ECON MICRO (with MindTap, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)
6th Edition
ISBN: 9781337408059
Author: William A. McEachern
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 18, Problem 3P
To determine
The reason and the time period when the U.S. poverty rate fell the most since 1960 and the income group which has shown the most decline.
Concept Introduction:
Poverty rate - The rate at which the poverty increases or decreases from the given value of analysis.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
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 2001, the poverty line is set at
an annual income of $30,000 for an individual.
Share of Total Income in Perkopia
(Percent)
Year
Lowest Quintile Second Quintile Middle Quintile Fourth Quintile Highest Quintile
2001
5.0
11.0
16.0
24.0
44.0
2007
3.9
9.7
15.2
22.6
48.6
2013
3.5
8.8
14.7
22.0
51.0
2019
3.0
8.6
14.0
21.5
52.9
The data in the table suggest that there was
v income inequality from 2001 to 2019.
Complete the following table to help you determine the poverty rate in Perkopia in 2001. 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…
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…
5
Chapter 18 Solutions
ECON MICRO (with MindTap, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)
Knowledge Booster
Similar questions
- What is the poverty line?arrow_forwardHow does the poverty trap discourage people from working?arrow_forwardMany critics of government programs to help low-income individuals argue that these programs create a poverty trap. Explain how programs such as TANF, EITC, SNAP, and Medicaid will affect low-income individuals and whether or not you think these programs will benefit families and children.arrow_forward
- How can the effect of the poverty trap be reduced?arrow_forwardExcise taxes on tobacco and alcohol and state sales taxes are often criticized for being regressive. Although everyone pays the same rate regardless of Income, why might this be so?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. How does the population of a low-income country such as Ethiopia differ from that of a high-income nation such as the United States in terms of poverty? Do you think the people living in high-income nations have a responsibility to address poverty in the rest of the world ? If so, why? If not, why not?arrow_forwardA sobering census report: Americans' meager income gains The Census Bureau reported that median household income rose 0.7 percent in 2006 to $48,210, but it was still about $1,000 less than in 2000, before the start of the last recession. Households living in poverty fell to 12.3 percent from 12.6 percent in 2005. But in 2006, 36.5 million Americans were living in poverty-5 million more than in 2000, when the poverty rate was 11.3 percent. Source: The New York Times, August 29, 2007 How did income inequality change during 2000, 2005, and 2006? *** During 2000, 2005, and 2006, OA. income inequality increased in all quintiles OB. income inequality decreased at the upper end of the income distribution OC. at the lower end of the income distribution, income inequality increased between 2000 and 2005 and then decreased slightly during 2006 OD. income inequality decreased in all quintiles Search Nextarrow_forwardESSAY: What do you think are the reasons why there are people suffering from poverty? Explain briefly.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles of Economics 2eEconomicsISBN:9781947172364Author:Steven A. Greenlaw; David ShapiroPublisher:OpenStax
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Principles of MicroeconomicsEconomicsISBN:9781305156050Author:N. Gregory MankiwPublisher:Cengage Learning
Principles of Economics 2e
Economics
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:OpenStax
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning
Principles of Microeconomics
Economics
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:Cengage Learning