The percentage of income earned by poor and rich in the US.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 20, Problem 1CQQ

To determine

The percentage of income earned by poor and rich in the US.

Expert Solution & Answer

Answer to Problem 1CQQ

Option 'b' is correct.

Explanation of Solution

Explanation:

Option (b):

Poverty line is the line that determines the minimum income required to meet the basic requirements of a quality life by the people. The household with family income less than the poverty line is said to be poor and those who earn very much above the poverty line are considered to be rich by the government. According to the available data about the US economy, the income distribution is very unequal. About the poorest, one-fifth of the total population earns about 4 percent of the income of the economy, whereas the top one-fifth of the rich population earns about 45 percent of the US total economy income today according to the sources.

From the reliable sources, it is obtained that about 4 percent of the total income is earned by the poorest fifth of the population and about 45 percent of the total income is earned by the richest fifth of the population. Since option 'b' gives the values equal to the obtained value, option 'b' is correct.

Option (a):

The data sources reveal that about 4 percent of the income of the US economy is earned by the poorest fifth of the economy, while 45 percent by the richest fifth. Since the option explains that the richest fifth of the economy earns 70 percent and the poorest fifth earns 2 percent which are incorrect to the obtained values, option 'a' incorrect.

Option (c):

The data sources reveal that about 4 percent of the income of the US economy is earned by the poorest fifth of the economy, while 45 percent by the richest fifth. Since the option explains that the richest fifth of the economy earns 35 percent and the poorest fifth earns 6 percent which are incorrect to the obtained values, option 'c' is incorrect.

Option (d):

The data sources reveal that about 4 percent of the income of the US economy is earned by the poorest fifth of the economy, while 45 percent by the richest fifth. This means that there is a high level of inequality in the distribution of income that exists in the economy. Since the option explains that the richest fifth of the economy earns 25 percent and the poorest fifth earns 15 percent which denotes lower levels of inequality in income distribution, they are incorrect to the obtained values, and thus option 'd' is incorrect.

Economics Concept Introduction

Concept introduction:

Income inequality: Income inequality represents the unequal distribution of household or individual income among various economic participants of the society.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

Explain Professor Frederick's "cognitive reflection" test.

11:44 Fri Apr 4 Would+You+Take+the+Bird+in+the+Hand Would You Take the Bird in the Hand, or a 75% Chance at the Two in the Bush? BY VIRGINIA POSTREL WOULD you rather have $1,000 for sure or a 90 percent chance of $5,000? A guaranteed $1,000 or a 75 percent chance of $4,000? In economic theory, questions like these have no right or wrong answers. Even if a gamble is mathematically more valuable a 75 percent chance of $4,000 has an expected value of $3,000, for instance someone may still prefer a sure thing. People have different tastes for risk, just as they have different tastes for ice cream or paint colors. The same is true for waiting: Would you rather have $400 now or $100 every year for 10 years? How about $3,400 this month or $3,800 next month? Different people will answer differently. Economists generally accept those differences without further explanation, while decision researchers tend to focus on average behavior. In decision research, individual differences "are regarded…

Describe the various measures used to assess poverty and economic inequality. Analyze the causes and consequences of poverty and inequality, and discuss potential policies and programs aimed at reducing them, assess the adequacy of current environmental regulations in addressing negative externalities. analyze the role of labor unions in labor markets. What is one benefit, and one challenge associated with labor unions.

Answer 2

Question

Chapter 20, Problem 1CQQ

To determine

The percentage of income earned by poor and rich in the US.

Expert Solution & Answer

Answer to Problem 1CQQ

Option 'b' is correct.

Explanation of Solution

Explanation:

Option (b):

Poverty line is the line that determines the minimum income required to meet the basic requirements of a quality life by the people. The household with family income less than the poverty line is said to be poor and those who earn very much above the poverty line are considered to be rich by the government. According to the available data about the US economy, the income distribution is very unequal. About the poorest, one-fifth of the total population earns about 4 percent of the income of the economy, whereas the top one-fifth of the rich population earns about 45 percent of the US total economy income today according to the sources.

From the reliable sources, it is obtained that about 4 percent of the total income is earned by the poorest fifth of the population and about 45 percent of the total income is earned by the richest fifth of the population. Since option 'b' gives the values equal to the obtained value, option 'b' is correct.

Option (a):

The data sources reveal that about 4 percent of the income of the US economy is earned by the poorest fifth of the economy, while 45 percent by the richest fifth. Since the option explains that the richest fifth of the economy earns 70 percent and the poorest fifth earns 2 percent which are incorrect to the obtained values, option 'a' incorrect.

Option (c):

The data sources reveal that about 4 percent of the income of the US economy is earned by the poorest fifth of the economy, while 45 percent by the richest fifth. Since the option explains that the richest fifth of the economy earns 35 percent and the poorest fifth earns 6 percent which are incorrect to the obtained values, option 'c' is incorrect.

Option (d):

The data sources reveal that about 4 percent of the income of the US economy is earned by the poorest fifth of the economy, while 45 percent by the richest fifth. This means that there is a high level of inequality in the distribution of income that exists in the economy. Since the option explains that the richest fifth of the economy earns 25 percent and the poorest fifth earns 15 percent which denotes lower levels of inequality in income distribution, they are incorrect to the obtained values, and thus option 'd' is incorrect.

Economics Concept Introduction

Concept introduction:

Income inequality: Income inequality represents the unequal distribution of household or individual income among various economic participants of the society.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 20, Problem 1CQQ

To determine

The percentage of income earned by poor and rich in the US.

Expert Solution & Answer

Answer to Problem 1CQQ

Option 'b' is correct.

Explanation of Solution

Explanation:

Option (b):

Poverty line is the line that determines the minimum income required to meet the basic requirements of a quality life by the people. The household with family income less than the poverty line is said to be poor and those who earn very much above the poverty line are considered to be rich by the government. According to the available data about the US economy, the income distribution is very unequal. About the poorest, one-fifth of the total population earns about 4 percent of the income of the economy, whereas the top one-fifth of the rich population earns about 45 percent of the US total economy income today according to the sources.

From the reliable sources, it is obtained that about 4 percent of the total income is earned by the poorest fifth of the population and about 45 percent of the total income is earned by the richest fifth of the population. Since option 'b' gives the values equal to the obtained value, option 'b' is correct.

Option (a):

The data sources reveal that about 4 percent of the income of the US economy is earned by the poorest fifth of the economy, while 45 percent by the richest fifth. Since the option explains that the richest fifth of the economy earns 70 percent and the poorest fifth earns 2 percent which are incorrect to the obtained values, option 'a' incorrect.

Option (c):

The data sources reveal that about 4 percent of the income of the US economy is earned by the poorest fifth of the economy, while 45 percent by the richest fifth. Since the option explains that the richest fifth of the economy earns 35 percent and the poorest fifth earns 6 percent which are incorrect to the obtained values, option 'c' is incorrect.

Option (d):

The data sources reveal that about 4 percent of the income of the US economy is earned by the poorest fifth of the economy, while 45 percent by the richest fifth. This means that there is a high level of inequality in the distribution of income that exists in the economy. Since the option explains that the richest fifth of the economy earns 25 percent and the poorest fifth earns 15 percent which denotes lower levels of inequality in income distribution, they are incorrect to the obtained values, and thus option 'd' is incorrect.

Economics Concept Introduction

Concept introduction:

Income inequality: Income inequality represents the unequal distribution of household or individual income among various economic participants of the society.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 20, Problem 1CQQ

To determine

The percentage of income earned by poor and rich in the US.

Expert Solution & Answer

Answer to Problem 1CQQ

Option 'b' is correct.

Explanation of Solution

Explanation:

Option (b):

Poverty line is the line that determines the minimum income required to meet the basic requirements of a quality life by the people. The household with family income less than the poverty line is said to be poor and those who earn very much above the poverty line are considered to be rich by the government. According to the available data about the US economy, the income distribution is very unequal. About the poorest, one-fifth of the total population earns about 4 percent of the income of the economy, whereas the top one-fifth of the rich population earns about 45 percent of the US total economy income today according to the sources.

From the reliable sources, it is obtained that about 4 percent of the total income is earned by the poorest fifth of the population and about 45 percent of the total income is earned by the richest fifth of the population. Since option 'b' gives the values equal to the obtained value, option 'b' is correct.

Option (a):

The data sources reveal that about 4 percent of the income of the US economy is earned by the poorest fifth of the economy, while 45 percent by the richest fifth. Since the option explains that the richest fifth of the economy earns 70 percent and the poorest fifth earns 2 percent which are incorrect to the obtained values, option 'a' incorrect.

Option (c):

The data sources reveal that about 4 percent of the income of the US economy is earned by the poorest fifth of the economy, while 45 percent by the richest fifth. Since the option explains that the richest fifth of the economy earns 35 percent and the poorest fifth earns 6 percent which are incorrect to the obtained values, option 'c' is incorrect.

Option (d):

The data sources reveal that about 4 percent of the income of the US economy is earned by the poorest fifth of the economy, while 45 percent by the richest fifth. This means that there is a high level of inequality in the distribution of income that exists in the economy. Since the option explains that the richest fifth of the economy earns 25 percent and the poorest fifth earns 15 percent which denotes lower levels of inequality in income distribution, they are incorrect to the obtained values, and thus option 'd' is incorrect.

Economics Concept Introduction

Concept introduction:

Income inequality: Income inequality represents the unequal distribution of household or individual income among various economic participants of the society.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 20, Problem 1CQQ

To determine

The percentage of income earned by poor and rich in the US.

Expert Solution & Answer

Answer to Problem 1CQQ

Option 'b' is correct.

Explanation of Solution

Explanation:

Option (b):

Poverty line is the line that determines the minimum income required to meet the basic requirements of a quality life by the people. The household with family income less than the poverty line is said to be poor and those who earn very much above the poverty line are considered to be rich by the government. According to the available data about the US economy, the income distribution is very unequal. About the poorest, one-fifth of the total population earns about 4 percent of the income of the economy, whereas the top one-fifth of the rich population earns about 45 percent of the US total economy income today according to the sources.

From the reliable sources, it is obtained that about 4 percent of the total income is earned by the poorest fifth of the population and about 45 percent of the total income is earned by the richest fifth of the population. Since option 'b' gives the values equal to the obtained value, option 'b' is correct.

Option (a):

The data sources reveal that about 4 percent of the income of the US economy is earned by the poorest fifth of the economy, while 45 percent by the richest fifth. Since the option explains that the richest fifth of the economy earns 70 percent and the poorest fifth earns 2 percent which are incorrect to the obtained values, option 'a' incorrect.

Option (c):

The data sources reveal that about 4 percent of the income of the US economy is earned by the poorest fifth of the economy, while 45 percent by the richest fifth. Since the option explains that the richest fifth of the economy earns 35 percent and the poorest fifth earns 6 percent which are incorrect to the obtained values, option 'c' is incorrect.

Option (d):

The data sources reveal that about 4 percent of the income of the US economy is earned by the poorest fifth of the economy, while 45 percent by the richest fifth. This means that there is a high level of inequality in the distribution of income that exists in the economy. Since the option explains that the richest fifth of the economy earns 25 percent and the poorest fifth earns 15 percent which denotes lower levels of inequality in income distribution, they are incorrect to the obtained values, and thus option 'd' is incorrect.

Economics Concept Introduction

Concept introduction:

Income inequality: Income inequality represents the unequal distribution of household or individual income among various economic participants of the society.

Answer 6

Chapter 20, Problem 1CQQ

To determine

The percentage of income earned by poor and rich in the US.

Expert Solution & Answer

Answer to Problem 1CQQ

Option 'b' is correct.

Explanation of Solution

Explanation:

Option (b):

Poverty line is the line that determines the minimum income required to meet the basic requirements of a quality life by the people. The household with family income less than the poverty line is said to be poor and those who earn very much above the poverty line are considered to be rich by the government. According to the available data about the US economy, the income distribution is very unequal. About the poorest, one-fifth of the total population earns about 4 percent of the income of the economy, whereas the top one-fifth of the rich population earns about 45 percent of the US total economy income today according to the sources.

From the reliable sources, it is obtained that about 4 percent of the total income is earned by the poorest fifth of the population and about 45 percent of the total income is earned by the richest fifth of the population. Since option 'b' gives the values equal to the obtained value, option 'b' is correct.

Option (a):

The data sources reveal that about 4 percent of the income of the US economy is earned by the poorest fifth of the economy, while 45 percent by the richest fifth. Since the option explains that the richest fifth of the economy earns 70 percent and the poorest fifth earns 2 percent which are incorrect to the obtained values, option 'a' incorrect.

Option (c):

The data sources reveal that about 4 percent of the income of the US economy is earned by the poorest fifth of the economy, while 45 percent by the richest fifth. Since the option explains that the richest fifth of the economy earns 35 percent and the poorest fifth earns 6 percent which are incorrect to the obtained values, option 'c' is incorrect.

Option (d):

The data sources reveal that about 4 percent of the income of the US economy is earned by the poorest fifth of the economy, while 45 percent by the richest fifth. This means that there is a high level of inequality in the distribution of income that exists in the economy. Since the option explains that the richest fifth of the economy earns 25 percent and the poorest fifth earns 15 percent which denotes lower levels of inequality in income distribution, they are incorrect to the obtained values, and thus option 'd' is incorrect.

Economics Concept Introduction

Concept introduction:

Income inequality: Income inequality represents the unequal distribution of household or individual income among various economic participants of the society.

Answer 7

Chapter 20, Problem 1CQQ

To determine

The percentage of income earned by poor and rich in the US.

Answer 8

Expert Solution & Answer

Answer to Problem 1CQQ

Option 'b' is correct.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

Explanation:

Option (b):

Poverty line is the line that determines the minimum income required to meet the basic requirements of a quality life by the people. The household with family income less than the poverty line is said to be poor and those who earn very much above the poverty line are considered to be rich by the government. According to the available data about the US economy, the income distribution is very unequal. About the poorest, one-fifth of the total population earns about 4 percent of the income of the economy, whereas the top one-fifth of the rich population earns about 45 percent of the US total economy income today according to the sources.

From the reliable sources, it is obtained that about 4 percent of the total income is earned by the poorest fifth of the population and about 45 percent of the total income is earned by the richest fifth of the population. Since option 'b' gives the values equal to the obtained value, option 'b' is correct.

Option (a):

The data sources reveal that about 4 percent of the income of the US economy is earned by the poorest fifth of the economy, while 45 percent by the richest fifth. Since the option explains that the richest fifth of the economy earns 70 percent and the poorest fifth earns 2 percent which are incorrect to the obtained values, option 'a' incorrect.

Option (c):

The data sources reveal that about 4 percent of the income of the US economy is earned by the poorest fifth of the economy, while 45 percent by the richest fifth. Since the option explains that the richest fifth of the economy earns 35 percent and the poorest fifth earns 6 percent which are incorrect to the obtained values, option 'c' is incorrect.

Option (d):

The data sources reveal that about 4 percent of the income of the US economy is earned by the poorest fifth of the economy, while 45 percent by the richest fifth. This means that there is a high level of inequality in the distribution of income that exists in the economy. Since the option explains that the richest fifth of the economy earns 25 percent and the poorest fifth earns 15 percent which denotes lower levels of inequality in income distribution, they are incorrect to the obtained values, and thus option 'd' is incorrect.

Answer 12

Economics Concept Introduction

Concept introduction:

Income inequality: Income inequality represents the unequal distribution of household or individual income among various economic participants of the society.

Answer 13

Ch. 20.1 - Prob. 1QQ Ch. 20.2 - Prob. 2QQ Ch. 20.3 - Prob. 3QQ Ch. 20 - Prob. 1CQQ Ch. 20 - Prob. 2CQQ Ch. 20 - Prob. 3CQQ Ch. 20 - Prob. 4CQQ Ch. 20 - Prob. 5CQQ Ch. 20 - Prob. 6CQQ Ch. 20 - Prob. 1QR

The percentage of income earned by poor and rich in the US.

The percentage of income earned by poor and rich in the US.

Answer to Problem 1CQQ

Explanation of Solution

Want to see more full solutions like this?

Chapter 20 Solutions