Consider ten households, A through J, whose incomes are as shown below (first line). A C D E F G H. J 15 20 35 40 65 115 135 200 375 1,000 0.75% 1.75% The cumulative income share of households A to D is percent. The cumulative income share of households A to I is percent. If income was equally distributed, the income of household G would be and t cumulative income share of household A to D would be percent. For cumulative income share calculations, round to the 2nd decimal place and omit the percent sign.

Consider ten households, A through J, whose incomes are as shown below (first line). A C D E F G H. J 15 20 35 40 65 115 135 200 375 1,000 0.75% 1.75% The cumulative income share of households A to D is percent. The cumulative income share of households A to I is percent. If income was equally distributed, the income of household G would be and t cumulative income share of household A to D would be percent. For cumulative income share calculations, round to the 2nd decimal place and omit the percent sign.

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:...

See similar textbooks

Similar questions

A group 0f 10 people have the following annual incomes: 24,000,18,000,50,000,100,000,12,000,36,000,80,000,10,000,24,000,16,000. Calculate the share of total income that each quintile receives from this income distribution. Do the top and bottom quintiles in this distribution have a greater or larger share of total income than the top and bottom quintiles of the U.S. income distribution?
A group of 10 people have the following annual incomes: 55,000,30,000,15,000,20,000,35,000,80,000,40,000,45,000,30,000,50,000. Calculate the share of total income each quintile of this income distribution received. Do the top and bottom quintile s in this distribution have a greater or larger share of total income than the top and bottom quintiles of the U.S. income distribution for 2005?
Why is there reluctance on the part of some in the United States to redistribute income so that greater equality can be achieved?
What is a "quintile"? Provide and explain one example of how this concept is used in the discussion of income distribution.
The data in the table characterizes the income distribution for a country. What percentage of the total population is categorized as belonging to the second quintile? Give your responses as whole numbers. Income category Share of income (%) Cumulative share of income (%) first quintile 7.0 --- second quintile 9.0 16.0 third quintile --- 35.0 fourth quintile 25.0 --- fifth quintile 40.0 --- percentage of population in second quintile: % What percentage of the total income for the country is earned by the third quintile? percentage earned by the third quintile: % What is the cumulative share of income earned by the poorest 80% of the population? percentage earned by the poorest 80%: %
Questions: what are some of the dimensions of economic inequality and what is considered income? As in the case of income distribution, calculation of wealth distribution is done by different entities using different measurements, resulting in a disparity in outcomes. In fact, commonly, wealthis narrowly defined as financial wealth—namely, cash on handand the money value of tangible and nonliquid assets. Even justthe market valuation of financial portfolios is commonly used todefine financial wealth. However, some may extend the definitionto include the value of income streams and insurance rights that,for the most part, cannot be transacted or encumbered. Theseinclude Medicare, Medicaid, and Social Security. When suchtransfers and public assistance are included, the poor and manyelderly could benefit, reducing the wealth disparity (Galbraith2016). To obtain net wealth, the value of the debts are subtractedsubtracted from the value of the assets. Galbraith stated thatfinancial wealth…
Q8.2) Lorenz CurveA curve illustrating the degree of equality of income distribution in an economy. It plots thecumulative percentage of income received by cumulative shares of the population. Where dowe fare as a country on the Lorenz curve and what does it say about South Africa’s incomedistribution
The following table gives the distribution of the income of the employees of a company Calculate the cumulative percentage of 2000 income. Calculate the Gini coefficient
Suppose that a society contains only two members, a lawyer named Monique and a handyman named James. Five years ago, Monique made $100,000 while James made $50,000. This year, Monique will make $300,000 while James will make $100,000. Which of the following statements about this society’s income distribution are true? a. In absolute dollar amounts, the entire distribution of income has been moving upward. b. In absolute dollar amounts, the entire distribution of income has been stagnant. c. The relative distribution of income has become more equal. d. The relative distribution of income has become less equal. The relative distribution of income has remained constant. f. The rich are getting richer while the poor are getting poorer. g. The rich are getting richer faster than the poor are getting richer.
How has the distribution of household types inthe United States been changing? What are theimplications of these shifts?
Multiple choice question Assume that Denmark has a Gini co-efficient of 0.2. This means that it has a(n): (1) Equal distribution of income;(2) Unequal distribution of income;(3) Perfectly equal distribution of income;(4) Perfectly unequal distribution of income.
A Gini coefficient of 0.15 would indicate that a society’s distribution of income is: A. PERFECTLY EQUAL B. RELATIVELY EQUAL C. MODERATELY UNEQUAL D. VERY UNEQUAL E. THE MOST UNEQUAL POSSIBLE