CThe following table summarizes the income distribution for the town of Perkopia, which has a population of 10,000 people. Every individual within anincome 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 atan annual income of $27,400 for an individual.Year200120072013201977°FMostly sunny7F1!Lowest Quintile Second QuintileThe data in the table suggest that there wasO5.03.93.53.2F2Share of Income in 20070-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 allindividuals in each quintile using the fact that total annual income in the economy is $500,000,000. Next, determine the income of an individual ineach quintile by dividing the total income of that quintile by the number of people in that quintile. (Hint: Recall that Perkopia has a population of10,000 people.) Finally, determine whether the individual income for each quintile falls below the poverty line of $27,400.@F3Share of Total Income in Perkopia(Percent)Middle Quintile Fourth Quintile Highest QuintileQ+11.09.98.87.6#ZF416.0$15.214.6114.0Total IncomeF5▬▬▬income inequality from 2001 to 2019.25.022.922.0%521.5Individual IncomeOLF6DF743.048.151.153.7A64-F8&7F9!!!* 008F10-0-(9F1128)0F12FnLockInsertPrt Sc+3:13 PM6/29/2022=XDelA-Backspa QuintileLowestSecondMiddleFourthHighestShare of Income in 2007(Percent)3.99.9Using the information in this table, the poverty rate in Perkopia in 2007 is77°FMostly sunny15.222.948.1F1Which of the following statements are correct? Check all that apply.In the year 2007, the poverty rate after the introduction of the welfare program in Perkopia isSuppose that the government introduces a welfare program in which any individual with an income of less than $27,400 per year receives a lump-sumtransfer payment of $6,000 from the government. Assume that, in the short run, there is no change in labor-supply behavior among the people inPerkopia.F2Total Income(Dollars)Again, suppose the government introduces a welfare program in which any individual with an income of less than $27,400 receives a lump-sumtransfer payment of $6,000 from the government. Raphael, a resident of Perkopia who currently earns an income of $27,102, has the opportunity towork overtime and earn an additional $1,600 this year.-0-@The $6,000 in aid presents a disincentive for Raphael to make more than $27,400 per year.F3:Q+Raphael may accept the overtime if he feels that taking it will increase the chances of his receiving a significant promotion.OLO#Individual IncomeF4▼$(Dollars)F5%5F6Below Poverty Line?iF76kkkkF8&7F9*8F10FO(9F11)F1202FnLockcard this courseInsertPrt Sc+X3:14 PM6/29/2022A-ZLNADelBacksp

Net income alludes to the sum an individual or business makes in the wake of deducting expenses,…

he following table summarizes the income distribution for the town of Perkopla, 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. Year 2001 2007 2013 2019 Share of Total Income in Perkopia (Percent) Middle Quintile Fourth Quintile Highest Quintile Lowest Quintile Second Quintile 5.0 3.9 3.5 3.2 11.0 9.9 8.8 7.6 The data in the table suggest that there was 16.0 15.2 14.6 14.0 25.0 22.9 22.0 21.5 43.0 48.1 51.1 53.7 income inequality from 2001 to 2019.

he following table summarizes the income distribution for the town of Perkopla, 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. Year 2001 2007 2013 2019 Share of Total Income in Perkopia (Percent) Middle Quintile Fourth Quintile Highest Quintile Lowest Quintile Second Quintile 5.0 3.9 3.5 3.2 11.0 9.9 8.8 7.6 The data in the table suggest that there was 16.0 15.2 14.6 14.0 25.0 22.9 22.0 21.5 43.0 48.1 51.1 53.7 income inequality from 2001 to 2019.

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 2SCQ: Jonathan is a single father with one child. He can work as a server for $6 per hour for up to 1,500...

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