5 Look at the following ratios: • 90/10 ratio = the ratio of Decile 10 income to Decile 1 income • 90/50 ratio = the ratio of Decile 10 income to Decile 5 income (the median) • 50/10 ratio = the ratio of Decile 5 income (the median) to Decile 1 income. (a) For each of these ratios, explain why policymakers might want to compare the two deciles in the income distribution. (b) What kinds of policies or events could affect these ratios?

5 Look at the following ratios: • 90/10 ratio = the ratio of Decile 10 income to Decile 1 income • 90/50 ratio = the ratio of Decile 10 income to Decile 5 income (the median) • 50/10 ratio = the ratio of Decile 5 income (the median) to Decile 1 income. (a) For each of these ratios, explain why policymakers might want to compare the two deciles in the income distribution. (b) What kinds of policies or events could affect these ratios?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter15: Poverty And Economic Inequality

Section: Chapter Questions

Problem 47P: A group of 10 people have the following annual incomes:...

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