Econ Micro (book Only)
6th Edition
ISBN: 9781337408066
Author: William A. McEachern
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 18, Problem 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.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
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
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 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…
Chapter 18 Solutions
Econ Micro (book Only)
Knowledge Booster
Similar questions
- What is the poverty line?arrow_forwardExplain 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_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
- 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 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 table shows the distribution of personal income in the United States in 2016. Percentage of total income Households Poorest 20 percent 3.1 Second 20 percent Third 20 percent Fourth 20 percent Richest 20 percent 8.2 14.3 23.2 51.2 For all U.S. households to receive an equal share of income, what percentage of total income would the poorest 20 percent of households have to receive from higher-income groups? What percentage would the second poorest have to receive? >>> Answer to 1 decimal place. The poorest 20 percent of households would have to receive percent. The second poorest 20 percent of households have to receive percent.arrow_forward5arrow_forward
- Explain how our economic transition is affecting the national income distribution.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 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…arrow_forwardDefine gross incomes?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
Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage Learning
Principles of Microeconomics (MindTap Course List)EconomicsISBN:9781305971493Author:N. Gregory MankiwPublisher:Cengage Learning
Principles of Economics, 7th Edition (MindTap Cou...EconomicsISBN:9781285165875Author:N. Gregory MankiwPublisher:Cengage Learning
Principles of Economics 2e
Economics
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:OpenStax
Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Principles of Microeconomics (MindTap Course List)
Economics
ISBN:9781305971493
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Principles of Economics, 7th Edition (MindTap Cou...
Economics
ISBN:9781285165875
Author:N. Gregory Mankiw
Publisher:Cengage Learning