1. Understanding income inequalityConsider the town of Scholaria with a population of 5,000 people. There are 1,000 high school students, 1,000 undergraduate students, 1,000graduate students, 1,000 economics professors, and 1,000 retired economists. Suppose that the total annual income in the economy is $100 million:Each high school student earns $4,000 annually; each undergraduate earns $10,000 annually; each graduate student earns $25,000 annually; eachprofessor earns $55,000 annually; and each retiree earns $6,000 annually.The following chart shows the income distribution for the town of Scholaria.SHARE OF TOTAL INCOME (Percent)60504030&100HighSchool UndergradsGradsProfsRetirees SHARE OF TOTAL INC10High School Undergrads GradsProfsRetireesSuppose that the government sets the poverty line at an annual income of $8,000. The percentage of people with annual incomes below the povertyline in Scholaria isWhich of the following sequences correctly orders the people of Scholaria from the bottom fifth to the top fifth of income distribution?Retirees, graduate students, undergraduates, high school students, professorsGraduate students, professors, high school students, undergraduates, retireesHigh school students, retirees, undergraduates, graduate students, professorsO Retirees, high school students, graduate students, professors, undergraduatesGiven your previous answers, the income distribution in Scholaria,show income inequality.

Income inequality is an economic concept which explains the unequal distribution of income among the…

the government sets the poverty line at an annual income of $8,000. The percentage of people with annu ria is following sequences correctly orders the people of Scholaria from the bottom fifth to the top fifth of incom Cirees, graduate students, undergraduates, high school students, professors aduate students, professors, high school students, undergraduates, retirees gh school students, retirees, undergraduates, graduate students, professors tirees, high school students, graduate students, professors, undergraduates revious answers, the income distribution in Scholaria show income inequality.

the government sets the poverty line at an annual income of $8,000. The percentage of people with annu ria is following sequences correctly orders the people of Scholaria from the bottom fifth to the top fifth of incom Cirees, graduate students, undergraduates, high school students, professors aduate students, professors, high school students, undergraduates, retirees gh school students, retirees, undergraduates, graduate students, professors tirees, high school students, graduate students, professors, undergraduates revious answers, the income distribution in Scholaria show income inequality.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

If the Gini coefficient of a nation in 1980 was 0.50 and in 2020 it was 0.40, the nation's O income inequality is less in 2020 O income inequality is more in 2020 O tax system is less progressive in 2020 O tax system is more progressive in 2020
Instructions: Use the interactive tool to plot Lorenz curves for the information in the table. Quintile 1st % of Income, United States, 5 2010 % of Income, Bangladesh, 2010 9 2nd 10 13 3rd 14 16 United States data from Census.gov, before-tax income, rounded to 1/100ths. Data for Bangladesh from WorldBank.org, rounded to 1/100ths. 4th 20 21 5th 51 41 Report your answers to two decimal places. According to these data, the Gini coefficient for the United States in 2010 is The Gini coefficient for Bangladesh in 2010 is These data indicate that in 2010, income inequality is (Click to select) in the United States compared to Bangladesh.
1
The following table gives the distribution of the income of the employees of a company Calculate the cumulative percentage of 2000 income. Calculate the Gini coefficient
O A. II, Guaranteed Basic Income OB. IV, Wage Subsidy OC. II, Guaranteed Basic Income O D. II, Earned Income Tax Credit
economic
Why has the distribution of income become more unequal in the last 30 years
K A Lorenz curve plots the A. percentage of total income received by each quintile against the percentage of households in the quintile OB. trend in the cumulative percentage of income received by each quintile against trend in the number of households O C. average income received by each quintile against the number of households in the quintile O D. cumulative percentage of income against the cumulative percentage of households Next