Microeconomics (2nd Edition) (Pearson Series in Economics)
2nd Edition
ISBN: 9780134492049
Author: Daron Acemoglu, David Laibson, John List
Publisher: PEARSON
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Question
Chapter 2, Problem 1A
(a)
To determine
Manner of representation on the graph when the income inequality increased over the past
(b)
To determine
Manner of representation of workers categories in the manufacturing sector of a country.
(c)
To determine
Manner of representation of the median income in Alabama and Connecticut in
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Question 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.
Please write down only the answers. Attachment screenshot is for your reference as well.
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 $27,400 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
3.8
9.9
15.2
22.5
48.6
2013
3.5
9.2
14.8
22.0
50.5
2019
3.2
8.2
14.0
21.5
53.1
The data in the table suggest that there was_______ [NO Change In (OR) NO Evidence Of (OR) An Increase In (OR) A Decrease In] income inequality from 2001 to 2019.
Complete the following table to help you determine the poverty rate in Perkopia in 2007.…
What is the urban inequality rate compared to national inequality rate in Rio de Janeiro? Give a comparison of urban poverty and urban inequality rates in Rio.
Chapter 2 Solutions
Microeconomics (2nd Edition) (Pearson Series in Economics)
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- How do Economists define Poverty? 1. Economist define the concept of poverty as an economic state where an individual or household level of income is below a level of annual income necessary to provide a minimum or basic standard of living. 2. The poverty rate is directly related to how income is distributed within a society. Per capita income in 2015 and 2016 is estimated at $56,850 and $62,606, respectively. 3. A minimum standard of living refers to the ability of an individual to acquire food, clothing and housing at an adequate level to avoid economic distress. 4. The U.S. government economists evaluate the cost to individuals and households to acquire food, clothing, and housing to maintain a minimum healthy lifestyle. 5. The bench market for the income level necessary to maintain a basic standard of living is based on USDA Research that uses a baseline cost estimate associated with maintaining a healthy diet of 1800 to 2300 calories per day. 5:09 / 5:37 YouTube Q CC Which…arrow_forwardPoverty is measured by the number of people who fall below a certain level of income—called the poverty line—that defines the income one needs for a basic standard of living. The official definition of the poverty line traces back to Group of answer choices A)The Great Depression B)Mollie Orshansky, whose idea was to define a poverty line based on the cost of a healthy diet. C)1953 and the ability to pay for housing and food. D)The 1965 cost of providing food, housing, and transportation.arrow_forward
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