The table shows the distribution of market income. Suppose the government redistributes income by taxing the 60 percent of households with the highest market incomes 10 percent, then distributing the tax collected as an equal benefit to the 40 percent with the lowest market income. What percentage of total market income is redistributed to the second 20 percent of households? What is the income share of the fourth 20 percent of households after tax and redistribution? >>> Answer to 1 decimal place. Households Lowest 20 percent Second 20 percent Third 20 percent Fourth 20 percent Highest 20 percent Market income (percentage of total market income) 5 9 20 30 36 The second 20 percent of households receives benefits equal to percent of total market income.
The table shows the distribution of market income. Suppose the government redistributes income by taxing the 60 percent of households with the highest market incomes 10 percent, then distributing the tax collected as an equal benefit to the 40 percent with the lowest market income. What percentage of total market income is redistributed to the second 20 percent of households? What is the income share of the fourth 20 percent of households after tax and redistribution? >>> Answer to 1 decimal place. Households Lowest 20 percent Second 20 percent Third 20 percent Fourth 20 percent Highest 20 percent Market income (percentage of total market income) 5 9 20 30 36 The second 20 percent of households receives benefits equal to percent of total market income.
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter11: Fiscal Policy And The Federal Budget
Section: Chapter Questions
Problem 5WNG
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