QUESTION 1 Distribution of Income in Imagination Number of Families Income Range 23,500 less than $18,000 Average Income $15,890 42,410 between $18,000 and $36,000 $27,450 57,330 between $36,000 and $54,000 $46,220 63,490 between $54,000 and $72,000 $65,000 24,770 23,500 between $72,000 and $90,000 more than $90,000 $80,790 $118,750 If the poverty line in Imagination is $18,000, the poverty rate is If the poverty rate in Imagination is 25%, the poverty line is The Human Development Report computes a measure of inequality by dividing the income of the richest 10% of the population by the income of the poorest 10%. The value for this measure of inequality in the US is 15.9 and the value for India is 8.6. We can conclude that distribution of income than the U.S. and a Imagination has a distribution of income than India. 0.5 points

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Table H-1. Income Limits for Each Fifth and Top 5 Percent of All Households: 1967 to 2021 Current Dollars 2021 Year Number (thousands) Lowest Upper limit of each fifth (dollars) Second Third 89,744 Fourth 149,131 Lower limit of top 5 percent (dollars) 131,202 28,007 55,000 Question 04b: Which of the following statements are true? a) The upper limit on income of the lowest 20% of households in the United States is $28,007 meaning the range of the lowest quintile is from zero to $28,007. 286,304 b) The income range of the middle (third) quintile of households is from $55,001 to $89,744. c) The top 20% of households had income of at least $149,132. d) All of the above are true statements for the almost 130 million households in 2021.

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Distribution of Income in Percentage of the United States Households 1985 2020 3.0 8.1 14.0 22.6 52.2 Lowest 20% Second 20% Third 20% Fourth 20% Highest 20% 4.0 9.7 16.3 24.0 46.6 Which statement best describes the Multiple Choice in the table? Between 1985 and 2020, the lowest and the highest quintiles gained larger shares of total income at the expense of the three middle quintiles. Between 1985 and 2020, each quintile gained a larger share of total income because the level of total income increased greatly. Between 1985 and 2020, the highest 20 percent of households gained a larger share of total income at the expense of the lowest 80 percent. Between 1985 and 2020, the lowest 40 percent of households gained a larger share of total income at the expense of the highest 40 percent.