequality And Poverty

Section: Chapter Questions

Problem 3CQ

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