The following table summarizes the income distribution for the town of Perkopia, which has a population of 10,000 people. Every individual within an income group earns the same income, and the total annual income in the economy is $500,000,000. Suppose that in 2010, the poverty income threshold, or poverty line, is set at an annual income of $42,350 for an individual. Year 2006 2010 2016 2020 Lowest Quintile Second Quintile 3.0 3.4 3.8 5.0 Share of Total Income in Perkopia (Percent) 8.6 9.4 9.7 11.0 The data in the table suggest that there was Middle Quintile Fourth Quintile no evidence of an increase in 14.0 14.6 15.2 15.5 21.9 22.4 22.9 25.0 Highest Quintile 52.5 50.2 48.4 43.5 income inequality from 2006 to 2020. Complete the following table to help you dete a decrease in y line in Perkopia in 2010. To do this, begin by determining the total income of all individuals in each quintile, using the fact tha ome in the economy is $500,000,000. Next, determine the income of an individual in no change in each quintile by dividing the total income of t e number of people in that quintile. (Hint: Recall that Perkopia has a population of 10,000 people.) Finally, determine whether the individual income for each quintile falls below the poverty income threshold, or poverty line, of $42,350.
The following table summarizes the income distribution for the town of Perkopia, which has a population of 10,000 people. Every individual within an income group earns the same income, and the total annual income in the economy is $500,000,000. Suppose that in 2010, the poverty income threshold, or poverty line, is set at an annual income of $42,350 for an individual. Year 2006 2010 2016 2020 Lowest Quintile Second Quintile 3.0 3.4 3.8 5.0 Share of Total Income in Perkopia (Percent) 8.6 9.4 9.7 11.0 The data in the table suggest that there was Middle Quintile Fourth Quintile no evidence of an increase in 14.0 14.6 15.2 15.5 21.9 22.4 22.9 25.0 Highest Quintile 52.5 50.2 48.4 43.5 income inequality from 2006 to 2020. Complete the following table to help you dete a decrease in y line in Perkopia in 2010. To do this, begin by determining the total income of all individuals in each quintile, using the fact tha ome in the economy is $500,000,000. Next, determine the income of an individual in no change in each quintile by dividing the total income of t e number of people in that quintile. (Hint: Recall that Perkopia has a population of 10,000 people.) Finally, determine whether the individual income for each quintile falls below the poverty income threshold, or poverty line, of $42,350.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:The following table summarizes the income distribution for the town of Perkopia, which has a population of 10,000 people. Every individual within an
income group earns the same income, and the total annual income in the economy is $500,000,000. Suppose that in 2010, the poverty income
threshold, or poverty line, is set at an annual income of $42,350 for an individual.
Year
2006
2010
2016
2020
Lowest Quintile Second Quintile
3.0
3.4
3.8
5.0
Share of Total Income in Perkopia
(Percent)
8.6
9.4
9.7
11.0
The data in the table suggest that there was
Middle Quintile Fourth Quintile
no evidence of
an increase in
14.0
14.6
15.2
15.5
21.9
22.4
22.9
25.0
Highest Quintile
52.5
50.2
48.4
43.5
income inequality from 2006 to 2020.
no change in
Complete the following table to help you dete a decrease in y line in Perkopia in 2010. To do this, begin by determining the total income of all
individuals in each quintile, using the fact tha
ome in the economy is $500,000,000. Next, determine the income of an individual in
each quintile by dividing the total income of t
e number of people in that quintile. (Hint: Recall that Perkopia has a population of
10,000 people.) Finally, determine whether the individual income for each quintile falls below the poverty income threshold, or poverty line, of
$42,350.
Transcribed Image Text:The following table summarizes the income distribution for the town of Perkopia, which has a population of 10,000 people. Every individual within an
income group earns the same income, and the total annual income in the economy is $500,000,000. Suppose that in 2010, the poverty income
threshold, or poverty line, is set at an annual income of $42,350 for an individual.
Year
2006
2010
2016
2020
Lowest Quintile Second Quintile
3.0
3.4
3.8
5.0
Share of Total Income in Perkopia
(Percent)
8.6
9.4
9.7
11.0
The data in the table suggest that there was
Middle Quintile Fourth Quintile
no evidence of
an increase in
14.0
14.6
15.2
15.5
21.9
22.4
22.9
25.0
Highest Quintile
52.5
50.2
48.4
43.5
income inequality from 2006 to 2020.
no change in
Complete the following table to help you dete a decrease in y line in Perkopia in 2010. To do this, begin by determining the total income of all
individuals in each quintile, using the fact tha
ome in the economy is $500,000,000. Next, determine the income of an individual in
each quintile by dividing the total income of t
e number of people in that quintile. (Hint: Recall that Perkopia has a population of
10,000 people.) Finally, determine whether the individual income for each quintile falls below the poverty income threshold, or poverty line, of
$42,350.
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