The table shows the distribution of market income. Suppose the government redistributes income by taxing the 60 percent of households with the highest market incomes 10 percent, then distributing the tax collected as an equal benefit to the 40 percent with the lowest market income. What percentage of total market income is redistributed to the second 20 percent of households? What is the income share of the fourth 20 percent of households after tax and redistribution? >>> Answer to 1 decimal place. Households Lowest 20 percent Second 20 percent Third 20 percent Fourth 20 percent Highest 20 percent Market income (percentage of total market income) 5 9 20 30 36 The second 20 percent of households receives benefits equal to percent of total market income.
The table shows the distribution of market income. Suppose the government redistributes income by taxing the 60 percent of households with the highest market incomes 10 percent, then distributing the tax collected as an equal benefit to the 40 percent with the lowest market income. What percentage of total market income is redistributed to the second 20 percent of households? What is the income share of the fourth 20 percent of households after tax and redistribution? >>> Answer to 1 decimal place. Households Lowest 20 percent Second 20 percent Third 20 percent Fourth 20 percent Highest 20 percent Market income (percentage of total market income) 5 9 20 30 36 The second 20 percent of households receives benefits equal to percent of total market income.
Chapter1: Making Economics Decisions
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Transcribed Image Text:The table shows the distribution of market income.
Suppose the government redistributes income by taxing the 60 percent of households with the
highest market incomes 10 percent, then distributing the tax collected as an equal benefit to the
40 percent with the lowest market income.
What percentage of total market income is redistributed to the second 20 percent of households?
What is the income share of the fourth 20 percent of households after tax and redistribution?
>>> Answer to 1 decimal place.
Households
Lowest 20 percent
Second 20 percent
Third 20 percent
Fourth 20 percent
Highest 20 percent
Market income
(percentage of total
market income)
5
9
20
30
36
The second 20 percent of households receives benefits equal to
percent of total market
income.
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