ECON MICRO
5th Edition
ISBN: 9781337000536
Author: William A. McEachern
Publisher: Cengage Learning
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Question
Chapter 18, Problem 2.4P
To determine
The reason for an increase in the number of poor children from the families where there are single mothers, although the poverty rate since 1960 has decreased among single mothers.
Concept Introduction:
Poverty rate − It is the rate at which the poverty is increasing or decreasing from a given value.
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economic
This indicator calculates the proportion of the population with incomes below the estimated poverty line:
Select one:
a.
Head Count Ratio
b.
Income Gap Ratio
c.
Human Poverty Index
d.
Human Development Index
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 2016, the poverty income threshold, or poverty line, is set at an annual income of $43,275 for an individual.
Year
Share of Total Income in Perkopia
(Percent)
Lowest Quintile
Second Quintile
Middle Quintile
Fourth Quintile
Highest Quintile
2006
3.0
7.6
14.0
21.7
53.7
2010
3.3
9.0
14.7
22.4
50.6
2016
3.9
9.5
15.0
22.7
48.9
2020
5.0
10.0
16.0
24.0
45.0
The data in the table suggest that there was income inequality from 2006 to 2020.
Complete the following table to help you determine the poverty line in Perkopia in 2016. To do this, begin by determining the total income of all individuals in each quintile, using the fact that total annual income in the economy is $500,000,000.…
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- What is the poverty line?arrow_forwardThe 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 2007, the poverty line is set at an annual income of $12,700 for an individual. Year Share of Total Income in Perkopia (Percent) Lowest Quintile Second Quintile Middle Quintile Fourth Quintile Highest Quintile 2001 3.0 8.1 14.0 21.5 53.4 2007 3.4 9.0 14.8 22.0 50.8 2013 3.8 9.5 15.4 22.7 48.6 2019 4.0 10.0 16.5 24.0 45.5 The data in the table suggest that there was___________ income inequality from 2001 to 2019. Complete the following table to help you determine the poverty rate in Perkopia in 2007. To do this, begin by determining the total income of all individuals in each quintile using the fact that total annual income in the economy is $500,000,000. Next, determine the…arrow_forward1. Income inequality and the poverty rate 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 2007, the poverty line is set at an annual income of $42,350 for an individual. Year Lowest Quintile Second Quintile 2001 2007 2013 2019 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 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 2001 to 2019. MacBook Pro Complete the following table to help you determine the poverty rate in Perkopia in 2007. To do this, begin by determining the total income of all individuals in each quintile using the fact that total annual income in the economy is $500,000,000. Next, determine the income of an…arrow_forward
- Explain how a person can be employed and still be living under the poverty threshold. Please help, thank you(:arrow_forwardQuestion 2 Consider an 8 person economy with the following income distribution: (.6,.6,.8,.8,2,2,6,6) The poverty line is 1 Calculate the level of poverty using P2 of the Foster-Greer-Thorbecke (FGT) Index.arrow_forwardQuestion 15 Which of the below statements is INCORRECT with regard to poverty in the U.S.? The poverty threshold was created my Mollie Orshansky of the Social Security Administration, in the 1960s. The "poverty threshold," "poverty guidelines" and "poverty line" are identical numbers and are all used for exactly the same purpose. For the year 2021, a single individual making less than $12,880 in any of the 48 contiguous states, falls below the poverty line. For the year 2021, a four person family making less that $29,200 a year in any of the 48 contiguous states, falls below the poverty line.arrow_forward
- 1. Income inequality and the poverty rate 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 2012, the poverty line is set at an annual income of $40,850 for an individual. Year 1994 2000 2006 2012 Lowest Quintile 4.0 3.8 3.4 3.0 Share of Total Income in Perkopia (Percent) Middle Quintile Fourth Quintile Second Quintile 10.0 9.7 8.8 8.2 The data in the table suggest that there was 16.5 15.0 14.8 14.0 23.0 22.5 22.0 21.8 Highest Quintile 46.5 49.0 51.0 53.0 income inequality from 1994 to 2012. Complete the following table to help you determine the poverty rate in Perkopia in 2012. To do this, begin by determining the total income of all individuals in each quintile using the fact that total annual income in the economy is $500,000,000. Next, determine the income of an individual…arrow_forwardAbsolute poverty may differ from country to country by a. income brackets b. health metrics c. composition of goods d. social security of every individual e. monetary amountarrow_forwardConsider the following distribution of income in a 12-person economy. (1.1, 1.5, 1.5, 2, 2, 2, 2, 3, 3, 3, 3). Calculate the P₂ FGT poverty measure assuming that the poverty line is 1.8 (Round to 3 decimal places)arrow_forward
- Describe the concept poverty line in detailarrow_forwardThe 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 Quintile Lowest Lowest Quintile Second Quintile 3.0 3.4 3.8 5.0 The data in the table suggest that there was Second Middle Fourth Highest Share of Total Income in Perkopia (Percent) Middle Quintile Fourth Quintile Highest Quintile 8.6 9.4 9.7 11.0 Share of Income in 2010 (Percent) 3.4 9.4 14.6 22.4 50.2 14.0 14.6 15.2 15.5 Complete the following table to help you determine the poverty line in Perkopia in 2010. To do this, begin by determining the total income of all individuals in each quintile, using the fact that total annual income in the economy is $500,000,000. Next, determine the income of…arrow_forwardThe 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…arrow_forward
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